RBI Deputy Governor Michael Debabrata Patra announced that generative artificial intelligence (AI) could contribute between USD 359 billion and USD 438 billion to India's GDP by the fiscal year 2029-30. The adoption of AI in production processes among Indian firms has surged from 8% in 2023 to 25% in 2024.
Globally, generative AI is projected to elevate GDP by $7-10 trillion over the next three years, with large language models potentially increasing worker productivity by 8 to 36%. Patra emphasized that the digital revolution has transformed the global economy, which now accounts for over 15% of global GDP.
India is positioned at the forefront of this transformation, particularly in financial technology (FinTech), which is accelerating digital payments. The India Stack initiative is enhancing financial inclusion and optimizing banking infrastructure, covering aspects like direct benefit transfers and tax collections.
With a robust digital public infrastructure, a vibrant IT sector, and a large youth population, India is set to unlock new growth opportunities. Patra noted that AI-assisted reviews of Indian banks' annual reports indicate significant productivity gains from digitalization.
Surveys reveal that while all Indian banks offer mobile and internet banking, 75% provide online account opening and digital KYC services. Furthermore, 60% engage in digital lending, 50% offer payment aggregator services, and 41% utilize chatbots, showcasing a trend towards comprehensive digital banking solutions.