India’s AI market set to surge to over $130 billion by 2032
India’s domestic artificial intelligence market, currently worth about $7.6 billion, is forecast to grow to $131.31 billion by 2032, a more than 17-fold increase, reflecting rapid digital transformation and infrastructure build-out.
The AI market in India has expanded from roughly $2.97 billion in 2020 to $7.63 billion in 2024, and is projected to reach $131.31 billion by 2032 at a compound annual growth rate (CAGR) of about 42.2 percent.
The growth outlook is underpinned by systematic progress across five layers of AI architecture, encompassing models, applications, chips, infrastructure and energy, with strong foundational infrastructure such as data centres and widespread internet connectivity enabling cloud adoption and data-driven services across sectors.
India’s acceleration in AI adoption aligns with broader digital trends and policy pushes, with readiness indices and talent penetration indicating that the nation is better positioned than many emerging economies to scale AI across industries.
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