Synopsis: India’s vast digital network, booming AI startups, and 700 million internet users are propelling it toward global leadership in artificial intelligence. With strong government support and rapid adoption across industries, the country is fast emerging as the world’s next hub for scalable, data-driven innovation.
Artificial Intelligence is changing how businesses grow, make decisions, and connect with customers. Across industries, companies are using AI not only to cut costs but also to build smarter, faster, and more personalized services. Nowhere is this wave stronger than in India, a country with over 700 million internet users, a rich digital ecosystem, and a growing pool of AI talent.
With public platforms like UPI, Aadhaar, and DigiLocker, India has built one of the world’s most powerful digital foundations. The Boston Consulting Group’s India’s AI Leap report, published in June 2025, says the country’s AI market could more than triple to $17 billion by 2027. This growth is being driven by a rising number of tech investments, a vibrant startup scene, and over 600,000 AI professionals, a number that’s expected to double within two years.
India’s Big AI Moment
BCG points out that India now makes up 16 percent of the world’s AI workforce, second only to the United States. The government’s IndiaAI Mission, with a planned investment of Rs. 10,000 crore, aims to strengthen computer capacity and research infrastructure. Meanwhile, more than 4,500 AI startups have sprung up across the country, nearly half of them founded in just the past three years. These startups are solving real challenges in lending, logistics, education, and healthcare, building solutions designed for India but scalable worldwide.
India’s huge digital footprint also gives it an edge in data, the essential fuel for training AI systems. The government’s plan to add 45 new data centers by 2025 will further boost the country’s AI infrastructure. With its scale, affordability, and speed, India is quickly turning into a launchpad for population scale AI innovation.
Where AI Is Making the Most Impact?
The BCG report highlights four sectors where AI adoption is the most visible, financial services, retail, media, and real estate.
In finance, Razorpay is using AI to speed up everything from onboarding and fraud detection to customer support. Its AI chatbots handle nearly 90 percent of merchant queries, while AI assistants help teams make quicker business decisions.
In retail, Lenskart is blending technology with design. Its virtual “try-on” feature lets customers see how glasses fit in real time, while AI helps generate thousands of product images and descriptions each month. The company also uses computer vision in its stores to study customer behavior and improve layouts and service quality.
In media, Pocket FM has built one of the world’s largest AI-driven audio platforms. It produces thousands of hours of content every month using synthetic voice technology, cutting production time and cost dramatically. AI tools also help writers create new stories and translate them into multiple languages, helping the company expand globally.
In real estate, NoBroker has changed how Indians buy and rent homes. Its AI systems verify listings, predict accurate prices, and answer customer queries through conversational bots. The company’s AI image tool, “Iris,” checks for fake photos, while its pricing engines like Rent-o-meter make the process more transparent and data-driven.
Future Outlook
India’s combination of data, digital infrastructure, and talent gives it a rare opportunity to lead the global AI movement. As adoption grows, so does the responsibility to manage AI ethically, ensuring transparency, privacy, and fairness.
The message from BCG is clear: AI is no longer an experiment but the next growth engine for India’s economy. The businesses that move fastest, scale responsibly, and make AI part of their everyday operations will not just shape their industries, they will help define how the world builds and uses artificial intelligence.
-Manan Gangwar
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