Advanced International Journal of Multidisciplinary Research

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AI and Economic Divergence in India: Navigating the Viksit Bharat 2047 Ambition in an Age of Uneven Technological Transition

Author(s) Dr. Yamuna Kilaru, Dr. G. Steeven Raju
Country India
Abstract India has set itself the dual ambition of becoming the world's third-largest economy in the near term and an advanced, high-income economy by 2047 under the Viksit Bharat 2047 vision. Artificial intelligence (AI) is widely presented, as a decisive lever for accelerating this transition all over the world and also in India. A recent International Monetary Fund working paper, Natasha X. Che, Weining Xin, and Taichi Yoshida (2026), develops a small open economy overlapping generations model of endogenous AI adoption for fifteen Asia-Pacific economies. It shows that AI could simultaneously widen growth gaps across countries and inequality within them. Capital-deepening, skill-biased technological change, and global interest-rate spillovers are the main drivers for growth gaps. This article applies the framework to India’s situation. India has a large and young workforce that is still developing. It also has less capital-intensive and skill-based production. Its growth depends mainly on its large workforce and the benefits of its demographic dividend, rather than on capital income . It argues that, absent an acceleration of structural reform along the lines the IMF paper's simulations suggest, India risks a transition period in which rising global capital costs generated by early AI adopters elsewhere in Asia constrain investment and growth at precisely the moment India needs both to be rising, while domestic AI diffusion could widen wage and generational disparities that cut against the inclusive-growth premise of Viksit Bharat 2047. The article closes with policy priorities specific to India's institutional endowments, including its digital public infrastructure, skilling architecture, and fiscal constraints.
Keywords Artificial Intelligence; Economic Divergence; India; Viksit Bharat 2047; Structural Reform; Inequality; Demographic Dividend; Asia-Pacific
Discipline Sociology > Commerce / Economics
Published In Volume 4, Issue 4, July-August 2026
Published On 2026-08-29
DOI https://doi.org/10.62127/aijmr.2026.v04i04.1495
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