India’s AI Market Projected to Triple to $17 Billion by 2027: Report

India’s artificial intelligence (AI) market is expected to grow to over $17 billion by 2027, more than tripling its current size. This projection comes from a report by Boston Consulting Group (BCG), which outlines how enterprise adoption, digital infrastructure, and a growing talent base are contributing to the sector’s expansion.

Talent Pool and Workforce Growth

India currently accounts for 16% of the world’s AI talent, second only to the United States. As per the BCG report, the country has over 600,000 AI professionals, and is projected to reach approximately 1.25 million in the next 2 years, 700 million internet users, and a surge of AI startups, with over 2000 launched in the past three years. The talent pool is supported by India’s science and engineering education systems.

Digital Infrastructure and Data Volume

India’s public digital systems, such as Aadhaar, Unified Payments Interface (UPI), DigiLocker, and the Open Network for Digital Commerce (ONDC) are being used across sectors to support AI-based applications. With around 700 million internet users and high smartphone penetration, the country generates large volumes of data, which is a key resource for training AI models.

Startup Activity

Over 2,000 AI startups have been launched in India over the last 3 years. These companies operate across areas like fintech, edtech, real estate, and media. The startup environment is being driven by access to data, cloud infrastructure, and increased enterprise demand for automation and analytics.

Read more: India’s AI Sector Poised to Surpass 2.3 Million Job Openings by 2027: Report!

Data Centre Expansion and Policy Support

India is expected to add 45 new data centres in 2025, contributing an additional 1,015 MW of capacity to its existing network of 152 centres. The IndiaAI initiative, announced by the government with a budget of over ₹10,000 crore, will provide access to more than 10,000 GPUs for AI model training and research.

Conclusion

India’s AI market is scaling through a mix of workforce development, infrastructure projects, and government-led programs. The expected market value of over $17 billion by 2027 reflects broader changes underway in the country’s digital and technology sectors.

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