India's artificial intelligence (AI) market set to triple, may cross Rs. 1,45,384 crore (US$ 17 billion) by 2027: Report

India’s artificial intelligence (AI) market is projected to grow over threefold to surpass Rs. 1,45,384 crore (US$ 17 billion) by 2027, positioning the country among the fastest-growing AI economies globally, according to a Boston Consulting Group (BCG) report titled "India's AI Leap: BCG Perspective on Emerging Challengers." The growth is being fuelled by increasing investments in enterprise technology, a flourishing digital ecosystem, and India’s substantial base of skilled professionals. With over 6,00,000 AI professionals and 700 million internet users, India contributes 16% of the global AI talent pool, second only to the United States (US), underscoring its demographic advantage and strong Science, Technology, Engineering, and Mathematics (STEM) education system.
India’s AI readiness is further strengthened by scalable public digital infrastructure such as Aadhaar, Unified Payments Interface (UPI), DigiLocker, and the Open Network for Digital Commerce (ONDC). These platforms, coupled with widespread smartphone use, are enabling data-rich environments essential for AI model training. India is expected to commission 45 new data centres in 2025, adding 1,015 megawatts (MW) of capacity to its existing 152 centre network. The government’s IndiaAI initiative, backed by a Rs. 10,000 crore (US$ 1.17 billion) corpus, aims to create a national AI compute infrastructure, offering access to over 10,000 graphics processing units (GPUs) for training and research. BCG’s Managing Director and Partner, Mr. Mandeep Kohli, noted that AI is now a strategic imperative for Indian businesses, and success will depend not only on technology adoption but also on how companies manage organisational change, talent, and AI integration at scale.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.