India could see strong productivity gains from artificial intelligence over the next decade, Infosys co-founder Nandan Nilekani said Thursday at the India Policy Forum in New Delhi. He emphasized that applied AI represents India’s biggest opportunity, not cutting-edge hardware or large language models.
“It’s in the area of applied AI that India will become a leader,” Nilekani said, according to sources. He argued that India could become the “AI use case capital of the world” by deploying practical AI solutions to everyday problems in sectors such as healthcare, education, agriculture and financial services.
Nilekani noted that India’s existing digital public infrastructure—including Aadhaar and UPI—provides a strong foundation to deliver AI tools to millions of people across the country, including those in remote areas.
However, he also raised concerns about AI’s impact on employment, particularly in large organizations. “Large companies will probably be net job losers in the coming years,” he warned, as routine tasks become automated. Small businesses, he suggested, could become the primary engine for job creation in an AI-driven economy.
To fully realize the benefits of AI, Nilekani stressed the need for improved skills training, broader digital access, and reliable systems. Wider adoption, he said, could turn AI-driven productivity into stronger economic growth and greater inclusion for all Indians.