India’s artificial intelligence (AI) sector is on a rapid growth trajectory, with projections indicating it will triple in size to reach $17 billion by 2027, according to a report from Boston Consulting Group (BCG). The country employs over 600,000 AI professionals, which is expected to rise to 1.25 million in the next few years. India now accounts for 16% of the global AI talent pool, ranking second to the United States.
The report titled “India’s AI Leap: BCG Perspective on Emerging Challengers” examines how Indian companies are progressing from AI pilots to generating real business value. It emphasizes that AI is no longer just a tool for operational improvement—it’s becoming a driver of market expansion, faster decision-making, and innovation-led growth.
Expanding Infrastructure and Compute Power
To support this transformation, India is rapidly upgrading its infrastructure. By 2025, the country aims to establish 45 new data centres, adding 1,015 megawatts of capacity to its existing network of 152 centres. Under the government’s ₹10,000-crore IndiaAI mission, national AI compute capabilities are being scaled up, including access to over 10,000 GPUs for training models and conducting research.
Vibrant Start-up Ecosystem
India’s start-up environment is evolving alongside its infrastructure. With over 4,500 AI start-ups—40% of which launched in the past three years—the country is driving innovation in areas like healthcare, agriculture, logistics, and financial technology. Many of these start-ups are tackling uniquely Indian problems with globally scalable solutions.
Global Impact and Innovation Potential
The report notes that India’s combination of digital infrastructure, such as Aadhaar, UPI, and ONDC, and growing enterprise investments has created fertile ground for scalable AI development. With strong policy support, talent, and infrastructure, India is not just a fast adopter of AI—it is emerging as a global influencer in how AI will shape future economies.
AI as a Strategic Imperative
AI is no longer optional, it’s a business imperative,” said Mandeep Kohli, Managing Director and Partner at BCG India. Indian companies are using AI to bypass traditional growth limits and compete globally. Success hinges not just on the technology, but also on how organisations manage change, build talent, and embed AI into their core operations.
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