AI in India: $900 million investment, $500 billion contribution to GDP by 2025 [REPORT]

The global investment in AI has doubled in the past year, and the contribution to the global economy is estimated to reach $1.59 trillion by 2030. But India's contribution to global AI investment remains at just 1.5%.

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The exploded adoption of Artificial Intelligence in India has resulted in enormous opportunities for job seekers, investors, and entrepreneurs. As a result of it, the investment in India’s Artificial Intelligence is estimated to grow at a record rate in the years to come. According to the most recent report by NASSCOM, investments in India’s AI capabilities could reach $881 million in 2023, clocking 30.8% CAGR.

The record growth in India is largely influenced by the fast-changing dynamics in the global tech industry which is banking on AI more than ever before. Global AI investments increased by more than 50% in the past year, while India’s share of global investment remains at 1.5 percent, according to the report. Despite its rapid growth, India will still account for 2.5% of global investments in AI by 2023. It clearly reflects that India is far from claiming a sizeable share of the global innovation market in spite of having a fast-paced economy.

It is estimated that Data and AI will add $450- $500 billion to India’s GDP in 2025. The report highlights that 60% of this value-add will come from consumer goods, retail, financial services & insurers, energy & manufacturing, healthcare, and the banking sector.


Along with EY, Nasscom surveyed 350 companies. Nearly 65 percent of respondents had defined an AI strategy at either a functional or enterprise level. India’s AI maturity is at the Enthusiast level, which is the second stage of the four-stage adoption assessment.

Indian companies use AI to perform different business functions. However, predictive analytics and chatbots remain the most popular AI applications in India.

The Personal Data Protection Bill has been deemed as a significant change in policy by the report. It suggests that companies are adopting a data sanitization process to remove personal identifiers in order to comply with the proposed norms.

“The pandemic made it an extremely critical time for organizations that move from data and technology silos to building AI capabilities at scale across all sectors along with a structured data utilization plan,” says Debjani Ghosh, President – Nasscom.

Chief executive officer of NITI-Aayog Amitabh Kant believes that India needs to continue improving in core and applied research as well as high-quality research. He emphasized the need of having India’s supercomputing abilities at the level where the USA and China currently stand.


Undoubtedly, AI is going to be a game-changer in the years to come. Artificial intelligence (AI) has the ability to transform the productivity and GDP potential of the global economy if deployed in the right direction at the right time. According to another report, the contribution of AI to the global economy could swell up to a whopping $1.59 trillion by 2030. Just to put things in perspective, it is more than the current contribution of China and India combined.


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