India’s AI Market to Triple by 2027, Says BCG Report
India is witnessing one of the fastest growth trajectories in artificial intelligence (AI) adoption compared to other nations, according to a new report released by Boston Consulting Group (BCG).
India is witnessing one of the fastest growth trajectories in artificial intelligence (AI) adoption compared to other nations, according to a new report released by Boston Consulting Group (BCG). Driven by increasing enterprise tech investments, rapid digital penetration, and a large pool of skilled AI professionals, India’s AI market is projected to reach $17 billion (₹1.45 lakh crore) by 2027, tripling its current size.
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India Holds 16% of Global AI Talent
BCG’s report highlights that India commands a significant 16% share of the global AI talent pool, second only to the United States. With more than 600,000 AI-skilled professionals, India’s robust STEM education system and vast population have positioned it as a leading hub for AI expertise.
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In addition to the skilled workforce, India boasts over 700 million internet users and more than 2,000 AI startups launched in the past three years, creating a thriving AI ecosystem. This strong foundation makes India well poised to become one of the fastest-growing AI economies globally by 2027.
Public Digital Infrastructure Fueling AI Growth
India’s well-established public digital infrastructure — including Aadhaar, UPI, DigiLocker, and ONDC — is playing a crucial role in boosting AI adoption across sectors. The widespread use of smartphones is generating enormous amounts of data, serving as critical fuel for training AI models.
Surge in Data Center Capacity
In 2024 alone, India is expected to add 45 new data centers, increasing the total number of data centers to 152 with a combined capacity of 1,015 megawatts. This growing data center infrastructure will support the rising demand for AI computing power.
National AI Compute Infrastructure with ₹10,000 Crore Investment
The Indian government has also launched the IndiaAI initiative, backed by a capital investment of ₹10,000 crore. Under this program, the country will establish a National AI Compute Infrastructure, providing access to more than 10,000 GPUs for AI model training and research purposes. According to BCG, this will significantly strengthen India’s AI capabilities and foster cutting-edge innovation.
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