According to a report by Boston Consulting Group (BCG), India’s artificial intelligence (AI) market is projected to exceed $17 billion by 2027, more than triple its current size, fueled by rising enterprise technology investments, a robust digital ecosystem, and a growing pool of skilled talent.
As per the report, India accounts for 16 per cent of the global AI talent pool, ranking just behind the United States. This reflects its demographic edge and the strength of its science, technology, engineering, and mathematics (STEM) education system.
BCG highlighted the presence of over 600,000 AI professionals, 700 million internet users, and more than 2,000 AI startups launched in the last three years, showcasing the country’s vibrant AI ecosystem.
Further, India’s foundational digital public infrastructure, including Aadhaar, UPI, DigiLocker, and the Open Network for Digital Commerce (ONDC), offers a scalable backbone for deploying AI solutions across sectors.
With widespread smartphone use and a large internet user base, India generates vast volumes of data which is critical for training advanced AI models. BCG notes that this scale, combined with an open digital architecture, is enabling the creation of population-scale AI innovations.
Furthermore, in 2025, India is expected to add 45 new data centres, increasing capacity by 1,015 megawatt (MW) and expanding its existing network of 152 data centres.
