India ranks 11th in Commonwealth AI readiness index; AI could add $79 billion to GDP

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AI adoption in India could transform the economy, but challenges in youth employment and access persist.

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India ranks 11th among 56 Commonwealth countries in a new study on youth preparedness for artificial intelligence (AI), with the technology offering a potential $79.1 billion boost to the country's GDP over the next decade. The Ayre Index: The 2026 Commonwealth Youth AI Readiness Index gives India a score of 60.6 out of 100, above the study's readiness benchmark of 53. The index was launched at the Commonwealth Heads of Government Meeting in Antigua and Barbuda. Of the 56 countries assessed, only 15 met or exceeded the benchmark.

India's position is particularly significant given its young population. The study estimates that around 382 million Indians are between 15 and 29 years old, accounting for more than half of the Commonwealth's 732 million young people. The research, conducted by the Ayre Think Tank, draws on 1,128 sources, including official statistics, international databases and surveys. Singapore topped the rankings with a score of 77.6, followed by Malta at 75 and Australia at 71. India was ahead of Fiji, South Africa and Nigeria.

The survey also points to growing interest in AI among young Indians. As many as 88.8% of respondents said they expected to use AI for education or work within the following year. Further, 60.1% said they were confident about controlling their interactions with the technology. However, access to devices remains a concern. Despite widespread 4G coverage and relatively inexpensive mobile data, only 66.5% of young people surveyed owned a mobile phone.

AI could add $79 billion to India's GDP over 10 years

The economic opportunity is considerable. The study estimates that AI could lift India's GDP level by $79.121 billion after 10 years under its moderate scenario. The figure could range from $39.561 billion in the conservative scenario to $118.682 billion in the optimistic scenario. These are scenario-based estimates calculated using the International Monetary Fund's projections of AI's potential economic impact across broad economic groups. They are not annual GDP additions or guaranteed growth figures.

But the study also flags a significant employment challenge. Around 30.4% of young people in India are not in employment, education or training, while 85.8% of young workers are employed in the informal sector. This raises questions about how effectively the country can translate AI adoption into better job opportunities for its young population. India has already begun addressing the skills gap. In August 2026, Prime Minister Narendra Modi announced a target to train 10 million young people in AI skills within a year. The following month, the government launched AI training programmes in partnership with Intel India.

Calvin Ayre, founder of the Ayre Think Tank, said the benefits of AI would depend on whether young people had the skills and opportunities to participate in the changing economy. "I've spent my life in businesses where new technology changes everything, and I know you can't stand still. AI is going to change how we work, how we do business and how wealth is created," he said.

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The report recommends five priorities for governments: making technology more affordable, improving practical AI education, creating pathways from training to jobs, developing tools suited to local languages and needs, and putting safeguards in place so young people can question decisions made by AI systems.

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