India Artificial Intelligence Market Projected to Reach 13,245.65 Million by 2034, Driven by 26.50% CAGR

India Artificial Intelligence Market : Report Introduction

According to IMARC Group's report titled "India Artificial Intelligence Market Size, Share, Trends and Forecast by Type, Offering, Technology, System, End-Use Industry, and Region, 2026-2034" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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India Artificial Intelligence Market Overview

The India artificial intelligence market size was valued at USD 1,597.28 Million in 2025 and is projected to reach USD 13,245.65 Million by 2034, growing at a compound annual growth rate (CAGR) of 26.50% during the forecast period 2026-2034. This growth is driven by rapid digital transformation, supportive government policies, and a skilled talent pool fueling intelligent automation and analytics across key sectors.

India Artificial Intelligence Market Key Takeaways

• Current Market Size: USD 1,597.28 Million in 2025
• CAGR: 26.50% from 2026 to 2034
• Forecast Period: 2026-2034

• Narrow/weak artificial intelligence dominates with an 88% market share in 2025 due to specialized task-specific capabilities and cost-effectiveness.

• Software leads the offering segment with a 50% share owing to the demand for AI-powered platforms and applications.

• Machine learning represents the largest technology segment with a 39% market share driven by predictive
analytics and data-driven decision-making.

• Intelligence systems dominate by system type holding a 35% share due to autonomous decision-making capabilities.

• Healthcare is the largest end-use industry with an 18% market share, propelled by AI-driven diagnostics and precision medicine.

• North India leads regionally with a 30% market share, benefiting from tech hubs and strong policy support.
India Artificial Intelligence Market Growth Factors

• Digital transformation across industries is accelerating enterprise adoption of AI for automation, analytics, and enhanced customer experience.

• Government policies are supporting AI development through public-private partnerships and investments in critical infrastructure under national AI initiatives.

• India's AI talent pipeline is expanding, with approximately 416,000 AI professionals expected by 2025, strengthening research, development, and deployment capabilities.

• Enterprise technology investments in intelligent automation are projected to grow significantly across healthcare, manufacturing, and financial services sectors.

• Expanding digital infrastructure and rising smartphone penetration are driving large-scale data generation, supporting AI model development.

• Growing enterprise demand for intelligent automation is improving operational efficiency and data-driven decision-making.

• The government has committed to upskilling over 3.1 million civil servants to enhance AI competency and governance frameworks.

• Development of vernacular and multilingual AI solutions is addressing India's linguistic diversity and promoting digital inclusivity.

• Increasing focus on AI-driven innovation in the public sector is supporting applications such as smart city infrastructure and public health data analytics.

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India Artificial Intelligence Market Trends

• Indian companies are increasingly integrating generative AI into business operations, with 47% expected to have multiple generative AI use cases fully operational by 2025.

• Rapid proliferation of narrow (weak) AI is enabling specialized, task-specific applications across industries.

• Development of vernacular and multilingual AI platforms is essential to address India-specific language use cases.

• Launch of BharatGen, India's sovereign multilingual AI Large Language Model, supports 22+ Indian languages with ₹1,293 crore in central government funding.

• AI adoption in healthcare is expanding across diagnostics, drug discovery, and telemedicine applications.

• Growing deployment of AI-powered autonomous decision-making systems and intelligent frameworks is transforming business processes.

• The government plans to strengthen AI research infrastructure, establish national centers of excellence, and implement a structured AI competency framework.

• Rising emphasis on data-driven decision-making is increasing demand for data scientists across manufacturing, finance, and retail sectors.

• Expansion of cloud-based AI software is enabling scalable and customizable smart process automation solutions.

India Artificial Intelligence Market Segmentation

• Type:
• Narrow/Weak Artificial Intelligence (Dominates with 88% share in 2025; specialized, efficient for specific tasks)
• General/Strong Artificial Intelligence
• Offering:
• Hardware

• Software (Leads with 50% share in 2025; drives AI platform demand and software-as-a-service delivery)
• Services
• Technology:
• Machine Learning (Largest segment with 39% share; used for predictive analytics and decision support)

• Natural Language Processing
• Context-Aware Computing
• Computer Vision
• Others
• System:

• Intelligence Systems (Leading system type with 35% share; integrates multiple AI capabilities for autonomous operations)

• Decision Support Processing
• Hybrid Systems
• Fuzzy Systems
• End-Use Industry:

• Healthcare (Largest end-use with 18% share; driven by AI in diagnostics and precision medicine)

• Manufacturing
• Automotive
• Agriculture
• Retail
• Security
• Human Resources
• Marketing
• Financial Services
• Transportation and Logistics
• Others

Regional Insights

• North India (Market leader with 30% share in 2025; strong tech hubs and government policy support)
• West and Central India
• South India
• East India

North India dominates the India artificial intelligence market with a 30% share in 2025, supported by robust digital infrastructure and government policies. The market exhibits a strong CAGR of 26.50% over the forecast period 2026-2034.

India Artificial Intelligence Market Recent Developments & News

• In June 2025, Samsung India launched its 2025 Bespoke AI appliance range, including AI-powered refrigerators, air conditioners, and laundry combos featuring AI Home screens, Bixby voice assistant, and SmartThings integration, enhancing personalized smart home experiences.

• In February 2026, Fractal Analytics announced its IPO price band targeting approximately 144.5 billion rupees valuation, demonstrating investor confidence in domestic AI firms.

• In December 2025, Bengaluru-based Gnani.ai launched Vachana STT, an Indic speech-to-text model trained on over one million hours of voice data under the IndiaAI Mission, improving localized speech recognition.

• In November 2025, Dr. Jitendra Singh unveiled BharatGen, India's sovereign multilingual AI Large Language Model, supported by ₹1,293 Crore government funding, covering 22+ Indian languages.

• Google announced an $8 million funding initiative in December 2025 for India's AI Centers of Excellence to advance machine learning research.

Key Highlights of the Report

• Comprehensive analysis of market size, trends, forecasts for 2026-2034.

• Detailed segmentation by type, offering, technology, system, end-use industry, and region.

• Identification of key market growth drivers, restraints, and trends.

• Insights into competitive landscape and recent developments.

• Extensive data on government initiatives and talent ecosystem.

• Strategic recommendations for stakeholders to leverage market opportunities.

India Artificial Intelligence Market Key Players

• Fractal Analytics
• Cognizant
• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• Samsung India
• Gnani.ai
• Google

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