AI spending in India to reach over $5 billion in next three years: Report

The manufacturing industry is anticipated to play a pivotal role in driving the country’s economic expansion, particularly within sectors such as electronics and consumer goods

AI spending in India is forecast to grow at an annual average rate of 31.5%, hitting $5.1 billion by 2027, the highest CAGR among eight markets surveyed, as per a joint report by Intel and IDC unveiled on Tuesday. 

“The manufacturing industry is anticipated to play a pivotal role in driving the country’s economic expansion, particularly within sectors such as electronics and consumer goods,” the report said. 

The eight markets surveyed were Australia, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan.

According to the report, the BFSI (Banking, Financial Services, and Insurance) and manufacturing sectors are emerging as the top spenders in India.

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Indian government has earmarked $30.7 million in FY 2024-25 to establish three centers of excellence in AI in the country focusing on agriculture, health, and sustainable cities.

Currently, India stands as an AI Practitioner (stage 2), according to the Intel and IDC joint study.