India AI Market Projected to Reach $4.36 Billion by 2031

15 Sept 2026, 10:02 pm · 19d ago · 1 min read · MarketsandMarkets

The Indian artificial intelligence market is projected to expand significantly from $778.7 million in 2026 to $4,365.7 million by 2031, growing at a compound annual growth rate of 27.9%, according to a new report by MarketsandMarkets. The accelerated adoption is fueled by comprehensive digital transformation initiatives across government bodies, enterprises, and tech startups. Key vertical demand includes healthcare, finance, public administration, and smart city infrastructure. The growth trajectory highlights rising enterprise capital allocation toward automation, generative AI tools, and foundational data infrastructure across the domestic tech ecosystem.