AI driven productivity could expand India’s GDP: Cognizant

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The model also indicates a theoretical upper bound of $830 billion annually, assuming widespread adoption of AI across the entire workforce and full translation of productivity gains into economic output

By BL Chennai Bureau

Updated - November 03, 2026 at 01:56 PM.

Rajesh Varrier, President – Global Operations and Chairman & Managing Director, Cognizant India | Photo Credit: FRANCIS MASCARENHAS

AI-enabled productivity could contribute approximately $28 billion to $84 billion in additional annual nominal GDP, depending on the breadth of AI adoption and how effective productivity gains translate into economic output, according to new research from IT Major Cognizant. 

The model also indicates a theoretical upper bound of $830 billion annually, assuming widespread adoption of AI across the entire workforce and full translation of productivity gains into economic output.

The research is based on a survey of 700 enterprise employees and 75 C-suite and business executives across companies with revenues ranging from $100 million to over $10 billion across 10 major industries. 

97 per cent of employees surveyed report some productivity improvement from AI, with an average reported 15 per cent productivity uplift. Productivity gains varying across sectors. Healthcare leads, with 38 per cent of employees surveyed reporting productivity gains above 20 per cent, followed by communications (31 per cent), technology (28 per cent), banking (28 per cent), and retail and CPG (18 per cent). 

Despite the workforce productivity gains, 84 per cent of organisational leaders report that they have not yet seen AI lower costs, 91 per cent report no revenue impact, and 37 per cent have paused or stopped AI initiatives due to unclear ROI.

“India has a strong foundation to capture greater value from AI. Realising this potential will require adoption of AI tools across enterprises, continued investment in skilling, and an enabling environment for responsible AI at scale. Bringing these elements together will be critical to translating workforce productivity into measurable enterprise and economic value,” said Rajesh Varrier, President – Global Operations and Chairman & Managing Director, Cognizant India.

Published on November 3, 2026

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