Will India’s AI market surge to $17 billion with 1.25 million professionals by 2027?

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Will India’s AI market surge to $17 billion with 1.25 million professionals by 2027?

Synopsis

India's AI market is forecasted to grow significantly, reaching $17 billion by 2027. With an expected workforce of 1.25 million professionals, this growth reflects a robust transformation in the country's digital landscape. Discover how India's investment and infrastructure are paving the way for a revolutionary AI ecosystem.

Key Takeaways

  • India's AI market is set to reach $17 billion by 2027.
  • Expected growth in AI professionals to 1.25 million.
  • Strong digital infrastructure supports AI innovation.
  • Over 2,000 AI startups launched in three years.
  • AI is essential for competitive growth in business.

Bengaluru, June 11 (NationPress) India’s artificial intelligence (AI) sector is anticipated to expand threefold, reaching $17 billion by 2027, marking its position as one of the most rapidly growing AI economies worldwide, according to a report released on Wednesday.

Artificial Intelligence is transcending beyond mere pilots and proof-of-concept phases; it is transforming the competitive landscape for Indian enterprises. Currently, India holds 16 percent of the global AI talent pool, second only to the United States.

The report from Boston Consulting Group (BCG) examined the transition of Indian businesses from experimentation to tangible value generation.

According to the findings, “India’s domestic AI market is backed by a robust ecosystem of 600,000 professionals today, projected to grow to 1.25 million by 2027.”

The foundation for this growth includes public digital infrastructure such as Aadhaar, UPI, and ONDC, alongside increasing investment from enterprises, creating an environment ripe for scalable AI innovations.

Key factors driving this growth include a substantial data scale with over 700 million internet users, ongoing infrastructure development, and a rise in AI startups, with 2,000 launched in the last three years.

The report also provides a strategic roadmap for companies aiming to enhance their AI capabilities.

“AI is not merely an option; it has become a business necessity. Indian companies are leveraging it to surpass traditional growth trajectories and compete effectively on the global front,” stated Mandeep Kohli, Managing Director and Partner at BCG India.

Although the challenges for successful implementation are considerable, the potential benefits are even greater, with results that validate the investment.

“What distinguishes the leaders is not solely the technology but their adeptness in managing change, developing talent, and integrating AI into their organizational framework,” added Kohli.

“AI is not an ancillary project — it is the next engine of growth. Organizations that act decisively, invest in scalable data and talent infrastructures, and collaborate across the ecosystem will shape the next decade of growth for both their companies and India,” the report emphasized.

Point of View

It is imperative to recognize the transformative impact of AI on India's economy. This growth is not just about numbers; it represents a shift in how businesses operate and compete. India stands at the forefront of AI innovation, and with the right investments and strategies, it can continue to lead in this vital sector.
NationPress
13/06/2025

Frequently Asked Questions

What is the projected market size of AI in India by 2027?
India's AI market is projected to reach $17 billion by 2027.
How many AI professionals are expected in India by 2027?
The workforce in India's AI sector is expected to grow to 1.25 million professionals by 2027.
What role does digital infrastructure play in AI growth?
Public digital infrastructure like Aadhaar and UPI has created a conducive environment for scalable AI innovation.
How many AI startups have launched in India recently?
Approximately 2,000 AI startups have been launched in India over the past three years.
What is the significance of AI for Indian companies?
AI is becoming a business necessity for Indian companies, helping them to compete effectively on a global scale.