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    India Applied AI Market

    ID: MRFR/ICT/57292-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    India Applied AI Market Research Report By Components (Software, Services) and By Application (Healthcare, Finance, Retail and E-commerce, Predictive maintenance, Industrial robotics, Natural Language Processing, Energy and Utilities, Agriculture, Cybersecurity, Education, Entertainment and Media, Real Estate, Transportation and Logistics, Environmental Monitoring, Human Resources, Others)- Forecast to 2035

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    India Applied AI Market Infographic

    India Applied AI Market Summary

    The India Applied AI market is poised for substantial growth, projected to reach 63.6 USD Billion by 2035 from a base of 10.5 USD Billion in 2024.

    Key Market Trends & Highlights

    India Applied AI Key Trends and Highlights

    • The market is expected to grow from 10.5 USD Billion in 2024 to 63.6 USD Billion by 2035.
    • A compound annual growth rate (CAGR) of 17.83 percent is anticipated from 2025 to 2035.
    • The rapid expansion of AI technologies is likely to drive increased investment and innovation in the sector.
    • Growing adoption of AI technologies due to enhanced data analytics capabilities is a major market driver.

    Market Size & Forecast

    2024 Market Size 10.5 (USD Billion)
    2035 Market Size 63.6 (USD Billion)
    CAGR (2025-2035) 17.83%

    Major Players

    Tech Mahindra, Cognizant, Wipro, Infosys, Mphasis, ZS Associates, HCL Technologies, Mu Sigma, Tata Consultancy Services, Fractal Analytics, LTI, Manthan, Quantiphi, Mindtree

    India Applied AI Market Trends

    A number of important market factors are driving the notable expansion of the applied AI market in India. As part of its Digital India project, the Indian government has been aggressively pushing artificial intelligence with the goal of improving digital infrastructure and encouraging innovation across a range of industries.

    The growing need for AI applications across a range of industries, including healthcare, finance, agriculture, and education, presents opportunities to be investigated. AI technology integration in various fields has the potential to enhance productivity and decision-making, which makes it essential to India's future development.

    AI is being used more and more by startups and well-established businesses for automation, natural language processing, and predictive analytics, signalling a thriving market for investment and innovation. A rise in AI-driven goods and services designed especially for the Indian market is seen in recent developments.

    Companies are concentrating on localised solutions that tackle the particular difficulties faced by Indian customers in addition to worldwide applications. Due to a youthful and technologically literate populace, small and medium-sized businesses (SMEs) are increasingly utilising AI to gain a competitive edge.

    Furthermore, partnerships between academic institutions and business leaders are become more frequent, which promotes a knowledge-driven ecosystem that is crucial for AI's long-term growth in India. The increasing awareness of responsible AI deployment in society is reflected in the growing importance of ethical AI practices and laws as the market develops.

    India Applied AI

    Market Segment Insights

    India Applied

    India Applied AI Market Segment Insights

    Applied

    Applied AI Market Components Insights

    The India Applied AI Market's Components segment plays a crucial role in shaping the country's technological landscape, reflecting a strong trajectory of growth. The overall market is projected to experience significant expansion, demonstrating the increasing adoption of AI solutions across various sectors, driven by the need for enhanced efficiencies and data-driven decision-making.

    Within this segment, the focus on Software and Services is particularly noteworthy. Software is key, providing the essential tools and frameworks that enable organizations to deploy AI algorithms effectively, thus streamlining operations and improving productivity.

    The rapid growth in cloud computing has further fueled this software development, allowing businesses of all sizes to leverage advanced AI capabilities without substantial upfront infrastructure investments. On the other hand, the Services aspect caters to the diverse needs of businesses looking to implement AI technologies.

    Applied

    Applied AI Market Application Insights

    The India Applied AI Market, particularly in the Application segment, showcases significant potential across various sectors, contributing to the overall digital transformation initiatives in the country.

    With the market projected to exhibit substantial growth, sectors such as Healthcare and Finance have emerged as key players, leveraging AI for enhancing diagnostic accuracy and driving financial analytics, respectively.

    Retail and E-commerce utilize AI for personalized shopping experiences and inventory management, while Predictive maintenance and Industrial robotics streamline manufacturing processes, elevating operational efficiency.

    India Applied

    In Agriculture, AI aids in precision farming, helping farmers make informed decisions based on data-driven insights. Cybersecurity benefits from AI in threat detection and response, protecting sensitive information amidst increasing digitalization.

    Educational frameworks incorporate AI to customize learning experiences for students, while Entertainment and Media sectors use it for content personalization and recommendation algorithms.

    Real Estate gains from AI in property valuation and market analysis, and Transportation and Logistics enhance route optimization, while Environmental Monitoring utilizes AI to track climate changes and resource management.

    Overall, the array of applications signifies how AI technologies are positioned to influence diverse industries in India, fostering innovation and enhancing efficiency across the board, ultimately driving the market growth.

    Get more detailed insights about India Applied AI Market

    Key Players and Competitive Insights

    The India Applied AI Market has witnessed significant growth in recent years, driven by the increasing adoption of artificial intelligence across various sectors such as healthcare, finance, and retail. With advancements in machine learning, natural language processing, and computer vision, businesses are leveraging applied AI to enhance operations, improve customer experiences, and drive innovation.

    The competitive landscape is characterized by a mix of established players and emerging startups, each vying to capture market share through innovative solutions, strategic partnerships, and investment in research and development.

    The ability to harness data for actionable insights has become a key differentiator, with companies focusing on developing tailored AI applications that meet the specific demands of Indian consumers and businesses.

    Tech Mahindra holds a strong position within the India Applied AI Market, showcasing its capabilities through a robust portfolio of AI-driven solutions aimed at enhancing customer service and operational efficiency. The company's expertise lies in developing intelligent automation tools that are integrated into existing business processes, thereby optimizing performance and reducing costs for clients.

    Tech Mahindra has adopted a proactive approach to foster innovation, investing in research and development to stay ahead of technological advancements. By establishing partnerships with leading technology providers, Tech Mahindra has enhanced its service offerings, catering to a diverse clientele across various sectors in India.

    The company's commitment to digital transformation ensures that it remains competitive in the rapidly evolving AI landscape.

    Cognizant is also a notable player in the India Applied AI Market, recognized for its comprehensive suite of AI services that address various business needs. The company's key offerings include AI-driven analytics, machine learning platforms, and intelligent automation solutions tailored for Indian enterprises.

    Cognizant's strong market presence is bolstered by strategic mergers and acquisitions that expand its technological capabilities and client base within the region. By focusing on industry-specific applications of artificial intelligence, the company effectively addresses challenges faced by clients in sectors such as banking, consumer goods, and healthcare.

    Cognizant’s investment in upskilling its workforce in AI technologies enables it to provide cutting-edge solutions that empower clients to harness the power of data effectively. This dedication to innovation and client-centric service solidifies Cognizant's reputation as a formidable force in the competitive landscape of the India Applied AI Market.

    Key Companies in the India Applied AI Market market include

    Industry Developments

    Under the IndiaAI Mission, the Indian government formally established the AI Safety Institute in January 2025 with the goal of creating guidelines, risk assessments, and moral standards for the use of AI. As businesses continue to prioritise generative AI technologies, national AI investment increased in April 2025. According to forecasts, AI budgets will almost triple this year compared to 2024.

    Google introduced the AI First India 2025 Accelerator in May 2025, providing mentorship and access to cutting-edge AI infrastructure to early- to growth-stage AI entrepreneurs. The Maharashtra government previously announced the MahaAgri-AI Policy in February 2025, setting aside ₹500 crore to implement drone and AI technology for precision farming over the following three years.

    SuperOps, an enterprise AI firm based in Bengaluru, raised $25 million in Series C funding in April 2025 to advance its AI-first ITOps solutions. Lastly, in October 2024, Sarvam AI, a generative AI business, raised $41 million in Series A funding to increase the number of large language models it offers in Indic.

    The dynamism and strategic prioritisation of applied AI across industries including agriculture, enterprise services, and governance in India are highlighted by these projects, which collectively span public policy, startup finance, and ethical frameworks.

    India Applied AI

    Market Segmentation

    Outlook

    • Healthcare
    • Finance
    • Retail and E-commerce
    • Predictive maintenance
    • Industrial robotics
    • Natural Language Processing
    • Energy and Utilities
    • Agriculture
    • Cybersecurity
    • Education
    • Entertainment and Media
    • Real Estate
    • Transportation and Logistics
    • Environmental Monitoring
    • Human Resources
    • Others

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 8.35(USD Billion)
    MARKET SIZE 2024 10.46(USD Billion)
    MARKET SIZE 2035 63.56(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 17.823% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Tech Mahindra, Cognizant, Wipro, Infosys, Mphasis, ZS Associates, HCL Technologies, Mu Sigma, Tata Consultancy Services, Fractal Analytics, LTI, Manthan, Quantiphi, Numpy, Mindtree
    SEGMENTS COVERED Components, Application
    KEY MARKET OPPORTUNITIES Healthcare automation solutions, Retail personalized experiences, Agricultural data-driven insights, Financial fraud detection systems, Smart city infrastructure enhancements
    KEY MARKET DYNAMICS Rapid technology adoption, Increasing government support, Growing demand for automation, Rising investment in startups, Expanding industry applications
    COUNTRIES COVERED India

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    FAQs

    What is the expected market size of the India Applied AI Market in 2024?

    The India Applied AI Market is expected to be valued at 10.46 USD Billion in 2024.

    What is the projected market size of the India Applied AI Market by 2035?

    By 2035, the India Applied AI Market is projected to reach a value of 63.56 USD Billion.

    What is the expected CAGR for the India Applied AI Market from 2025 to 2035?

    The expected CAGR for the India Applied AI Market from 2025 to 2035 is 17.823.

    Who are the key players in the India Applied AI Market?

    Key players in the India Applied AI Market include Tech Mahindra, Cognizant, Wipro, Infosys, and Tata Consultancy Services.

    What is the expected market value of the Software component in the India Applied AI Market in 2024?

    The Software component of the India Applied AI Market is expected to be valued at 4.18 USD Billion in 2024.

    What is the market value of the Services component in the India Applied AI Market in 2024?

    In 2024, the Services component of the India Applied AI Market is expected to be valued at 6.28 USD Billion.

    What will be the market value of Software by the year 2035?

    The Software segment is projected to reach a market value of 27.0 USD Billion by 2035.

    What will be the market value of Services by the year 2035?

    By 2035, the Services segment is expected to reach a market value of 36.56 USD Billion.

    What are the key opportunities driving the growth of the India Applied AI Market?

    Key opportunities include advancements in machine learning, increased automation, and growing demand for data analytics.

    How do current global economic conditions impact the India Applied AI Market?

    Current global economic conditions influence technology investments and can create both challenges and opportunities in the India Applied AI Market.

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