India's AI Market Projected To Triple To USD 17 Bn By 2027: BCG Report

New Delhi, Jun 11 (KNN) India's artificial intelligence market is projected to expand significantly over the next three years, with new research indicating growth to more than USD 17 billion by 2027, representing a tripling of its current market size.

The growth trajectory positions India among the world's fastest-expanding AI economies, according to a comprehensive analysis by Boston Consulting Group.

The expansion is attributed to several key factors, including increased enterprise technology investments, a robust digital ecosystem, and access to a substantial pool of skilled professionals.

India currently accounts for 16 percent of global AI talent, ranking second only to the United States in this category, which reflects both the country's demographic advantages and the strength of its science, technology, engineering, and mathematics education infrastructure.

Boston Consulting Group's report, titled ‘India's AI Leap: BCG Perspective on Emerging Challengers,’ highlights the nation's comprehensive AI ecosystem, which encompasses more than 600,000 AI professionals and serves 700 million internet users.

The start-up landscape has experienced notable growth, with over 2,000 AI-focused companies launched within the past three years.

The foundation for AI development in India is strengthened by existing public digital infrastructure systems, including Aadhaar, the Unified Payments Interface, DigiLocker, and the Open Network for Digital Commerce.

These platforms provide scalable frameworks that facilitate AI integration across multiple industry sectors.

India's large internet user base and widespread smartphone adoption generate substantial data volumes, which serve as essential resources for training AI models.

This data scale, combined with open architecture systems, enables the creation of population-scale AI solutions across various economic sectors, according to the consulting firm's analysis.

Infrastructure development is also accelerating, with plans to add 45 new data centres in 2025, contributing an additional 1,015 megawatts of capacity to the existing network of 152 centres.

The government's IndiaAI initiative, supported by funding exceeding 10,000 crore rupees, aims to establish national AI computing infrastructure that will provide access to more than 10,000 graphics processing units for AI model training and research purposes.

Mandeep Kohli, Managing Director and Partner, BCG India, emphasised the strategic importance of AI adoption for Indian businesses.

The executive noted that artificial intelligence has transitioned from an optional technology to a business necessity, enabling Indian companies to accelerate growth patterns and enhance their competitive position in global markets.

Success in AI deployment, according to Kohli, depends not only on technological capabilities but also on effective change management, talent development, and organisational integration of AI systems.

(KNN Bureau)