India’s AI moment: Shaping the future of intelligent industry

Artificial Intelligence (AI) is reshaping global industry at a pace that rivals the great industrial revolutions of the past. It is transforming how products are designed, how supply chains operate and how services are delivered. In the AI era, industrial disruption refers to the shift from traditional product models to intelligent, data-driven systems that optimise outcomes in real time. Nations that embed AI deeply into their economic structures will define the next global order of competitiveness. India stands at a pivotal moment in this transformation. With strong digital public infrastructure and proactive policy leadership, the country is moving steadily from being a participant in the AI wave to emerging as a global shaper of intelligent industry.

AI is already redefining the operating logic of multiple sectors. In manufacturing, smart factories powered by predictive maintenance and AI-driven quality control are reducing downtime and improving yield. GenAI tools are compressing design cycles and enabling faster product innovation. In healthcare, AI-assisted diagnostics are enhancing precision and expanding reach. Agriculture is leveraging AI for crop advisory, yield optimisation and climate resilience. Logistics networks rely on intelligent routing and automated warehousing, while financial services deploy AI for fraud detection, credit analytics and risk modelling. This transformation is not replacing human capability but augmenting it. Automation combined with augmentation is enabling engineers, managers and frontline workers to make faster, data-driven decisions. Productivity and cost optimisation are no longer incremental shifts. Countries investing early in compute, talent and digital infrastructure will define the next industrial order.

India’s AI journey is anchored in strategic vision at the highest level. Prime Minister Narendra Modi has consistently articulated technology and digital innovation as foundational pillars of India’s growth and Viksit Bharat ambitions. This vision has been translated into structured implementation through the India AI Mission, led by the Ministry of Electronics and Information Technology (MeitY).

With a sufficient financial outlay and plans to deploy GPUs through a federated compute network, the mission is building national AI infrastructure at scale. It aims to train students and professionals and support many AI startups, strengthening India’s innovation ecosystem. The approach emphasises democratisation of compute access, indigenous capability development, responsible AI frameworks and strong public-private tie-up.

India’s ambition is equally visible on the global stage. The India AI Impact Summit convened global industry leaders, policymakers, academia and startups to deliberate on scalable and responsible AI adoption. The summit underscored India’s confidence in shaping AI governance, compute infrastructure and safety frameworks. It created a platform for international collaboration, reinforcing India’s diplomatic and technological influence in AI discourse. It stands as a clear statement that India intends to define the future of AI, not simply adapt to it.

For Indian industry, the economic implications are significant. NITI Aayog’s analysis indicates that accelerated AI adoption across industries could contribute an additional $500–600 billion to India’s GDP by 2035 beyond baseline projections. In manufacturing, AI-led productivity improvements could generate $85–100 billion in incremental value by 2035. The technology services sector, which contributes nearly 7% to GDP, must aim to scale to $750–850 billion by 2035 to sustain global leadership.

MSMEs, the backbone of India’s manufacturing and supply chain ecosystem, can significantly benefit from AI-enabled shared infrastructure, digital integration and smarter production systems. Agritech solutions powered by AI can improve productivity, while AI-led exports and intelligent supply chains can enhance competitiveness. Workforce transformation will be central. As roles evolve, large-scale reskilling and AI literacy initiatives will convert India’s demographic dividend into a technological advantage.

Rapid AI adoption also demands robust regulatory frameworks and transparent data governance. A balanced approach, underpinned by cybersecurity and ethical standards, is essential for sustainable growth. Responsible AI deployment must safeguard citizens while enabling innovation. India’s policy approach emphasises inclusivity, ensuring that AI benefits extend beyond large corporates to MSMEs, startups and regional enterprises as well as the rural economy, both agricultural and non-agricultural. As global debates intensify around AI safety and ethics, India can serve as a bridge between developed and developing nations, advocating equitable and secure AI governance.

AI is the defining industrial revolution of our time. The opportunity is measurable, the competitive stakes are high and the window for decisive action is limited. Through the strategic vision of the Prime Minister and the mission-driven leadership of MeitY, India has laid a strong foundation for AI-led growth. With the government creating the enabling ecosystem, it is now for industry to accelerate adoption, invest in innovation and scale AI across manufacturing, technical services and MSMEs. If India acts with urgency, it will not merely participate in industrial disruption but instead will shape the future of intelligent industry for the world.

Note: This article was originally published in The Financial Express on 24 February 2026.