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India's AI Market Set to Triple to $17 Billion by 2027

Wednesday, 11 June 2025, 12:48 IST
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  • India’s AI market is projected to reach $17 billion by 2027, tripling in size and making it one of the fastest-growing AI economies globally.
  • India holds 16% of the global AI talent pool, supported by over 600,000 professionals, expected to grow to 1.25 million by 2027.
  • Public digital infrastructure and over 2,000 AI startups have created fertile ground for scalable AI innovation across sectors.

India’s artificial intelligence (AI) market is on a rapid growth trajectory, projected to triple to $17 billion by 2027, positioning the country among the fastest-growing AI economies globally, according to a new report by Boston Consulting Group (BCG).

The report highlights that AI is no longer limited to pilot projects or proof-of-concepts but is now central to how Indian businesses scale and compete. India currently holds 16 per cent of the global AI talent pool, second only to the United States, with its domestic AI ecosystem supported by over 600,000 professionals a figure expected to double to 1.25 million by 2027.

India's robust public digital infrastructure including Aadhaar, UPI, and the Open Network for Digital Commerce (ONDC) combined with surging enterprise investments, has laid a strong foundation for scalable AI innovation. The country’s data scale, with over 700 million internet users, growing digital infrastructure, and the emergence of more than 2,000 AI startups in the past three years, further fuels this momentum.

"AI is no longer an option but a business necessity”, said Mandeep Kohli, Managing Director and Partner at BCG India. Indian companies are using it to leapfrog traditional growth curves and compete confidently on the global stage.

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The report offers a clear roadmap for Indian enterprises seeking to scale AI from investing in talent and data infrastructure to embedding AI into core operations and building ecosystem partnerships.

“What separates leaders is not just the tech, but how they manage change and build capabilities”, Kohli added.

With rising investments and strategic implementation, AI is becoming a core growth engine. BCG concludes that bold, future-ready enterprises that act now will shape the next decade of India’s AI-led economic expansion.