Is India’s AI tech spending set to hit $10.4 billion by 2028?
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Synopsis
India is gearing up for a significant leap in AI technology spending, projected to reach $10.4 billion by 2028. This growth is fueled by a tech-savvy workforce and strong government support. As organizations embrace agentic AI, they enhance productivity and decision-making, making AI adoption a strategic necessity in today’s fast-paced business environment.
Key Takeaways
- India's AI spending set to reach $10.4 billion by 2028.
- Annual growth rate of 38 percent projected.
- 40% of organizations have adopted agentic AI.
- AI enhances productivity for 80 percent of companies.
- Significant adoption in sectors reliant on data and repetitive tasks.
New Delhi, Aug 7 (NationPress) India’s expenditure on AI technology is anticipated to escalate at a remarkable annual growth rate of 38 percent from 2023, aiming to hit $10.4 billion by the year 2028, according to a report released on Thursday.
Approximately 40 percent of businesses in India have already adopted agentic AI, while nearly 50 percent plan to integrate the technology within the upcoming 12 months, as outlined in a joint report by IDC InfoBrief and UiPath.
By 2025, AI investments will primarily focus on establishing the core infrastructure necessary for enabling transformative, high-value applications.
The report highlights that the rapid adoption of AI is being driven by a tech-savvy workforce, an expanding digital ecosystem, and strong government initiatives.
Spending by organizations on enterprise automation, multilingual AI frameworks, and agentic deployments is further propelling this growth.
Significant benefits are already being observed, with 80 percent of Indian firms reporting that agentic AI enhances productivity, while 73 percent believe it improves decision-making, according to the report.
Agentic AI is particularly gaining momentum in sectors like manufacturing, retail and wholesale, healthcare, and life sciences, which are heavily dependent on data and repetitive decision-making processes.
“Agentic automation is swiftly transforming business operations throughout India. As enterprises in this region harness the full potential of AI agents to streamline workflows and autonomously handle complex business tasks, challenges regarding trust and security continue to hinder widespread adoption,” stated DebDeep Sengupta, Area Vice President, South Asia, UiPath.
He further emphasized that their agentic automation platform effectively addresses these hurdles, enhancing security and compliance while improving accuracy and reliability in agentic outcomes.
About 69 percent of Indian organizations are leveraging agentic AI for boosting productivity, 59 percent for elevating personalized customer engagement, and 57 percent for detecting risks and fraud, demonstrating the diverse applications of agentic AI across both front and back-office operations, as noted in the report.
“In today’s unpredictable landscape, becoming an AI-driven enterprise is no longer optional; for many, it is rapidly evolving into a strategic necessity,” remarked Deepika Giri, Associate Vice President, IDC Asia/Pacific.
Across the region, organizations are increasingly adopting agentic AI and agentic automation on a large scale, Giri added.
Point of View
It’s clear that India is on the verge of a significant technological transformation. The projected growth in AI spending reflects an urgent need for businesses to adapt in an increasingly competitive environment. Embracing AI is not merely a trend; it is an essential strategy for sustainability and success in the modern landscape.
NationPress
19/08/2025
Frequently Asked Questions
What is the projected AI technology spending in India by 2028?
India's AI technology spending is projected to reach $10.4 billion by 2028, growing at an annualized rate of 38 percent.
How many organizations in India have adopted agentic AI?
Approximately 40 percent of organizations in India have already implemented agentic AI.
What sectors are benefiting from agentic AI?
Agentic AI is gaining traction in sectors such as manufacturing, retail, healthcare, and life sciences.
What are the benefits of adopting agentic AI?
Organizations report enhanced productivity, improved decision-making, and better customer engagement as key benefits of adopting agentic AI.
What challenges do businesses face in AI adoption?
Trust and security remain significant barriers to the widespread implementation of AI technologies.
