Generative AI is set to transform India’s economy by boosting productivity more than displacing jobs, according to a Goldman Sachs report. The report estimates that AI will complement 42-48% of India’s non-agricultural workforce, while only 8-12% of jobs face substitution risk, pointing to augmentation rather than widespread job losses. In its baseline scenario, Gen-AI could lift India’s annual labour productivity growth by 0.4 percentage points, with the potential gains ranging from 0.1 to 0.8 percentage points. AI exposure is highest in knowledge-intensive services such as healthcare, education and financial services, while construction, mining and manufacturing remain relatively insulated due to their reliance on physical work.

Published on August 4, 2026