NASSCOM: By 2025, AI can boost GDP by $500 billion.

About NASSCOM:

• The National Association of Software and Service Companies (NASSCOM) is a non-governmental organisation in India that works to promote the country’s technology sector. NASSCOM was founded in 1988 and is a non-profit organisation. NASSCOM launched a programme in 2013 to support 10,000 businesses in India by 2023. NASSCOM supports activities aimed at Indian start-ups.

KEY POINTS:

• NASSCOM, an Indian non-governmental trade association and advocacy group, claims that an integrated AI and data use plan could boost India’s GDP by $500 billion by 2025.
• The NASSCOM, in collaboration with EY and with backing from Microsoft, EXL, and Capgemini, has introduced an AI Adoption Index to track sectoral progress on AI adoption in the nation.
• The index was the first comprehensive analysis of AI adoption trends in India, starting with four important industries: banking, financial services and insurance (BFSI), consumer packaged goods (CPG), retail, healthcare, and industrials & automotive.
• Together, these industries could account for more than 60% of AI’s potential value-add to the nation’s GDP by 2025, which is estimated to be between $450 and $500 billion.
• According to the top body, investments in AI have increased significantly over the past two years, rising from $36 billion in 2020 to a high of $77 billion in 2021.
• Even while India’s current pace of AI investments was projected to expand at a CAGR of 30.8 percent and reach $881 million by 2023, it would still only account for 2.5 percent of the $340 billion in total worldwide AI expenditures.
• This would present a huge chance for Indian businesses to increase their investments in and adoption of AI in order to promote equal growth across all sectors.