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VOL. 12, ISSUE 1 (2026)
The emergence and economic impact of data science and artificial intelligence in a developing economy: evidence from India
Authors
Dr. Amar Singh Rathore, Dr. Abhishek Jain
Abstract
The rapid advancement of Data Science and
Artificial Intelligence (AI) has emerged as a transformative force reshaping
economy worldwide, with particularly significant implications for developing
nations such as India. This study examines the multifaceted role of AI and Data
Science in driving India's economic growth, innovation, and productivity across
key sectors including agriculture, healthcare, financial services, governance,
education, and manufacturing. Adopting a mixed-method research approach, the study
integrates secondary data analysis, sectoral evaluation, econometric
assessment, and policy review to assess the economic impact of AI-driven
technologies on GDP growth, employment generation, productivity enhancement,
cost reduction, and market expansion. The findings indicate that AI and Data
Science significantly enhance operational efficiency, enable data-driven
decision-making, foster financial inclusion, improve public service delivery,
and stimulate innovation-led growth. Government initiatives such as Digital
India, AI for All, and the National AI Strategy have further accelerated
adoption, positioning AI as a strategic enabler of India's aspiration to become
a $5 trillion economy. However, challenges related to the digital divide, data
privacy, ethical governance, and skill shortages remain critical constraints.
The study underscores the need for coordinated policy interventions, sustained
investments in digital infrastructure and human capital, and robust ethical
frameworks to ensure inclusive and sustainable AI adoption. Overall, the paper
concludes that AI and Data Science represent a strategic imperative for India's
long-term economic development and global competitiveness.
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Pages:199-208
How to cite this article:
Dr. Amar Singh Rathore, Dr. Abhishek Jain "The emergence and economic impact of data science and artificial intelligence in a developing economy: evidence from India". International Journal of Commerce and Management Research, Vol 12, Issue 1, 2026, Pages 199-208
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