India’s Road to 8% Growth: Nilekani Bets on AI, Blockchain, Reforms

At the Raisina Dialogue 2025, Nandan Nilekani, Co-Founder and Chairman of Infosys, delivered a powerful call to action: India must embrace artificial intelligence (AI) on a massive scale to unlock its full economic potential. He argued that by deploying AI across vital sectors like education, healthcare, and language accessibility, India could accelerate its economic growth rate to 8%.

"India's strength has always been in deploying technology at a population scale," Nilekani stated. "We now need to apply AI the same way — at scale, affordably, and with accessibility for all."

Nilekani highlighted that India's technological prowess — demonstrated through Aadhaar, UPI, and other digital infrastructure — positions the country uniquely to scale AI adoption. He envisions AI as a transformative tool to empower citizens, improve public services, and boost productivity across industries.

AI and Financial Reforms: Catalysts for Economic Growth

Nilekani underscored the critical role of financial inclusion, pointing to India’s Account Aggregator (AA) framework. This system allows individuals and businesses to securely share their financial data to access better credit and services. However, he noted that only 10% of personal loans currently utilize this system, leaving vast untapped potential.

"By expanding the reach of the Account Aggregator framework, we can democratize credit and enable millions of individuals and small businesses to participate more actively in the economy," Nilekani said.

He also addressed the untapped wealth locked in India’s land assets, which account for nearly 50% of the nation’s wealth but remain largely illiquid. Nilekani proposed using public blockchain technology to tokenize land, turning it into a tradable asset. This approach would allow landowners to sell portions of their land or use it as collateral for credit — a move that could significantly unlock economic potential.

"Unlocking the wealth tied up in land through financial innovation can spark a new wave of economic growth," he explained. "We must find ways to make these assets fungible and usable in the financial system."

Spreading Entrepreneurship Beyond Metro Hubs

Nilekani stressed the importance of expanding entrepreneurship beyond India’s major metropolitan cities. He emphasized that smaller cities and rural regions must also benefit from the digital economy’s rapid growth.

"Today, most startups and innovation clusters thrive in big cities. We must extend this entrepreneurial energy across the country to create a more balanced and inclusive economy," he urged.

Formalization and Deregulation: The Path to Turbocharged Growth

Pushing for economic reforms, Nilekani called for simplifying regulations, decriminalizing business laws, and ensuring legal frameworks are written in clear, accessible language.

"Even basic reforms can trigger a rapid formalization of the economy," he remarked. "India’s growth capacity already stands at 6%, but with strategic deregulation, we can push this to 8%."

Infrastructure and Digital Ecosystem: India’s Launchpad for Growth

Nilekani praised India’s advancements in infrastructure — from roads and ports to telecom and fintech — as pivotal to the country’s future economic success. He noted that mobile connectivity is empowering millions, especially in remote areas, to participate in the digital economy.

Raisina Dialogue: A Global Stage for India’s Vision

The Raisina Dialogue, hosted annually by the Observer Research Foundation alongside the Ministry of External Affairs, remains India’s premier platform for global policy discussions. It convenes leaders from politics, business, and civil society to tackle global challenges and foster international cooperation.

With technology at the forefront and bold reforms on the horizon, Nilekani envisions an India that not only sustains its digital revolution but accelerates toward inclusive, sustainable, and widespread economic prosperity.