India has emerged as a significant player in the field of artificial intelligence (AI), with indigenous models like BharatGen and Sarvam-1, robust digital infrastructure, and a deep talent pool, according to a report by India Narrative. The report underscores India’s rapid progress in AI, positioning it as an innovation hub and a proponent of fair global AI governance.
The report forecasts India’s AI market to grow at a 25–35% compound annual growth rate (CAGR) until 2027, ranking the country among the top globally in AI funding and competitiveness. India leads in acquiring AI talent, with an annual hiring rate of approximately 33% and AI skill penetration in relevant roles that is 2.5 times higher than the global average.
India’s advancements in AI infrastructure and capabilities have made it an ideal venue for hosting AI-related activities, surpassing other nations in this regard. The IndiaAI Mission, initiated in 2024 with an allocation of Rs 10,300 crore and over 38,000 GPUs, aims to provide affordable, high-quality computing access to startups, researchers, and students, with rates as low as Rs 67 per hour.
BharatGen, the world’s first government-funded multimodal large language model, and the indigenous Sarvam-1 optimized for ten major Indian languages signify India’s push towards sovereign, multilingual AI solutions. Additionally, India’s digital public infrastructure has demonstrated the scalability of systems over traditional models, making it a favorable testing ground for real-world AI applications.
The report also highlights India’s unique perspective in the global AI landscape, emphasizing the country’s commitment to inclusive growth and addressing societal challenges through AI. The India AI Impact Summit 2026, attended by global leaders and tech giants, positions India at the forefront of global discussions on artificial intelligence, advocating for an inclusive approach to AI development and deployment.
