India's AI market set to triple by 2027: USD 17 billion opportunity unfolds

India's artificial intelligence market is on track to surpass USD 17 billion by 2027, more than tripling its current valuation, according to a Boston Consulting Group (BCG) report.

This rapid growth is propelled by increased investments in enterprise technology, a flourishing digital ecosystem, and a substantial pool of skilled professionals. India currently accounts for 16% of the world's AI talent, second only to the United States, underscoring its demographic advantage and strong STEM education system.

The BCG report, titled 'India's AI Leap: BCG Perspective on Emerging Challengers', highlights a thriving AI ecosystem with over 600,000 AI professionals and 700 million internet users. Additionally, the country has witnessed a surge in AI startups, with more than 2,000 launched in the past three years.

Supporting this growth, the Indian government’s IndiaAI initiative has allocated a corpus exceeding ₹10,000 crore to establish national AI compute infrastructure. This initiative will provide access to over 10,000 GPUs for AI model training and research, further strengthening the country's AI capabilities.

These factors collectively position India as a major emerging challenger in the global AI landscape, with significant opportunities for innovation and economic growth.

Key quote: "India has a thriving AI ecosystem with over 600,000 AI professionals, 700 million internet users, and a surge of AI startups," said BCG.

Stat: India’s AI market is expected to grow to over USD 17 billion by 2027, more than tripling its current size.

India's AI market is projected to exceed USD 17 billion by 2027, more than tripling its current size, fueled by strong investments, a robust digital ecosystem, and a skilled workforce. The country hosts 16% of global AI talent and over 600,000 AI professionals, says BCG.