India’s AI Market to Triple to $17 billion by 2027
India’s domestic artificial intelligence (AI) market is poised to more than triple to $17 billion by 2027, according to a new report from the Boston Consulting Group (BCG), placing the country among the fastest-growing AI economies globally.
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India’s domestic artificial intelligence (AI) market is poised to more than triple to $17 billion by 2027, according to a new report from the Boston Consulting Group (BCG), placing the country among the fastest-growing AI economies globally.
This projected surge is driven by a potent mix of increasing enterprise tech investment, deep digital penetration, and a talent pool second only to the US.
The BCG white paper, ‘India’s AI Leap,’ outlines how Indian companies are no longer dabbling in pilots but moving rapidly toward scaled AI deployment—especially in fintech, consumer retail, media, and real estate.
These sectors are now reaping tangible benefits such as higher revenues, improved operational efficiency, and faster customer response times, the report said.
India already has over 600,000 AI professionals, a number expected to double to 1.25 million by 2027. This workforce advantage, coupled with public platforms like Aadhaar, UPI, DigiLocker, and ONDC, has made it easier for Indian firms to roll out AI-driven services at scale.
The government’s ₹10,000 crore IndiaAI mission, which aims to build nationwide compute capacity and deploy 10,000+ GPUs, will further accelerate this momentum, it said.
BCG’s analysis showed AI has already expanded the total addressable market across key sectors by 1.2 to 1.5 times.
Fintech firms are reducing loan approval times by up to 70%, while e-commerce firms are lifting conversion rates by 10–15% through personalization.
In media and entertainment, production costs have dropped over 80%, thanks to generative AI, and in healthcare, diagnostics and consultations are reaching underserved geographies for the first time, it added.
“Business models are being rewritten, value chains restructured, and new categories are born overnight. This is a moment of inflection, and the message couldn’t be clearer: AI is not a side project, it’s the next growth engine,” the report by a BCG team comprising Kanchan Samtani, Mandeep Kohli, Roshni Rathi, Shaleen Sinha, and Karan Chadha said.
“Those who move fast will lead; those who hesitate will watch opportunity and market shares slip away,” the report said, adding, “The winners are already deploying AI against sharp, high-impact problems, running agile pilots, failing fast, learning faster, and scaling only what works.”
