Page 30 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

8. India emerges as a global leader in workplace AI Adoption

India has emerged as a global leader in workplace artificial intelligence (AI) adoption, reflecting the
country’s rapidly evolving digital and technology ecosystem. According to the latest People at Work
2026 report by ADP Research, around 80 % of Indian employees use AI tools multiple times a week, while
41 % use AI nearly every day — the highest levels recorded among all surveyed economies.

The report highlighted that AI adoption in India is being driven by increasing digitalization, expansion of
technology-enabled services, and growing integration of AI across manufacturing, engineering, IT, and
business operations. Indian firms are increasingly leveraging AI not only for automation and cost
reduction, but also for improving productivity, innovation, and decision-making processes.

The growing adoption of AI is also reshaping India’s industrial and employment landscape. According to
industry reports, manufacturers are increasingly using AI-enabled systems to strengthen supply chain
management, operational efficiency, predictive maintenance, and industrial automation. AI-driven
investments are also supporting the expansion of Global Capability Centres (GCCs) and advanced
engineering activities in India.

At the policy level, India has continued to strengthen its AI ecosystem through initiatives such as the
IndiaAI Mission and the India AI Impact Summit 2026. The government announced plans to expand
domestic AI computing infrastructure, including the addition of over 20,000 GPUs under the IndiaAI
Compute Portal, while Indian AI firms such as Sarvam AI unveiled indigenous large language models and
AI applications focused on Indian languages and enterprise use cases.

Despite rapid adoption, the report also highlighted emerging challenges. While frequent AI users reported
higher workplace engagement and lower stress levels, many employees also expressed concerns
regarding productivity measurement, evolving job roles, and long-term employment implications in an AI-
driven workplace.

9. ADB Projects India’s GDP Growth at 6.9% in FY2026

The Asian Development Bank (ADB), in its Asian Development Outlook (ADO) April 2026, projected India’s
GDP growth to moderate to 6.9 % in FY2026 from 7.6 % in FY2025, while remaining among the fastest-
growing major economies globally. The ADB expects growth to accelerate further to 7.3 % in FY2027,
supported by strong domestic demand, easing financing conditions, infrastructure investment, and
structural reforms.

The report highlighted that India’s economic growth continues to be driven primarily by robust domestic
consumption and investment activity despite a challenging global environment marked by slowing global
growth, elevated energy prices, and geopolitical uncertainty. Lower US tariffs on Indian goods and
progress in trade agreements, particularly with the European Union, are also expected to support exports
and industrial activity.

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