India’s digital push could drive its AI market to $17 billion by 2027: Report
&imwidth=800&imheight=600&format=webp&quality=medium "India’s digital push could drive its AI market to $17 billion by 2027: Report")
India’s AI sector on track to triple to $17 billion by 2027 Photograph: (Pexels, Grok AI)
The report indicates that India is likely to become one of the fastest-growing AI economies globally.
India’s artificial intelligence (AI) market is projected to grow more than triple in value to $17 billion (Rs. 1,45,384 crore) by 2027, according to a Boston Consulting Group (BCG) report titled 'India’s AI Leap: BCG Perspective on Emerging Challengers'. The report indicates that India is likely to become one of the fastest-growing AI economies globally.
This growth is connected to the Indian enterprises shift from small-scale pilot projects to full-scale AI deployment across industries. The market expansion is also being driven by increased investment in enterprise technology, as well as a strong digital ecosystem in addition to a substantial base of skilled professionals.
Strength of workforce
India has over 600,000 AI professionals currently, with expectations for the numbers to reach 1.25 million by 2027. This represents 16 per cent of the global AI talent pool, hence placing India on the second place, next to the United States. The country’s strength in science, technology, engineering, and mathematics (STEM) education was cited as a key factor in this development.
The report said, "India is no exception—businesses across sectors are rapidly embracing AI to solve local challenges, scale innovation, and drive competitive advantage. AI is significantly expanding the total addressable market (TAM) by 1.2 to 1.5 times across key Indian sectors, while delivering unmatched efficiencies and speed.".
India's digital public infrastructure
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The report further notes that one of the significant foundations for AI adoption in India are provided by the country’s digital public infrastructure. These digital platforms including DigiLocker, Aadhaar, Unified Payments Interface (UPI), and the Open Network for Digital Commerce (ONDC) are enabling a scalable AI integration across various sectors.
With more than 700 million internet users in India and widespread smartphone penetration, the country also generates large volumes of data. This data becomes essential for training and improving AI models. AI's impact is increasingly evident across sectors such as finance, healthcare, media, retail, and real estate.
BCG's findings highlights the transition of AI in India, from an optional technology to a core business tool. AI is increasingly being adopted by companies to improve efficiency and remain competitive at a global level.
