India’s AI market set to hit $17 billion by 2027: what vertical SaaS means for growth

India’s artificial intelligence market is on track to hit $17 billion by 2027, expanding at a compound annual growth rate (CAGR) of 25-30%, according to NASSCOM.

A key driver of this growth is the rise of vertical SaaS platforms, which are specialized AI-powered software solutions tailored to specific industries. Unlike generic software, these platforms act as digital infrastructure supporting compliance, workflow, and data structures unique to each sector.

Startups like Minkasu, Pharmarack, and Posify exemplify this trend by leveraging AI to automate processes, provide actionable insights, and enable intelligent decision-making within their respective fields.

"AI-powered vertical SaaS platforms can deliver measurable outcomes in weeks," experts note, highlighting that these models come pre-trained on relevant data and are designed for specific use cases. This eliminates the need for businesses to invest heavily in building infrastructure or training datasets from scratch, accelerating adoption and reducing costs.

The combination of rapid AI advancements and industry-specific SaaS solutions is transforming how Indian businesses operate, promising enhanced efficiency and competitive advantage across sectors.

As vertical SaaS continues to mature, it is expected to play a pivotal role in sustaining the robust growth trajectory of India’s AI market through 2027 and beyond.

India’s AI market is projected to reach $17 billion by 2027, growing at a CAGR of 25-30%, driven by vertical SaaS platforms that provide industry-specific AI solutions. These platforms enable faster automation, compliance, and intelligent decision-making, reducing infrastructure costs for businesses.