Skip to main content

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:
  1. Select companies in the BFSI, CG, and IG sectors have achieved high AI maturity, positioning themselves at par with global benchmarks
  2. A Significant Leap: 10% organizations have transformed their AI capabilities in the last 3 years, and they come from across sizes
  3. 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
  4. 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.
  5. 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
  6. India has only around 4.5% of the world’s AI professionals, and the talent crunch will get more acute
  7. 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

TRENDING

राजस्ऄान, मध्यप्रदेश, पश्चिम बंगाल, ą¤ारखंऔ और केरल फिसऔ्औी: जल जीवन मिशन के लक्ष्य को पाने समन्वित प्रयास जरूरी

- राज कुमार सिन्हा*  जल संसाधन से जुऔ़ी स्ऄायी समिति ने वर्तमान लोकसभा सत्र में पेश रिपोर्ट में बताया है कि "नल से जल" मिशन में राजस्ऄान, मध्यप्रदेश, पश्चिम बंगाल, ą¤ारखंऔ और केरल फिसऔ्औी साबित हुą¤ हैं। ą¤œą¤¬ą¤•ि देश के 11 राज्यों में शत-प्रतिशत ग्रामीणों को नल से जल आपूर्ति शुरू कर दी ą¤—ą¤ˆ है। रिपोर्ट में समिति ने केंद्र सरकार को सिफारिश की है कि मिशन पुरा करने में राज्य सरकारों की समस्याओं पर गौर किया जाą¤। 

'A tribal lifeline': Health rights group asks Gujarat governor to halt Vyara govt hospital privatization

By A Representative  In a strong appeal to the Governor of Gujarat, the National Health Rights Alliance (NHRA)—an initiative of the National Alliance of People's Movements (NAPM)—has urged the state to halt the ongoing move to privatize the Vyara Government Hospital and Medical College in Tapi district. 

Old bias, new excuses: How western media misrepresents India’s anti-terror strikes

By Gajanan Khergamker  The recent Indian military strikes on Pakistan, dubbed Operation Sindoor, have sparked a storm of international media coverage. Several prominent outlets have portrayed India as the aggressor in the escalating conflict, raising concerns over biased reporting. This commentary critiques coverage by foreign media outlets such as The New York Times , Reuters, BBC, and CNN, which have often been accused of framing India’s actions as escalatory while downplaying or omitting critical context regarding Pakistan’s role in fostering terrorism. By examining historical patterns and current geopolitical dynamics, this analysis highlights the recurring selective framing, omission of evidence, and a tendency to favor narratives aligned with Western geopolitical interests over factual nuance.

Censor Board's bullying delays 'Phule': A blow to India's democratic spirit

By Vidya Bhushan Rawat*  A film based on the life and legacy of Jyotiba Phule and Savitribai Phule was expected to release today. Instead, its release has been pushed to the last week of April. The reason? Protests by self-proclaimed guardians of caste pride—certain Brahmin groups—and forced edits demanded by a thoroughly discredited Censor Board.

CASR urges immediate halt to Operation Kagaar, calls for peace talks with Maoists

By A Representative   The Campaign Against State Repression (CASR), a collective of over 40 civil society organizations, has issued a press statement demanding an immediate end to "Operation Kagaar" and alleged state-led killings of Maoist rebels and indigenous people in central India. The group also called on the central government to create a conducive environment for initiating peace talks with the banned Communist Party of India (Maoist).

जैविक जीवित संसाधनों व प्रकृति पर निर्भर मजदूरों की व्यापक आर्ऄिक सुरक्षा कैसे हो?

- राज कुमार सिन्हा*  भारत में  60 करोą„œ से अधिक लोग भूमि, जल, जंगल और समुद्र जैसे प्राकृतिक स्रोतों पर निर्भर हैं । देश में 14.6 करोą„œ छोटे और सीमांत किसान, 14.4 करोą„œ खेतिहर मजदूर ( ą¤¬ą„œी संख्या में दलित हैं), 27.5 करोą„œ वन निवासी, 2.8 करोą„œ मछुआरे, 1.3 करोą„œ पशुपालक और 1.7 करोऔ़ कारीगर हैं जो सीधे तौर पर  प्रकृति के साऄ और प्रकृति के भरोसे काम कर रहे हैं । लगभग 6 करोą„œ मौसमी मजदूर हैं जो काम के सिलसिले में लगातार अपने गांव से बाहर जाते हैं और लौटते हैं। प्रकृति निर्भर समुदायों की आर्ऄिक गतिविधियां जो ą¤¬ą„œे पैमाने पर जीवन निर्वाह और छोटी आय के लिą¤ है। वर्तमान आर्ऄिक नीतियों के कारण, जो कॉर्पोरेट्स और ą¤¬ą„œे व्यवसायों का समर्ऄन करती है, प्रकृति निर्भर समुदाय के लिą¤ अव्यवहारिक होती जा रही है। 

Naveen Gautam creates history, becomes first Dalit youth to moderate session at UN

By A Representative  In a historic moment for Communities Discriminated on Work and Descent, Mr. Naveen Gautam of the Global Forum of Communities Discriminated on Work and Descent (GFoD) became the first Dalit youth to moderate a session at any United Nations forum.

Kashmiriyat lives: Beyond the prime-time lies

By Rimmi Vaghela  I am Rimmi from Ahmedabad. I contemplated this blog on April 27, 2025 in Jammu, when my plans of revisiting the paradise called Kashmir were shattered—not by fear, but by circumstances and sorrow. I decided to share my story with a heavy heart, hoping it reaches those who still believe in the warmth of humanity over the divisive noise of prime-time media.

In the fury of war, humanity succumbs to the illusion of nationalism

By Dr. Mansee Bal Bhargava*    On May 7, Rabindranath Tagore Jayanti—also known as Rabindra Jayanti or Poncheeshe Boishakh in Kolkata—we celebrated the birth anniversary of the renowned poet, writer, philosopher, reformer, and Nobel laureate. On this occasion, I draw attention to Tagore’s timeless quotes, which resonate profoundly today, perhaps more than ever, as we live in a time when the ruling government has pushed the nation toward war.  

Choice of the word 'Sindoor' in India's anti-terror operation: Symbolic feminism or patriarchal strategy?

By Dr. Mansee Bal Bhargava*  In the aftermath of a war and subsequent ceasefire in 2025, Operation Sindoor has emerged as a focal point of national discourse, not only for its military objectives but also for its symbolic framing. The operation, named after a traditional marker of Hindu marital identity, and the prominent roles of Colonel Sofiya Qureshi of the Indian Army and Wing Commander Vyomika Singh of the Indian Air Force in its media briefings, have been widely celebrated as a step toward gender inclusivity.