India’s AI market set to triple to $17 billion by 2027: Boston Consulting Group

India’s artificial intelligence market set to triple to $17 billion by 2027, says Boston Consulting Group

India’s artificial intelligence market was set to triple to $17 billion by 2027, Emerging as one of the fastest-growing AI economies globally, said Boston Consulting Group on Wednesday (June 11, 2025).

Also, India’s domestic AI market is currently backed by an ecosystem comprising over 600,000 AI professionals and is expected to more than double to 1.25 million by 2027, it said. Interestingly, India accounts for 16% of the global AI talent pool, second only to the United States, as per BGC.

According to the study, public digital infrastructure including Aadhaar, UPI, and ONDC, combined with rising enterprise investment, has created fertile ground for scalable AI innovation. Key enablers to this include: Data Scale with over 700M internet users, Infrastructure growth, and a surge of AI Start-ups with over 2000 launched in the past 3 years.

It further said AI was no longer confined to pilots and proof-of-concepts—it was redefining how Indian businesses compete and scale. The report, titled India’s AI Leap: BCG Perspective on Emerging Challengers highlighted how AI was driving not only operational efficiency, but also market expansion, faster decision-making, and innovation-led growth.

“AI is no longer an option but a business necessity. Indian companies are using it to leapfrog traditional growth curves and compete confidently on the global stage,’‘ said Mandeep Kohli, Managing Director and Partner, BCG India.

While the hurdle rate for successful deployment was high, the rewards were even higher, and the results speak for themselves. ‘‘What separates the leaders is not just the tech, but how they manage change, build talent, and embed AI into the fabric of their organization,” added Mr. Kohli.