March 13, 2025
4 mins read

Time to Bring a Billion Indians into AI-Driven Digital Economy: Nandan Nilekani

He highlighted the rapid growth of India’s startup ecosystem, noting that while the Indian economy is growing at an 8 percent annual rate, the number of startups is expected to grow at a compounded annual growth rate (CAGR) of 20 percent, potentially reaching the 1-million mark within the next decade

Nandan Nilekani, co-founder of Infosys and architect of Aadhaar, has emphasized the urgent need to develop artificial intelligence (AI) solutions tailored to India’s language diversity in order to bring a billion Indians into the AI-driven digital economy. He made these remarks during an event hosted by Arkam Ventures, highlighting the critical role of AI in driving inclusive growth across various sectors.
According to Nilekani, the vast linguistic diversity of India presents both a challenge and an opportunity when it comes to AI. Open-source AI models, like AI4Bharat, are working to create Indian language datasets that can be leveraged to power AI-driven services in agriculture, education, and healthcare. These AI models are essential to ensuring that the benefits of AI reach India’s diverse population, enabling millions to benefit from advancements in technology.

Nilekani pointed out the government’s upcoming initiative, the ‘Open Agri Network,’ which will leverage AI to provide real-time agricultural insights to farmers. This initiative is expected to revolutionize the agricultural sector by helping farmers make more informed decisions, improving productivity, and driving rural economic growth. By integrating AI into such crucial sectors, India can enhance efficiency and improve the quality of life for millions.

One of the major catalysts for this transformation, Nilekani explained, is the growing access to affordable smartphones. “This is a big unlock where we use technology, DPI (Digital Public Infrastructure), and AI to reach a billion Indians,” he said, emphasizing the role of smartphones in democratizing technology access across the country. With more than 500 million smartphone users in India, the country is poised to leverage mobile technology to bring AI solutions to a broad audience, particularly in rural and underserved areas.
Nilekani also addressed the return of Indian startups to the domestic market. He noted that the current environment presents an ideal opportunity for more initial public offerings (IPOs) and rapid expansion of Indian startups. Successful founders, according to Nilekani, are reinvesting in the next generation of entrepreneurs, thus fostering a self-sustaining startup ecosystem that will drive innovation and job creation across the nation.

He highlighted the rapid growth of India’s startup ecosystem, noting that while the Indian economy is growing at an 8 percent annual rate, the number of startups is expected to grow at a compounded annual growth rate (CAGR) of 20 percent, potentially reaching the 1-million mark within the next decade. This growth will be crucial for generating employment and fostering new industries, particularly in tech and innovation.

Bengaluru: The Karnataka government’s “work from home” advisory to contain the spread of the COVID-19 pandemic has turned India’s tech hub into a ghost town, with the bustling campuses of IT majors like Infosys deserted as thousands of their techies are missing in action since Monday. (Photo: IANS)

Nilekani also emphasized the importance of empowering India’s micro, small, and medium enterprises (MSMEs). He suggested that the government and private sector work together to provide better access to technology, markets, and credit to the MSME sector. Enabling MSMEs to thrive will be vital for India’s economic growth and for ensuring that the benefits of the digital economy are distributed more evenly across the country.

In his address, Nilekani acknowledged the significant role that India’s digital public infrastructure (DPI), including Aadhaar and UPI, has played in the country’s technological leap over the past decade. With over 530 million WhatsApp users and a burgeoning number of smartphone users, India has built an unprecedented digital foundation that can support future technological advancements.
“There’s a need for India to go all-in on AI adoption, ensuring its benefits reach a billion people,” Nilekani stressed. For this to happen, he emphasized that key focus areas must include making AI accessible in Indian languages, and promoting its adoption in sectors like agriculture, health, education, and MSMEs.

As India continues to position itself as a global leader in digital innovation, Nilekani’s vision underscores the need for inclusivity, accessibility, and a collaborative effort between government, startups, and the private sector to ensure that AI drives sustainable economic growth for all.

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