Fast Growing AI Market is India's New Power
By Dr. Jayantilal Bhandari
According to a recent report by Boston Consulting Group (BCG) on June 11, India’s Artificial Intelligence (AI) market is projected to grow over three times, reaching $17 billion by 2027. Rapid investments, a flourishing startup ecosystem, and a strong digital infrastructure are accelerating the AI landscape in India.
India holds 16% of the world's AI talent, second only to the U.S., with over 600,000 AI professionals currently in the workforce — a number expected to rise to 1.25 million by 2027. Various industries are increasingly adopting AI to solve local challenges, foster innovation, and enhance competitiveness.
AI is no longer a luxury but a necessity. Indian companies are integrating AI to leapfrog traditional development models and compete globally. Multiple national and international reports recognize India’s growing AI role in economic development and the rising global demand for Indian AI talent.
Finance Minister Nirmala Sitharaman emphasized that AI-driven industries will help India become the third-largest global economy by 2028, according to the IMF. A recent report by the Ministry of Electronics and IT also highlighted the role of AI in India's journey to becoming a $23–25 trillion economy by 2047.
Google’s AI Opportunity Agenda notes that India's economic growth, rich talent pool, and vibrant startups make it well-positioned to benefit from AI. AI adoption is already boosting productivity across sectors — from agriculture and healthcare to manufacturing and services — potentially contributing ₹33.8 lakh crore to the Indian economy by 2030.
At the AI Action Summit 2025 in Paris, PM Narendra Modi stated that although there are concerns about job losses due to AI, history shows that technology transforms jobs rather than eliminates them. Emphasizing high-skilling for future roles, he called for investments in workforce development for an AI-powered era.
India's youth are actively shaping the digital AI revolution. OpenAI CEO Sam Altman calls India the second-largest AI market. Google’s Sundar Pichai and Microsoft’s Satya Nadella both recognize India’s potential to lead globally in AI, especially with its mathematically skilled youth.
Indian professionals are driving innovation in top global tech firms, while India's AI workforce is becoming a major contributor to service exports and foreign exchange. With global capability centers (GCCs) multiplying, the demand for high-skilled AI professionals is growing both domestically and globally.
The World Economic Forum’s “Jobs of the Future” report predicts 170 million new AI-related jobs globally by 2030, despite 92 million job losses due to automation — resulting in a net gain of over 78 million jobs. Top roles will include AI, machine learning, big data, and cybersecurity experts.
To meet this growing demand, India’s Union Budget 2025–26 launched three new AI-linked skill development programs. A strong focus is also being placed on generative AI, with Indian models like BharatGen, Devika, Sutra, Airavat, Sarvam-1, Chitralekha, and Everest-1 in progress.
However, India must rapidly develop its own robust generative AI models and revamp higher education — particularly in engineering. Preparing skilled engineers in AI, ML, cybersecurity, cloud computing, data science, and blockchain is essential for succeeding in the AI-driven global economy.
With the world’s largest youth population, India is poised to become a global AI skills hub. Equipping this generation with high-quality digital skills will be key to transforming India into the third-largest economy by 2028 and a developed nation by 2047.