GenAI a $10 trillion GDP Booster: RBI Dy Guv Patra

Mumbai: Generative artificial intelligence (GenAI) could boost global gross domestic product (GDP) by $7 trillion-$10 trillion over the next three years and add $359 billion-$438 billion to India's GDP by 2029-30, Reserve Bank of India (RBI) deputy governor Michael Patra said on Wednesday.

"It is estimated that the digital economy currently accounts for a tenth of India's GDP; going by growth rates observed over the past decade, it is poised to constitute a fifth of GDP by 2026," he said at an event in Jaipur.

He acknowledged that rapid digitalisation and the integration of advanced technologies could pose several challenges. "New technologies also involve challenges: disruptions in respect of traditional technologies and the labour market; resource intensity, demanding substantial investment in technology, learning and infrastructure; potential cyber threats and data breaches; ethical concerns, data privacy and potential malicious use," he said.


Patra further said that large language models are estimated to increase the productivity levels of workers by 8-36%

He said the RBI has five policy priorities - digital financial inclusion, digital public infrastructure, customer protection and cybersecurity, sustainable finance, and global integration and cooperation.

Although digital finance tools improve accessibility, they could introduce new risks to financial stability if not carefully regulated, he indicated.

Patra referred to the upcoming Unified Lending Interface platform as a transformative tool for lending, saying it would simplify loan access for underserved populations, small businesses and rural borrowers.