India’s artificial intelligence (AI) market is poised to skyrocket to $17 billion by 2027, propelled by a robust annualized growth rate of 25-35% between 2024 and 2027, according to a joint report by IT industry body Nasscom and consulting firm BCG. The report, which delves into the landscape of AI-powered technology in the country, highlights key factors driving this significant expansion.
Anticipated growth in enterprise tech spending, an expanding AI talent pool, and increased investments in AI infrastructure are cited as primary drivers of this remarkable surge, Nasscom and BCG noted in a statement preceding the report’s release on Wednesday.
The report reveals that India currently boasts over 420,000 employees engaged in AI job functions, underscoring the nation’s robust skills penetration in the AI domain. This wealth of talent positions India as a global leader in AI expertise.
Conducted through a survey encompassing more than 65 respondents from larger-tech and mid-tech companies, as well as entities in the business process management sector and global capability centers, the report offers insights gleaned from industry stakeholders.
This announcement comes at a time when IT companies are channeling substantial budgets towards employee training initiatives, startup investments, and bolstering capabilities in emerging technologies. Notably, last year, Wipro announced a $1 billion investment in AI over a three-year period, signaling a concerted industry-wide push towards AI advancement.
With AI investments on the rise, the demand for AI talent in India is expected to surge at an annualized rate of 15% until 2027, the report predicts. A staggering 90% of the top 25 technology service providers have committed to large-scale skilling initiatives targeting Generation AI, further underlining the industry’s commitment to nurturing a skilled workforce capable of driving AI innovation.
The forecasted growth trajectory of India’s AI market underscores the nation’s pivotal role in shaping the global AI landscape. As businesses across sectors increasingly integrate AI technologies into their operations, India stands poised to harness the transformative potential of AI to drive innovation, efficiency, and economic growth in the years ahead.
