Once considered the world’s “back office” for IT services, India is reshaping its position to become an AI superpower as businesses, the government, and startups invest heavily in artificial intelligence.
Young engineer Meetesh Bhatt exemplifies this wave: thanks to AI, his real estate business has seen a 20–25% increase in revenue, using tools for demand forecasting and virtual tours.
According to Boston Consulting Group (BCG), India’s domestic AI market is set to triple, reaching $17 billion by 2027,driven by corporate investment, favorable policies, and a vast pool of technical talent.
However, AI is disrupting the traditional model of the IT industry, which relies on outsourcing and low-cost labor. 80% of jobs at major companies still involve repetitive programming, maintenance, and data analysis—areas now being replaced by automation.
The government has launched the “IndiaAI Mission” with a budget of $1.25 billion to promote research, universalize AI,and develop data infrastructure like the AI Kosh platform.
This initiative is expected to generate ₹1.5–2.5 trillion ($16.9–$28.2 billion) in tax revenue from the top 500 companies.
India currently has 600,000 AI professionals but needs an additional 30,000 high-level machine learning experts to sustain its growth momentum.
Leading universities have started allowing students to use generative tools like ChatGPT and are implementing AI for curriculum design and virtual tutoring—60% of educational institutions now have their own AI policies.
Startup Sarvam.ai is building a native large language model trained on Indian data and languages. Meanwhile, numerous smaller, specialized models for healthcare, insurance, and agriculture are emerging.
Despite the optimism, AI is causing turbulence in the labor market: Tata Consultancy Services has cut 12,000 jobs, and Infosys reports that AI could reduce its workforce demand by 35%. Mid-level workers are the most affected, forcing them to retrain and upskill.
The government is encouraging AI investment in agriculture, healthcare, and climate—sectors that currently receive less than 10% of total investment.
📌 India is transforming from a software outsourcing hub into an AI innovation nation. With the $1.25 billion IndiaAI Mission, 600,000 experts,
