India has a bold, transformational vision for 2047, which will be driven by AI
India envisions becoming a USD 30 trillion economy with a per-capita income of USD 18-20,000 by its 100th year of independence. This requires enabling the delivery of world-class infrastructure and facilities in both rural and urban areas, and promoting the digital economy and investment. While India has excelled in digital transformation in sectors like e-commerce, fintech, and health-tech, the future economy will be powered by artificial intelligence (AI), making global AI leadership essential to realising this vision.
AI is already revolutionising the country’s digital landscape, with an estimated economic opportunity of USD 430 billion by 2030. By harnessing subfields like generative AI, machine learning (ML), robotics, natural language processing (NLP), and computer vision, AI has facilitated much interest and innovation in India across businesses of all sizes. It will be key to achieving India’s ambitious Vision 2047 goals and positioning India as a global leader in the AI revolution.
Thanks to three key strengths, India is well-positioned to become a global AI hub. First, its energy mix includes 22% renewables, with plans to install 500 GW of renewable energy by 2030. Second, India has a highly skilled workforce, including nearly five million programmers and a 92% generative AI adoption rate among knowledge workers. Third, its strategic location provides direct access to major global economic corridors, including Europe, the Middle East, China, Southeast Asia, and Australia.
The vision needs to be backed by bold actions
Technological revolutions have always transformed the global economy. From the UK’s industrial revolution to Silicon Valley’s rise as a digital leader, and the internet revolution creating hubs like Singapore, Frankfurt, and London, bold and decisive actions have consistently attracted capital, talent, and business. India has also reaped the fruits of its swift and decisive policy action through liberalisation policies and facilitating the entry of private operators, catalysing its own remarkable mobile connectivity revolution. For India to emerge a winner in this subsequent AI revolution, this demands bolder, decisive action.
A transformative approach is required for India to capitalise on its natural advantages, capture this opportunity, and take the lead in the global AI race. Countries like the US, China, Saudi Arabia, the UAE, and those in Southeast Asia, are rapidly building data centre ecosystems to drive AI growth, attract investment, and secure talent. The winners of this AI revolution will be countries that are able to act fast, boldly, and collaboratively with the private sector.
AI data cities are a solution to drive India’s AI leadership
The global AI revolution is rapidly accelerating the demand for data centre capacity, driven by the increasing computational needs of AI systems. Our analysis predicts that India will need at least 35 GW of state-of-the-art data centre capacity by 2047 to become the leading AI training and development hub. Achieving this requires a strategic approach, integrating renewable energy, network, and skilled talent, while diversifying capacity across regions. Standalone data centres won’t suffice; India should focus on creating ‘AI data cities’—specialised zones and hubs of innovation designed to power AI innovation, accelerate AI research, and foster thriving ecosystems.
Each AI data city will house a cluster of gigawatt state-of-the-art AI data centres to meet global demand, attracting top-tier AI talent and resources to support key activities like training and inference for global models. These will serve as catalysts for research, development, and deployment of AI solutions across key sectors. Start-ups, renewable energy providers, high-end manufacturing and Industry 4.0 innovators will coalesce in these spaces, fuelling further innovation and economic growth. Moreover, AI data cities will spur the development of housing, transportation, and essential civil services in and around these areas for people to live and work.
Our analysis estimates that this investment could contribute a cumulative USD 6.8 trillion in value added to India’s gross domestic product (GDP) from 2027 to 2047 and support more than 39 million jobs by 2047.
AI data cities will create this economic and employment value through the following channels of impact:
- Investment impact: Construction and ongoing operations of the AI data cities and additional revenue from the export of services such as AI training and inferencing.
- Catalytic impact: Productivity and innovation gains to Indian businesses due to increased availability and adoption of AI and cloud.
Policy actions are needed to make AI data cities a reality
India is poised for an AI revolution—it’s time to seize this opportunity and establish itself as a global hub for AI-driven innovation. By prioritising robust AI leadership and transformative initiatives like AI data cities, India can drive growth, achieve its Vision 2047 goals, and unlock significant economic and policy benefits.
In the race to lead, the winners will be those who act swiftly and strategically. It is imperative that India implements timely and proactive policy reforms and fosters a supportive digital ecosystem. Only through bold, transformative actions, such as creating AI data cities, can India ensure that it remains a leader in the rapidly evolving global AI landscape, attracting the investment and talent necessary for long-term success. The time to act is now, before the window of opportunity for establishing India as a global AI leader passes.
