India Artificial Intelligence Market Size, Share, and COVID-19 Impact Analysis, By Offering (Hardware, Software, and Services), By Technology (Machine Learning, Deep Learning, NLP, Context awareness, And Computer Vision), and India Artificial Intelligence Market Insights, Industry Trend, Forecasts to 2035

India Artificial Intelligence Market Insights Forecasts to 2035

• The India Artificial Intelligence Market Size was Estimated at USD 21.65 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 25.24% from 2025 to 2035
• The India Artificial Intelligence Market Size is Expected to Reach USD 257.45 Billion by 2035

According to a Research Report Published by Spherical Insights & Consulting, The India Artificial Intelligence Market Size is anticipated to Reach USD 257.45 Billion by 2035, Growing at a CAGR of 25.24% from 2025 to 2035. The market's expansion is mostly due to a robust supply of highly qualified STEM workers, encouraging government programs, the quick digitization of numerous end-use industries, the growing need for AI-driven solutions, and ongoing advancements in AI applications.

Market Overview

The Artificial Intelligence Market Size in India is the ecosystem of businesses, apps, and technology devoted to creating intelligent systems that can carry out tasks like learning, reasoning, and decision-making that normally demand for human cognition.  It includes advancements in a variety of sectors, such as manufacturing, healthcare, finance, and education, and is propelled by policy efforts, technological advancements, and a robust talent pool. Additionally, the AI sector is advancing due to the increasing use of autonomous artificial intelligence (AI).  The development of sophisticated autonomous Al systems made possible by advancements in natural language processing, machine learning, and algorithms is propelling this movement.  Businesses from a range of industries are drawn to these technologies because they offer greater accuracy and dependability.  Process optimization via Autonomous Al lowers costs and boosts output.  It can be used in the retail, finance, industrial, healthcare, and transportation sectors.  Adoption of the autonomous aluminum sector is aided by the cost savings that come from automation.  The artificial intelligence (Al) market is anticipated to expand in size as technology advances and more industries learn about its advantages, spurring innovation and opening up new opportunities.

Report Coverage

This research report categorizes the market for the India artificial intelligence market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the India artificial intelligence market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the India artificial intelligence market.

Driving Factors

The large pool of highly qualified individuals in science, technology, engineering, and mathematics (STEM) domains that helps create cutting-edge AI algorithms, applications, and solutions that serve both domestic and international markets boosts India's market dominance in artificial intelligence.  Furthermore, the industry expansion is being supported by the government's aggressive efforts to encourage the adoption of AI through financing assistance and legislative initiatives.  Accordingly, the launch of Startup India and the National AI Strategy has promoted investments in AI companies and enabled industry academia cooperation, which has aided in the expansion of the market. Furthermore, the swift digital transformation occurring in many industries such as manufacturing, e-commerce, healthcare, and finance has increased demand for AI-driven solutions to improve customer experience, productivity, and efficiency. This, in turn, is bolstering market growth.

Restraining Factors

The lack of a qualified workforce, poor data infrastructure, difficulties integrating with legacy systems, a lack of early-stage investment, and ambiguous governance frameworks are some of the major obstacles facing India's AI market.  These elements impede innovation, scalability, and broad industry acceptance.

Market Segmentation

The India artificial intelligence market share is classified into offering and technology.

• The software segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The India artificial intelligence market is segmented by offering into hardware, software, and services. Among these, the software segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The majority of the artificial intelligence (AI) market in India is made up of software.  The software is essential to the development and deployment of AI-based applications and solutions.  As AI technology develops, there is an increasing need for sophisticated and superior software tools and platforms.  Numerous businesses, like as healthcare, finance, and retail, employ the software solutions for tasks like chatbots, picture recognition, and fraud detection.

• The machine learning segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The India artificial intelligence market is segmented by technology into machine learning, deep learning, NLP, context awareness, and computer vision. Among these, the machine learning segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. AI systems driven by machine learning (ML) are essential for difficult tasks like natural language processing (NLP), picture identification, and predictive analytics because they can evaluate large volumes of data and spot patterns.  The technique of continuous learning also makes it possible for machine learning-based AI to provide precise insights and forecasts while remaining relevant in ever-changing situations.  ML-based AI is essential for obtaining a competitive edge across industries, improving the outlook for the Indian artificial intelligence industry, and generating important insights as businesses look for data-driven solutions more and more.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the India artificial intelligence market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Ai India Innovations
• Global AI Solutions PVT LTD
• Prophecy Market Insights
• Reports and Data
• Infosys Limited
• Tech Mahindra Limited
• Others

Recent Developments:

• In June 2025, Google had launched AI Mode in India as a Labs experiment, bringing its most advanced AI search experience to Indian users in English. Powered by a custom version of Gemini 2.5, AI Mode enabled multimodal, real-time search using text, voice, and images, and allowed users to ask complex queries 2–3x longer than traditional searches. With India already among Google's top markets for AI adoption and Lens usage, this rollout marked a significant step in strengthening the country’s consumer AI ecosystem and boosting homegrown content discovery via AI-powered search.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at India, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the India Artificial Intelligence Market based on the below-mentioned segments:

India Artificial Intelligence Market, By Type

• Hardware
• Software
• Services

India Artificial Intelligence Market, By Technology

• Machine Learning
• Deep Learning
• NLP
• Context awareness
• Computer Vision