Home Industry Compliance and Regulatory Technology India Set to Lead AI Revolutio...

India Set to Lead AI Revolution with Projected 7% of Economic Growth

Compliance and Regulatory Technology

Economic growth, Nasscom, Development, Research

Business Honor
08 October, 2024

Strong Economic Growth and Support from the Government Enhances AI Ambitions in India

According to Nomura, India is all set for a revolution in the space of AI with strong economic growth of 7% a year for the next five years. India's AI market is expected to rise annually at a CAGR of 25-35 percent and reach $17 billion by 2027, a forecast considered by Nasscom. The government's commitment to the India AI Mission, with a five-year budget of Rs 10,372 crore, underscores this ambition.

Asia Pacific would lead the GenAI wave, spearheaded by India Inc., and as analysts point out, this might just work in favor of, or weigh down, the warehouse and logistics sector - depending on how much companies utilize it: if supply chains haven't been streamlined as much by companies like PandoAI as yet, and if GenAI makes it possible to foretell what kind of disruption might come next and the chance to reveal insightful information. All of this, however, comes at the cost of large chucks in terms of talent development, computing infrastructure, and research and development. India generates 20% of the world's data, but owns just 2% of the world's data centers today.

Instilling strong governance frameworks and adhering to norms of ethics Amitabh Kant, G20 Sherpa for India emphasizes utmost importance for creating trust in AI. Hence, consumer confidence will be derived, and growth in AI shall catch up with social justice. India is at the cusp of a fork in the global AI landscape. Strong government support, business engagement, and social purpose underpin the immense opportunities that lie ahead.