India's AI Market to Hit $17B by 2027: BCG Report
India's AI market is set to experience explosive growth, as it's estimated to grow three times to $17 billion by 2027. India is set to become one of the world's fastest-growing AI economies, as per the latest report by Boston Consulting Group (BCG). The India's AI Leap: BCG Perspective on Emerging Challengers report unveils how AI is leaving the experimental stage and entering mainstream adoption across sectors.
Key Drivers: Digital Ecosystem, Talent, and Investments
The report outlines some of the key drivers for this growth as elevated enterprise tech investments, a fast-expanding digital ecosystem, and India's strong talent pool. With more than 700 million internet users, high mobile penetration rates, and sophisticated public platforms like UPI, India presents a perfect ecosystem for cost-effective and scalable AI innovation. In addition, India's AI talent pool is growing fast, with over 600,000 experts in the industry today, and the figure projected to hit 1.25 million by 2027. Currently, India represents 16% of the world's AI talent pool, behind only the United States.
Also Read: Deloitte Establishes Asia Pacific Agentic AI CoE in India, Malaysia, and Singapore
AI Driving Innovation Across Industries
The report highlights that AI has become the key to business success, with Indian businesses leveraging AI to boost growth and compete at a global level. Startups and big companies are both incorporating AI into their systems to fuel innovation. For example, fintech firm Razorpay has made 80% of customer support operations automated, and Pocket FM has cut costs associated with content production by 80%. Businesses such as NoBroker and Lenskart are using AI to tailor experiences and automate processes, highlighting how Indian companies are shifting from AI pilots to broad deployments that reshape industries.
BCG India Managing Director and Partner Mandeep Kohli said, "AI is no longer an option but a business necessity," as businesses throughout India use AI to enhance efficiency and growth.
