Mumbai, India – In a significant development for India’s technology landscape, the artificial intelligence (AI) market is poised for robust growth, with projections estimating its value at $17 billion by the year 2027. This forecast comes from a collaborative study conducted by the National Association of Software and Service Companies (Nasscom) and Boston Consulting Group (BCG), which highlights an annual growth rate of 25-35% from 2024 to 2027.
Key Drivers of Growth
The anticipated expansion of India’s AI market is attributed to several key factors:
- Increased Spending on Enterprise Technology: Businesses across the country are ramping up their investments in tech, signaling a bullish outlook on AI-powered solutions.
- Growing AI Talent Pool: India’s workforce is increasingly aligning with the demands of the AI sector, boasting over 420,000 professionals engaged in AI-related job functions.
- Surge in AI Investments: The commitment to AI is evident not just in the deployment of AI technologies but also in the financial backing it receives, with significant investments directed toward nurturing this burgeoning sector.
Report Insights and Corporate Commitments
The report, which surveyed over 65 entities ranging from large to mid-tech firms and including business process management companies and global capability centers, sheds light on the vibrant ecosystem supporting AI growth in India. It underscores the country’s leading position in AI skill penetration globally and anticipates a continuous uptick in the demand for AI talent, expected to grow at an annualized rate of 15% until 2027.
Table: Projected Growth in India’s AI Market and Talent Pool
| Year | Market Value ($ Billion) | AI Talent Growth Rate (%) |
|---|---|---|
| 2024 | 10.2 | 10 |
| 2025 | 12.75 | 12 |
| 2026 | 15.94 | 14 |
| 2027 | 17 | 15 |
Key Takeaways
- AI Market Growth: The AI sector in India is projected to grow at an impressive rate, reaching a market value of $17 billion by 2027.
- AI Talent Pool: With over 420,000 professionals currently employed in AI roles, India boasts a substantial and growing talent pool.
- Investment in AI: Corporations like Wipro are leading the charge with significant investments, such as Wipro’s $1 billion commitment over three years to AI technologies.
- Corporate Skilling Initiatives: A vast majority (90%) of the top 25 technology service providers have pledged substantial resources toward AI training and skill development.
The findings from Nasscom and BCG’s joint report not only highlight the rapid advancement of AI technology in India but also underscore the country’s strategic position as a global hub for AI talent and innovation. With a comprehensive approach that includes investment in startup ecosystems, skill development initiatives, and enterprise tech spending, India is set to redefine its stature in the global AI landscape.
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