With many sectors rapidly adopting AI, it’s not a question of if but how businesses will incorporate AI into their operations. India is already among the leading countries in terms of AI integrations. Infosys, Tech Mahindra, and Persistent Systems are some of the top companies in India that are enhancing operational efficiency and improving customer experiences through their unique AI solutions.
In this post, we’ll explore the top AI companies in India and look into their contributions to the nation’s AI market growth. We’ll also discuss government initiatives like IndiaAI and the AI task force that are working towards AI innovation and broader market adoption.
The AI industry in India is undergoing a major shift, with businesses across sectors recognising its immense potential. With a market valuation of more than $28 billion by 2030, growing at an annual rate of 28 percent, it reflects the future potential of AI in India. But beyond the numbers, what truly stands out is AI’s impact on real-world applications. From healthcare and finance to retail and manufacturing, AI is becoming an indispensable part of everyday operations.
Today, companies use AI to make smarter business decisions, automate processes, and enhance customer experiences. The increasing push for digital transformation, the rise of big data, and government-backed AI initiatives further fuel this growth.
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While the momentum is strong, key areas like data privacy, infrastructure, and workforce development need attention to ensure the technology’s long-term success. With rapid AI adoption, the top AI companies in India are set to explore the endless possibilities for innovation and progress.
How is the Government shaping the AI industry in India
The Indian government is actively shaping the AI sector via a number of initiatives and substantial investments, aiming to position India on par with other leading countries like the US and China. These efforts focus on driving economic growth, enhancing public services, and improving the citizens’ quality of life through AI.
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National AI Portal
The National AI Portal, IndiaAI, is a central hub for all AI-related activities in India. It is a joint initiative by the Ministry of Electronics and Information Technology (MEITY), the National e-Governance Division (NeGD), and NASSCOM. The portal aims to create and promote a unified AI ecosystem in India, providing information, resources, and a platform for collaboration among various stakeholders. Its primary focus is on knowledge sharing and emerging AI trends across different sectors, contributing to the growth of the AI industry in India.
Union Budget 2025-26
The recently announced Union Budget 2025-26 also underscored the government’s goal of promoting AI in India. It allocated ₹500 crores to establish a Centre of Excellence (CoE) in AI for Education, which aims to enhance skill development, personalise learning, and transform the academic and future job market. The budget also suggested a ‘Deep Tech Fund of Funds’ and assigned ₹20,000 crores to improve research, development, and innovation in startups.
National Strategy for AI (NSAI)
NITI Aayog launched the National Strategy for AI in June 2018. With an ideology of AI for All, the strategy focuses on inclusive growth, societal transformation, and large-scale adoption across sectors. It supports and nurtures the AI industry in India by promoting research and developing guidelines for responsible AI. The strategy also emphasises that India’s economy could reach ₹95,700 crores by 2035 due to emerging AI trends in the industries.
Skill development programmes
The NSAI also stresses the importance of re-skilling and training initiatives to prepare the workforce for AI-related jobs. It discusses ways to harness AI by creating a national skills qualification framework with standards for these jobs. The strategy also encourages colleges and schools to integrate emerging AI trends into their curriculum. NSAI’s fiscal support for AI research centres and PhD fellowships encourages international collaboration in study and partnerships.
IndiaAI Mission
The IndiaAI Mission, approved with a budget of around ₹10,372 crores, seeks to establish a comprehensive AI ecosystem via strategic partnerships and programmes. It focuses on democratising computing access with 10,000+ Graphics Processing Units (GPUs), improving data quality, and developing indigenous AI capabilities. The mission supports AI startups through funding and promotes ethical AI development and deployment. Implemented by the IndiaAI Independent Business Division under Digital India Corporation, it enables innovation and creates employment opportunities across the private and public sectors.
AI task force
In August 2017, the Union Ministry of Commerce and Industry established the AI Task Force to integrate AI into India’s core systems—its economic, political, and legal frameworks. This initiative could position India as a leader in emerging AI trends while successfully solving socio-economic challenges across the manufacturing, finance, agriculture, environment, education, and healthcare sectors. The task force guides the direction of AI policy development in India, focusing significantly on accessibility for all.
Domestic GPU development
India is likely to develop its own GPU within the next 3-5 years by building upon available chipsets. Looking at the high global demand for GPUs to power AI models, the government is rolling out 18,000 high-end GPU-based compute facilities for AI development. This GPU procurement, under the IndiaAI Mission, is offering researchers, startups, and top AI companies in India access to high-end GPUs for ₹150 per hour and lower-end GPUs for ₹115.85 per hour.
