Santhosh Viswanathan, VP and MD, Intel, India Region
| Photo Credit: Special Arrangement
AI spending in India is forecast to grow at an annual average rate of 31.5%, hitting $5.1 billion by 2027, the highest CAGR among eight markets surveyed, as per a joint report by Intel and IDC unveiled on Tuesday.
“The manufacturing industry is anticipated to play a pivotal role in driving the country’s economic expansion, particularly within sectors such as electronics and consumer goods,” the report said.
The eight markets surveyed were Australia, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan.
According to the report, the BFSI (Banking, Financial Services, and Insurance) and manufacturing sectors are emerging as the top spenders in India.
(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)
Indian government has earmarked $30.7 million in FY 2024-25 to establish three centers of excellence in AI in the country focusing on agriculture, health, and sustainable cities.
Currently, India stands as an AI Practitioner (stage 2), according to the Intel and IDC joint study.
The report anticipates enterprise spending on AI to show the highest growth rate amongst the surveyed markets.
AI software sector will be the primary driver of overall market growth, reaching $2.6 billion by 2027, with AI infrastructure spending projected to hit $733 million by the same year.
While 80% of surveyed large organisations utilise AI/ML to enhance business outcomes, only 6% view their AI adoptions as central to their competitiveness, the report said.
“With talent pool, frugal innovation and data at scale, India stands poised to lead the global AI revolution. India’s commitment to AI, underscored by its proactive approach, is driving transformative growth. This positions India it as a frontrunner in shaping the future of this technology,” said Santhosh Viswanathan, VP and MD, Intel, India Region.
