India’s AI Boom: Market Set to Hit $17 Billion by 2027

India’s artificial intelligence market is on track to triple in value, reaching $17 billion by 2027, according to a report by Boston Consulting Group (BCG). The surge is driven by enterprise tech investments, a thriving digital ecosystem, and a rapidly expanding AI talent pool.

 

India currently has over 600,000 AI professionals, a number expected to double to 1.25 million by 2027. The country already accounts for 16% of the global AI talent pool, second only to the United States. This growth is fueled by public digital infrastructure, including Aadhaar, UPI, DigiLocker, and ONDC, which provide a scalable foundation for AI adoption.

 

The report highlights that AI is no longer just an experimental tool—Indian businesses are using it to drive efficiency, expand markets, and accelerate decision-making. The IndiaAI initiative, backed by a ₹10,000-crore investment, will establish national AI compute infrastructure, offering access to 10,000+ GPUs for model training and research.

 

India’s startup ecosystem is also thriving, with over 4,500 AI startups, 40% of which were launched in the last three years. These ventures are tackling health-tech, agri-tech, logistics, and fintech challenges, making India a global AI powerhouse.

With its talent, infrastructure, and policy support, India is poised to shape the future of AI on a global scale.

 

Sources: The Hindu BusinessLine, Economic Times, India Today