India’s artificial intelligence (AI) market is projected to triple to $17 billion by 2027, emerging as one of the fastest-growing AI economies globally, according to reports.

AI has advanced beyond mere trials and demonstrations—it is transforming the ways Indian companies compete and expand. India currently constitutes 16 percent of the global AI workforce, ranking just behind the United States.

A report from Boston Consulting Group (BCG) examined how Indian companies in various industries are shifting from testing to generating measurable value.

India’s domestic AI market is backed by a thriving ecosystem of 600,000 professionals today, expected to grow to 1.25 million by 2027.

The establishment of public digital infrastructure, such as Aadhaar, UPI, and ONDC — alongside increasing investments from enterprises, has paved the way for significant advancements in AI.

Important factors contributing to this include a vast data pool comprising over 700 million internet users, growth in infrastructure, and a notable rise in AI startups, with 2,000 emerging over the last three years. The report provides a well-defined strategy for businesses aiming to expand their AI capabilities.

“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,” says Mandeep Kohli, Managing Director and Partner, BCG India.

While the hurdle rate for successful deployment is high, the rewards are 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,” says Mandeep.

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AI is not a side project — it’s the next growth engine. Those who act boldly, invest in scalable data and talent foundations, and partner across the ecosystem will define the next decade of growth—for their companies and for India.