AI Could Add $500 Billion to India’s Economy by 2030, Says IBM-IndiaAI Study
A new report finds strong business optimism around AI’s economic impact, even as companies face infrastructure, data and skills gaps.
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Artificial intelligence could add more than $500 billion to India’s economy by 2030, according to a joint study by IBM Institute for Business Value and IndiaAI.
The report, titled From Promise to Power: How AI is Redefining India’s Economic Future, says India is entering a phase in which AI is expected to move beyond experimentation and become a stronger driver of national growth.
Four in five Indian business leaders said AI investments would directly influence the country’s economic trajectory, while 73% said India could emerge as a leading global AI nation by 2030, according to IBM’s release.
The report also points to a gap between ambition and execution. About 72% of surveyed organizations said they were behind global peers in AI adoption.
“India is no longer just participating in the global AI conversation, we are helping shape it,” said S. Krishnan, Secretary at the Ministry of Electronics and Information Technology. “Our vision is clear. AI must evolve as an extension of our people’s aspirations, driving inclusive growth and national progress.”
The findings suggest growing interest in sovereign and hybrid AI deployment models. Around 74% of surveyed executives said control over where data resides is essential, while seven in 10 said hybrid architectures improve control over data location without significantly raising costs.
Despite rising adoption, infrastructure and data challenges remain. The study found that 57% of organizations cited inconsistent data quality as a barrier, while 77% pointed to limited access to affordable and secure cloud infrastructure.
“AI has the potential to become one of the most powerful growth engines for India’s economy,” said Sandip Patel, Managing Director, IBM India and South Asia. “With the right investments in skills, governance, and infrastructure, India can translate AI ambition into sustained economic impact.”
The report also highlights a widening skills gap. Only about 30% of employees currently have the level of AI literacy businesses require. By 2030, that figure will need to rise to nearly 57%, implying a need for more than 350 million AI-skilled workers.
Only 15% of surveyed organizations are currently scaling AI through significant cross-functional investments, while the remaining 85% are still in pilot-stage initiatives.
Governance and partnerships are also emerging as constraints. Around 68% of enterprises cited gaps in AI governance as a barrier to scaling, while the same share said India needs a stronger ecosystem-oriented approach to AI adoption.
