New Delhi, October 12 (Daily Kiran) : India is positioning itself as a major global economic center, overcoming developmental hurdles amid shifting capital flows and the increasing impact of artificial intelligence (AI). This was highlighted in a report released by Bloomberg Economics on October 12, 2026.
The report emphasizes that global capital flows, trade relationships, and industrial structures are rapidly evolving. The AI revolution is underway, with the expansion of free trade agreements (FTAs) creating new export opportunities, while urbanization continues to accelerate.
Tom Orlik, Chief Economist at Bloomberg Economics, noted that India is moving towards playing a significant role in the global landscape by reducing various barriers to growth.
According to the report, India’s expanding network of free trade could contribute an additional $140 billion to $170 billion to the country’s GDP by 2035. Domestic reforms aimed at lowering manufacturing costs and transitioning agricultural workers to more productive sectors could further enhance these benefits.
The report also states that global capital flows are becoming more concentrated and politically driven. Investments between rival nations are approximately 40% lower compared to those among allied countries, with a significant portion now directed towards sectors like AI and semiconductors.
A key challenge for India will be to maintain its momentum in attracting global capital in the face of strong demand from the U.S. tech sector and investment incentives offered by various countries.
Furthermore, the report indicates that AI could boost India’s economic growth rate by up to 0.9% annually. This could be crucial in helping Prime Minister Narendra Modi achieve his goal of transforming India into a developed nation by 2047.
However, the report also cautions that infrastructure limitations may somewhat restrict the benefits derived from AI. Particularly, India’s IT services sector is expected to face both opportunities and challenges. While AI could lead companies toward higher-value services, automation might threaten low-cost labor models.
Urbanization is highlighted as a significant strength for India, with approximately 820 million people living in urban areas. Strengthening urban administration, infrastructure, and land-use planning could turn this urban population into a major source of productivity growth.
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