Successful adoption of AI could add up to 1.4% points annually to GDP growth of India

Indian Institute of Management-Ahmedabad and Boston Consulting Group note on their joint study ‘AI in India – A Strategic Necessity’:

***

The Brij Disa Centre for Data Science and Artificial Intelligence (CDSA) at the Indian Institute of Management Ahmedabad (IIMA), a premier global management Institute and BCG X, the AI, and Digital Transformation unit of the Boston Consulting Group (BCG) have collaborated to release a comprehensive report titled "AI in India - A Strategic Necessity" on the AI readiness levels of Indian businesses.
The report findings are based on the study of 130 companies from the Banking, Financial Services, and Insurance (BFSI), Consumer Goods (CG), and Industrial Goods (IG) sectors along with extensive interviews and surveys conducted on CXO’s of large-sized, medium, and small organisations. The study objectively and wholistically measures the ability of a company to leverage AI to drive its strategic objectives and enhance its financial and operational performance.
The report was released at the IIMA campus by Professor Bharat Bhasker, Director, IIMA, Professor Ankur Sinha, Professor Anindya Chakrabarti, Co-Chairs of the Brij Disa Centre for Data Science and Artificial Intelligence, Professor Arindam Banerjee, Debjit Ghatak, IIMA alumnus and General Manager, Brij Disa Centre for Data Science and AI, Sumit Sarawgi, Managing Director and Senior Partner, BCG, Deep Narayan Mukherjee, Vice President - Data Science, Rajat Mathur, Partner, BCG , all co-authors of the report from IIM A and BCG respectively.
Releasing the study, Professor Bharat Bhasker, Director of IIMA, said, "India is poised to enter into a digital revolution where successful AI adoption by our industry can be a crucial determinant of India’s competitiveness globally. Successful adoption of AI could add up to 1.4 percentage points annually to real GDP growth of India. From the perspective of corporates, successful adoption of AI is expected to add over a five-year period, INR 1.5-2.5 trillion in incremental pre-tax profit for the top 500 Indian companies alone. This presents an incredible opportunity for the Indian industry and our companies can leverage the widespread internet access and cost -effective labour to move ahead and align themselves to the global AI maturity standards.
"I am confident that the joint study by the Brij Disa Centre IIM A and BCG, will have significant implications for policymakers as well as industry lenders to foster a conducive ecosystem for the adoption of AI by Indian organisations, and their success in translating it into business performance.”
The report emphasizes the significance of achieving an advanced level of AI maturity for success in today's business landscape. Sumit Sarawgi, Managing Director & Senior Partner, BCG commented, “Investments into AI could deliver extraordinary returns but success hinges on deploying AI at scale. An organisation wide commitment is required in successful AI driven transformation of the organisation. The reason being success from AI adoption, algorithms drive approximately 10% of the success, while data and technology infrastructure adds a further 20%. The remaining 70% hinges on people, processes, and business transformation.”
The report provides key insights into India’s corporate AI landscape and roadmaps in AI adoption. The study reveals that select Indian BFSI companies (particularly banks and new-age NBFCs) have very high AI Maturity, on par with global frontrunners. It divides companies into four groups based on their maturity level— Leaders, Steady Followers, Leapfroggers and Laggards. 11% of companies in the set were adjudged Leaders, that now face a stiff challenge from the Leapfroggers (9% of the companies) who started their AI-driven transformation journey late but have improved sharply in AI Maturity in the last three years, converging with the Leaders on most aspects of AI Maturity. However, the concern emerged with Laggards, about 2/3rds of the companies, that have some exposure and investment in AI in their Technology, Data and Analytical capabilities.
The report offers actionable guidance for companies with mid-level AI maturity to progress towards global best-in-class AI maturity levels. For leaders in AI adoption, the report focuses on exploring the next frontiers of AI excellence. Research shows that AI investments augmenting end-user value and topline growth could drive significant economic and wage expansion. The opportunity is India’s for the taking—the challenge is now to turn the enormous potential of AI into reality.
Key Highlights:

Select companies in the BFSI, CG, and IG sectors have achieved high AI maturity, positioning themselves at par with global benchmarks
A Significant Leap: 10% organizations have transformed their AI capabilities in the last 3 years, and they come from across sizes
Data mindset in Leadership is the Key: Top 500 Indian companies require 1 Million hours of training in upskilling mid and senior level management on the business aspects of AI, digital transformation, Agile ways of working and more
Most MSMEs are now able to leverage AI because of on-demand access to business software and the availability of services like digital payment gateways, fraud detection systems and CRM.
Dearth of Data scientists with domain expertise: Need for 25,000 to 30,000 advanced practitioners of AIML expected in Top 500 Companies in the next 3-5 years
India has only around 4.5% of the world’s AI professionals, and the talent crunch will get more acute
Benefits of AI: INR 1.5-2.5 Trillion incremental pre-tax profit for the top 500 Indian companies in next 5 years

---
Click here for complete report

Comments

'Threat to farmers’ rights': New seeds Bill sparks fears of rising corporate control

By Bharat Dogra As debate intensifies over a new seeds bill, groups working on farmers’ seed rights, seed sovereignty and rural self-reliance have raised serious concerns about the proposed legislation. To understand these anxieties, it is important to recognise a global trend: growing control of the seed sector by a handful of multinational companies. This trend risks extending corporate dominance across food and farming systems, jeopardising the livelihoods and rights of small farmers and raising serious ecological and health concerns. The pending bill must be assessed within this broader context.

Zhou Enlai: The enigmatic premier who stabilized chaos—at what cost?

By Harsh Thakor* Zhou Enlai (1898–1976) served as the first Premier of the People's Republic of China (PRC) from 1949 until his death and as Foreign Minister from 1949 to 1958. He played a central role in the Chinese Communist Party (CCP) for over five decades, contributing to its organization, military efforts, diplomacy, and governance. His tenure spanned key events including the Long March, World War II alliances, the founding of the PRC, the Korean War, and the Cultural Revolution.

Delhi Jal Board under fire as CAG finds 55% groundwater unfit for consumption

By A Representative A Comptroller and Auditor General (CAG) of India audit report tabled in the Delhi Legislative Assembly on 7 January 2026 has revealed alarming lapses in the quality and safety of drinking water supplied by the Delhi Jal Board (DJB), raising serious public health concerns for residents of the capital.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Pairing not with law but with perpetrators: Pavlovian response to lynchings in India

By Vikash Narain Rai* Lynch-law owes its name to James Lynch, the legendary Warden of Galway, Ireland, who tried, condemned and executed his own son in 1493 for defrauding and killing strangers. But, today, what kind of a person will justify the lynching for any reason whatsoever? Will perhaps resemble the proverbial ‘wrong man to meet at wrong road at night!’

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra* The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Uttarakhand tunnel disaster: 'Question mark' on rescue plan, appraisal, construction

By Bhim Singh Rawat* As many as 40 workers were trapped inside Barkot-Silkyara tunnel in Uttarkashi after a portion of the 4.5 km long, supposedly completed portion of the tunnel, collapsed early morning on Sunday, Nov 12, 2023. The incident has once again raised several questions over negligence in planning, appraisal and construction, absence of emergency rescue plan, violations of labour laws and environmental norms resulting in this avoidable accident.

Why economic war waged by US has created the situation for Iran's turmoil

By Vijay Prashad Iran is in turmoil. Across the country, there have been protests of different magnitudes, with violence on the increase with both protesters and police finding themselves in the morgue. What began as work stoppages and inflation protests drew together a range of discontent, with women and young people frustrated with a system unable to secure their livelihood. Iran has been under prolonged economic siege and has been attacked directly by Israel and the United States not only within its borders, but across West Asia (including in its diplomatic enclaves in Syria). This economic war waged by the United States has created the situation for this turmoil, but the turmoil itself is not directed at Washington but at the government in Tehran.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Search This Blog