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Is India Becoming an AI Powerhouse? India is set to invest over ₹ 86,840 crore in AI by 2028

By Nishant Richhariya
Published On: August 8, 2025
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India is set to invest over ₹ 86,840 crore in AI by 2028
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Delhi| 08 Aug 2025| Reading Time-3 Minute’s

India’s corporate landscape is quickly changing, and artificial intelligence is leading that shift. A new report by IDC and Ui Path suggests that India’s spending on AI technologies will jump to a whopping ₹86,840 crore by 2028.

Why India Declared to Invest in AI

But this isn’t just a number it’s a sign of how deeply AI is beginning to influence day-to-day business across the country. From streamlining operations to improving customer experience, companies are leaning in and fast.

What’s Behind India’s Big AI Bet?

The biggest driver? Agentic AI a smarter form of automation that doesn’t just respond to commands, but actively makes decisions. According to the report, 40% of Indian companies are already using it. Another 50% plan to follow within a year.

Most of the current AI investment is going into building reliable infrastructure, especially in sectors like manufacturing, retail, healthcare, and life sciences. These industries run on data and repetitive processes perfect territory for AI to take over the grunt work.

What the Data Says About India’s Big Declaration to Invest in AI

AI isn’t just a buzzword anymore. The report found that:

  • 80% of companies saw real improvements in productivity
  • 73% said AI helped them make faster, better decisions
  • And in terms of use cases? From fraud detection to personalizing customer support, the impact is being felt across both front end and back-end operations

And yet, concerns around data security and trust remain. DebDeep Sengupta from Ui Path and former CEO SAP India & South Asia says businesses want automation, but not at the cost of control. Platforms like theirs are now being built to ensure that AI works with human oversight not without it.

The Road Ahead for India’s AI Revolution

India’s AI journey is just beginning but the momentum is hard to ignore. What we’re seeing now isn’t just about adopting new tech. It’s about reshaping how businesses think, work, and grow.

If the projections are right, AI won’t just be part of India’s digital future it may define it.

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Author

Nishant Richhariya

Hi Readers, I am Nishant. With over 12 years of experience in the corporate world managing administrative operations, I’ve successfully pivoted my career toward the digital frontier. I now specialize in content creation and AI-driven media publishing. As the founder of AIWorldSpace.com, I cover the latest trends in artificial intelligence—bringing insightful news, tool reviews, tutorials, and career-centric AI content tailored for students, professionals, and tech enthusiasts.

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