tl;dr
India's artificial intelligence market is projected to more than triple to $17 billion by 2027, making it one of the fastest-growing AI economies globally. This growth is driven by increased enterprise technology investments, robust digital infrastructure, and a large talent pool of 600,000 AI profe...
India's artificial intelligence market is on a rapid growth trajectory, projected to triple to $17 billion by 2027. This surge is fueled by substantial enterprise technology investments, a robust digital infrastructure, and a growing talent pool of approximately 600,000 AI professionals, representing 16% of the global AI workforce, second only to the United States.
Leading Indian companies are embedding AI into their core operations, expanding market opportunities by 1.2 to 1.5 times across various sectors while achieving significant efficiency gains. Financial services are cutting processing times by up to 70%, enabling faster underwriting and micro-lending expansion. Retailers are seeing conversion rate improvements between 10% and 15% through AI-driven personalization, while media firms reduce production costs by over 80% and speed up content creation by 70%.
India boasts over 4,500 AI startups, 40% of which have emerged within the last three years, tackling local challenges from rural healthcare to vernacular education. AI is empowering startups to innovate rapidly without extensive teams. However, scaling these ventures requires enhanced partnerships, greater access to computing resources, and the development of a talent pipeline extending beyond major metropolitan areas.
The Indian government is actively supporting this expansion through the IndiaAI mission, investing ₹10,000 crore in national AI compute capacity, including over 10,000 GPUs dedicated to model training. This initiative aims to bolster industry growth and foster innovation, positioning India as one of the fastest-growing AI economies worldwide.