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India AI Tech Spending Projected to Hit $10.4 Billion by 2028
India’s AI tech spending is expected to surge to $10.4 billion by 2028, growing at a robust annual rate of 38%, according to a report by IDC InfoBrief and UiPath. This expansion signifies mounting confidence in AI-led automation, enterprise upgrades, and infrastructure development across the country.
As organizations evolve, AI tech spending is shifting from exploratory pilots to enterprise-wide deployments. The growth is fueled by rising investments in agentic AI, cloud infrastructure, multilingual AI models, and scalable automation—a hallmark of India’s rapidly maturing AI ecosystem.
Key Drivers Behind India AI Tech Spending Growth
Agentic AI Adoption Soars
Nearly 40% of Indian organizations have already integrated agentic AI—systems that autonomously carry out business functions—while another 50% plan to adopt it within the next year. These capabilities are enhancing productivity and enabling smarter business operations.
High ROI and Enterprise Confidence
A substantial 80% of companies report productivity growth, and 73% cite better decision-making from agentic AI deployment. These metrics validate enterprise-level investment in AI technologies.
Infrastructure & Automation Investments
A major chunk of AI budgets is directed toward foundational capabilities—data infrastructure, automation, and scalable cloud platforms—readying enterprises for high-value use cases.
Economic Implications of AI Tech Spending
Market Momentum
India’s AI industry is projected to reach $17 billion by 2027 as enterprises transition from pilot phases to full-scale deployments.
Macro‑Economic Influence
Strategic AI investment could add $500 billion to India’s GDP by 2035, driving innovation, employment, and economic resilience.
Infrastructure Expansion
Major players like AWS are investing $12.7 billion in India’s cloud and AI infrastructure through 2030, enabling transformative developments in AI delivery and scalability.
Challenges Ahead for India’s AI Spending Surge
- Data Quality & Governance: Over 50% of enterprises cite poor data quality, and 62% flag governance issues as obstacles to effective AI scaling.
- Sustainability: Efficient AI scaling requires balanced energy usage and infrastructure readiness—including sustainable data centers.
- Talent & Equity: Scaling AI adoption must go hand-in-hand with reskilling and equitable access across urban and rural India.
Perspectives from Industry Analysts
IDC & UiPath Report: India’s AI strategy shifts from experimental to enterprise adoption, with strong traction in automation, GenAI, and infrastructure.
Boston Consulting Group (BCG): A powerful AI ecosystem and expanding infrastructure could triple India’s AI market to $17 billion by 2027.
Acuité Ratings: AI’s role in accelerating GDP and innovation is clear, but structural gaps in infrastructure and skill readiness must be addressed.
Conclusion: India AI Tech Spending—A Growth Story Underway
India’s projected AI tech spending of $10.4 billion by 2028 signals a maturing commitment to intelligent automation and digital infrastructure. Fueled by agentic AI adoption, enterprise confidence, and infrastructure investments, the momentum positions India as a rising leader in Asia’s AI transformation.
To fulfill this potential, focus must shift from deploying AI to maintaining quality data, sustainable systems, and inclusive upskilling—ensuring AI investments translate into long-term economic and social dividends.
Source-
https://ddnews.gov.in/en/indias-ai-tech-spending-projected-to-reach-10-4-bn-by-2028-report
