India’s artificial intelligence market is experiencing rapid growth. It is projected to reach $17-22 billion by 2027, driven by an annual growth rate of 25-35% (CAGR). This expansion is fueled by rising investments – over $4 billion was invested in AI in India during 2022-23 alone. AI is also expected to have a significant economic impact: official estimates project it could contribute nearly $500 billion to India’s GDP by 2025. Despite this strong local growth, India currently accounts for only about 1.5% of global AI spending, indicating substantial room to grow its share of worldwide investment. The overall trend shows a robust upward trajectory, with public and private funding accelerating the AI ecosystem’s expansion.
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