India’s artificial intelligence (AI) revolution is growing at record speed. A new report by the International Data Corporation (IDC) says India’s AI spending will increase by 38% every year from 2023 and could reach $10.4 billion by 2028.
This strong growth shows how India is moving from being just an adopter to becoming a global innovator in AI. Moreover, the rise of agentic AI—autonomous systems that act independently—is changing how businesses work, automate, and grow.
Agentic AI Is Driving India’s AI Boom
The IDC report highlights that agentic AI is the biggest force behind this growth. These systems can complete tasks, make decisions, and manage workflows with limited human help.
More than 90% of Indian organisations are expected to use AI agents in the coming year. This marks a big shift from small pilot projects to full-scale adoption.
According to Deb Deep Sengupta, Area Vice President, South Asia at UiPath, this shift shows that AI has reached a new level of maturity.
“The paradigm shift to agentic AI in India is accelerating. Enterprises are using AI agents to improve productivity and growth. The winners will be those who can combine people, processes, and technology effectively within a trusted system,” he said.
Therefore, the success of AI in India will depend not just on innovation but also on execution and governance.
India’s Role in Global AI Development
Across the Asia-Pacific and Japan (APJ) region, India has become a key innovation hub. The country now has over 1,950 Global Capability Centers (GCCs) that build AI-powered solutions for the world.
India’s strong developer base and engineering talent make it a natural leader in this space. At the same time, Singapore and Vietnam are becoming testing grounds for new AI applications, while Japan, China, and Taiwan continue to lead in AI patents and semiconductor research.
As a result, the APJ region is now one of the most dynamic contributors to global AI growth, and India stands at its center.
Companies Want Measurable AI Returns
Enterprises across India and APJ are now focused on results, not experiments. Over 50% of organisations in the region are shifting budgets toward AI adoption. Another 29% are already planning to deploy AI agents within the next two years.
Moreover, companies expect 2–4x returns on investment within 12 to 18 months. This demand for measurable impact is forcing vendors to demonstrate real business value.
Therefore, the focus of AI is shifting from cost-cutting to growth, efficiency, and innovation.
From Cost Savings to Revenue Growth
Earlier, many companies adopted AI to save time and reduce costs. Today, they are using it to create new business opportunities.
For example, financial service providers use AI for faster loan approvals and risk analysis, while manufacturers rely on it to improve supply chain operations. In healthcare, Indian firms are using AI agents to speed up claims processing and payment posting.
This change clearly shows that AI is no longer just a back-office tool—it’s becoming a core driver of revenue and competitiveness.
Orchestration Is the Next Advantage
Over 70% of APJ businesses say that orchestrating humans, AI agents, and automation tools together will give them an edge.
In India, this trend is already visible. Many firms now use hybrid models where AI supports employees in decision-making rather than replacing them. This collaboration ensures faster output, fewer errors, and better results.
For instance, healthcare companies are combining human expertise with AI workflows to handle repetitive tasks like data entry and verification more efficiently.
Consequently, orchestration is emerging as the foundation of future-ready enterprises.
Trust and Responsible AI Frameworks
As AI systems expand, the need for trust and regulation grows stronger. Countries across APJ are rolling out new frameworks to ensure ethical, transparent, and safe AI use.
Japan’s AI Promotion Act, Australia’s Voluntary AI Safety Standard, and the ASEAN Guide on AI Governance all reflect this new responsibility.
India is also developing its own AI ethics guidelines, focusing on transparency, inclusivity, and privacy protection. These efforts aim to build trust between people and AI systems—a key factor in long-term adoption.
Rise of the Agentic Workforce
AI spending is also changing how people work. The rise of agentic AI systems means that software agents can now plan, analyze, and execute tasks once done only by humans.
The World Economic Forum predicts that 86% of global employers believe AI will reshape business operations by 2030. In Japan alone, nearly 5 million workers will need new skills in AI and robotics by 2040.
India, with its massive tech talent base, is positioned to lead this transformation. The demand for AI-skilled professionals and AI spending will keep increasing as companies automate more roles.
India: From Adopter to Innovator
The UiPath report concludes that India is moving from adoption to innovation. Its expanding AI talent pool, strong digital infrastructure, and fast-growing GCC network are setting global benchmarks.
Today, India is not just using AI—it’s building it, exporting it, and defining its direction.
Furthermore, the country’s AI journey now focuses on value creation, not just automation. By combining innovation with responsibility, India is set to become one of the world’s key AI leaders in the next decade.
Conclusion
India’s AI revolution is no longer an experiment—it’s an economic strategy. With AI spending set to reach $10.4 billion by 2028, and agentic AI transforming industries, the future looks both exciting and dynamic.
As India continues to blend technology with trust, it’s not merely participating in the global AI revolution — it’s helping lead it.
AI Boom in India: Powering the Next Decade of Innovation
India is witnessing an unprecedented Artificial Intelligence (AI) revolution that’s transforming industries, governance, and daily life.
From intelligent automation to ethical AI frameworks, the nation is fast emerging as a global hub for scalable, inclusive innovation.
Here’s a quick look at how AI is reshaping the Indian landscape across key sectors.
Note: The AI Boom in India represents not just a tech trend, but a movement toward a smarter, inclusive, and digitally empowered future.
As AI becomes central to every industry, India is positioning itself as a global innovation engine driving sustainable and human-centered technology.
