Overview
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India ranks third in AI competitiveness and stands as the second-largest contributor to GitHub AI projects, showcasing robust developer talent and innovative capacity.
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The IndiaAI Mission has successfully integrated over 38,000 GPUs available at a subsidized rate of Rs. 65 per hour, alongside an announcement in February 2026 for an additional 20,000 GPUs to widen nationwide access to AI.
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The AIKosh platform currently houses more than 9,500 datasets and 273 models, while twelve distinct teams have been chosen to create homegrown foundational AI models.
Transitioning from a mere supplier of technology talent, India is now actively helping shape the global AI economy. The nation successfully combines a massive workforce of engineers, publicly funded computing power, domestic language models, and significant participation in international policy dialogues. Projections point toward substantial economic growth; a joint study by IBM and IndiaAI estimates that artificial intelligence could contribute more than USD 500 billion to the economy by 2030, while a government backgrounder projects a potential USD 1.7 trillion impact by 2035. This report examines India’s current standing, the catalysts behind its ascent, and the existing gaps that require attention.
A Deep Base of Talent and Technology Firms
India enters the artificial intelligence arena equipped with a solid foundation. According to a PIB backgrounder published in December 2025, over 6 million individuals are employed within the technology and AI ecosystem, home to more than 1,800 Global Capability Centres—over 500 of which concentrate specifically on AI. The country hosts roughly 180,000 startups, with nearly 89% of those launched in the previous year incorporating AI into their products or services. Furthermore, Stanford’s 2025 Global AI Vibrancy Tool positions India third globally in AI competitiveness, and the same backgrounder highlights Indian developers as the second-largest contributor base for AI projects hosted on GitHub.
Also Read: India’s Next Industrial Boom: How India is Building a New Technology Economy
Public Spending on Computing Power
Given the high costs associated with computing resources, India has opted for a model of broad public access. In March 2024, the Cabinet sanctioned the IndiaAI Mission with a financial outlay of Rs. 10,371.92 crore spanning five years. While the initial goal targeted 10,000 GPUs, the initiative has expanded to 38,000 units accessible to developers at a subsidized rate of Rs. 65 per hour. Additionally, the national dataset platform AIKosh maintains more than 5,500 datasets and 251 AI models distributed across 20 distinct sectors. These measures reduce entry barriers for startups, researchers, and students who would otherwise struggle to afford such infrastructure.
Homegrown Models for Indian Languages
India is actively developing artificial intelligence tailored to its unique linguistic and domestic requirements. Unveiled in June 2025, BharatGen represents the first government-funded model capable of handling text, speech, and images while supporting 22 Indian languages. Furthermore, IndiaAI has chosen twelve startups—including Sarvam AI—to construct large-scale models trained specifically on local data. Bhashini, the public translation utility, accommodates 20 languages and has surpassed one million downloads. According to the World Economic Forum, India’s digital public infrastructure provides AI applications with an accelerated path to scale, facilitating digital economic participation for non-English speakers.
How Indians Use AI at Work
Usage analytics highlight both distinct strengths and notable limitations. An India brief published by Anthropic analyzed approximately one million conversations on Claude.ai from November 2025, revealing that India accounts for 5.8% of worldwide usage, trailing only the United States. Software development tasks comprise 45.2% of usage by Indian individuals—the highest proportion globally—with users reporting efficiency gains that compress tasks typically requiring 3.8 hours down to roughly 15 minutes. This represents a 15-fold speedup compared to a 12-fold average globally. Conversely, on a per capita basis, India places 101st among 116 nations, and four specific states account for over half of total usage. These metrics, however, reflect activity on a single platform.
The Economic Value and the Readiness Gap
While forecasted financial gains remain substantial, their realization depends heavily on how effectively enterprises integrate artificial intelligence into operations. A survey of 1,500 executives conducted by IBM and IndiaAI indicated that approximately 80% expect AI investment to shape economic growth. Yet, only 15% of organizations are currently scaling AI functions across their operations while the remainder rely on pilot phases, and roughly 30% of employees possess the specific AI literacy demanded by businesses.
A Growing Voice in Global AI Policy
New Delhi played host to the AI Impact Summit from February 16 to 21, 2026, marking the inaugural event of the series convened in the Global South. Delegations representing more than 80 countries participated, and nearly 90 nations and organizations endorsed the nonbinding New Delhi Declaration on trusted and inclusive AI. Reported investment commitments exceeded USD 250 billion, featuring a pledge by Reliance Industries to deploy USD 110 billion over seven years toward sovereign AI infrastructure. Previously, the AI for India 2030 initiative—co-hosted by MeitY, Nasscom, and the World Economic Forum—established an AI Playbook and an AI Sandbox aimed at directing responsible adoption within agriculture and small enterprises.
Gaps India Needs to Close
Future progress hinges on several explicit priorities requiring coordinated action from policymakers and industry leaders.
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Expand AI utilization beyond software engineering and the four primary states, ensuring equitable access for farmers, educators, and small-scale businesses.
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Elevate AI literacy among the workforce, as fundamental skills dictate the economic value organizations can extract from the technology.
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Enhance enterprise data architectures and governance frameworks, which the IBM study links directly to successfully transitioning from pilot projects to full-scale deployment.
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Develop voice-enabled applications in local dialects tailored for informal laborers, as outlined in the NITI Aayog strategic roadmap.
Also Read: How AI is Building a New Surveillance Layer for the Global Crypto Economy
Final Thoughts
India’s position in the global AI economy is anchored in scale, strategic public investment, and a deliberate commitment to domestic empowerment. The country possesses the requisite talent, computational capacity, and diplomatic standing to shape the worldwide trajectory of artificial intelligence. Whether projected economic benefits materialize will rely on the breadth of adoption, the speed at which the workforce acquires AI competencies, and the responsibility with which organizations transition from testing phases to enterprise-wide implementation. Successfully executing these steps could allow India to direct the AI economy as a leading participant that simultaneously serves its population and presents a viable framework for other emerging nations.
FAQ’s
1. What is driving India’s AI growth?
India’s AI growth is being driven by its large technology workforce, public computing infrastructure, domestic AI models and strong startup ecosystem. The country is also gaining influence through international AI policy discussions and industry partnerships.
2. How is India expanding AI computing access?
The IndiaAI Mission has onboarded more than 38,000 GPUs for shared use. The government has also announced another 20,000 GPUs, helping startups, researchers and other eligible users access computing resources at subsidised rates.
3. What are India’s homegrown AI models?
India is developing indigenous AI systems for local needs and languages. BharatGen supports 22 Indian languages, while the IndiaAI Mission has selected twelve teams to develop foundational models using Indian data and use cases.
4. How are Indians using AI at work?
Anthropic’s 2026 India study found that India represented 5.8% of global Claude use. Software development accounted for 45.2% of usage, with adoption concentrated in a handful of major states.
5. How is India influencing global AI policy?
India hosted the AI Impact Summit in February 2026, attracting delegations from more than 100 countries and organisations. The New Delhi Declaration gained support from 92 countries and organisations, strengthening India’s role in global AI discussions.
