Unlocking India’s $8 Trillion Future: Nandan Nilekani’s 4 Key Growth Drivers for 8% GDP Growth
Nandan Nilekani, Infosys co-founder, outlined four key factors—technology, capital, entrepreneurship, and formalization—to drive India’s GDP growth from 6% to 8% and expand the economy to $8 trillion by 2035. Speaking at the Arkam Annual Meet 2025, he highlighted eight recommendations to achieve this, including AI adoption in agriculture, health, education, and MSMEs. He emphasized the need for AI solutions tailored to India’s linguistic diversity and access to affordable smartphones for the next billion users.
Nilekani also discussed capital growth, citing the return of Indian startups and strong venture funding. He forecasted India could have a million startups by 2035, with many emerging from smaller towns. To support entrepreneurship, he called for regulatory reforms and a more formalized workforce, particularly with the rise of Gen Z. Simplifying compliance and reducing bureaucratic hurdles were seen as key to unlocking growth.
Unlocking India’s $8 Trillion Future: Nandan Nilekani’s 4 Key Growth Drivers for 8% GDP Growth
At the Arkam Annual Meet 2025, Nandan Nilekani, co-founder of Infosys and a key architect of India’s Aadhaar initiative, outlined a strategic roadmap to propel India’s GDP growth from 6% to 8%, aiming to transform the nation into an $8 trillion economy by 2035. Emphasizing the interplay of technology, capital, entrepreneurship, and formalization, Nilekani presented actionable recommendations to harness these pillars for accelerated economic progress.
Technology-Driven Transformation
Nilekani underscored artificial intelligence (AI) as a critical lever for growth, urging its adoption across agriculture, healthcare, education, and micro, small, and medium enterprises (MSMEs). He argued that expanding AI integration in these sectors could unlock untapped economic value by enhancing productivity and decision-making. For instance, he highlighted the Open Agri Network, an AI-powered platform designed to provide farmers with real-time insights on weather, crop prices, and soil health, thereby optimizing agricultural outcomes. To democratize access, he stressed the importance of developing multilingual AI tools tailored to India’s linguistic diversity, ensuring that solutions reach non-English-speaking populations.
Additionally, Nilekani advocated for affordable internet access, proposing a shift from outdated 2G/3G networks to advanced connectivity. By phasing out legacy systems and promoting affordable smartphones, he envisions bridging the digital divide, enabling a billion Indians to participate in an AI-driven digital economy.
Mobilizing Capital and Infrastructure
The maturation of the venture capital ecosystem, according to Nilekani, positions India as a global hub for innovation. He noted the trend of startups returning to India from overseas, coupled with rising investments from angel networks and family offices, signaling robust confidence in the domestic market. He projected India to emerge as a leading destination for initial public offerings (IPOs) in the coming decade, attracting global investors.
To address infrastructure financing gaps, Nilekani proposed innovative mechanisms such as land tokenization—converting physical land assets into digital tokens—to unlock capital for development projects. He also called for streamlining regulations to reduce bureaucratic hurdles, enabling faster project execution and fostering public-private partnerships.
Entrepreneurship Beyond Metros
Nilekani predicted a surge in entrepreneurship, with India potentially hosting a million startups by 2035. He emphasized the rise of grassroots innovation, with ventures sprouting in smaller cities and rural areas to address localized challenges. This decentralization, he argued, will drive inclusive growth and job creation. To support this wave, he urged regulatory reforms to simplify compliance processes, reducing the administrative burden on small businesses. Nilekani also highlighted the need for skill development programs to prepare India’s Gen Z workforce for formal employment, ensuring alignment with the demands of a digitized economy.
Formalization and Inclusive Growth
A key theme in Nilekani’s address was the transition from informal to formal economic structures. By digitizing processes and expanding digital public infrastructure—such as Aadhaar and UPI—he believes India can integrate marginalized segments into the mainstream economy. Formalization, he noted, enhances transparency, improves access to credit, and strengthens social security networks.
Roadmap to $8 Trillion
Nilekani’s blueprint hinges on synergizing technology with policy innovation. For instance, simplifying business registration and tax procedures could spur entrepreneurial activity, while AI-driven solutions in healthcare and education could improve service delivery at scale. He also emphasized sustainable urbanization, advocating for smarter city planning to accommodate India’s growing urban population.
In conclusion, Nilekani expressed optimism about India’s potential to achieve 8% growth, provided stakeholders collaborate to implement these reforms. By leveraging its demographic dividend, digital infrastructure, and entrepreneurial spirit, India could not only reach its economic targets but also emerge as a global model for equitable, tech-enabled development. The convergence of these strategies, he asserted, will be pivotal in transitioning India from a $3.5 trillion economy to an $8 trillion powerhouse by 2035.
