AI market size India 2023, by sector

The AI market size in India reached more than 4.1 billion U.S. dollars in 2023. Among all the segments, machine learning had the largest share at 2.7 billion dollars. Artificial intelligence has been responsible for drastic changes in the technology sector where it can greatly improve productivity through process simplification and automation. It is also an integral part and one of the fundamental bases of Industry 4.0.

IT industry in India

IT industry in India is a huge industry which consists of information technology services, consulting, and outsourcing. India’s IT services industry was born in Mumbai in 1967 when Tata Consultancy Services was established. India made up to more than 19 percent of the global IT spending in financial year 2021. Within the global IT industry, India is famous for its IT outsourcing services, and with governmental support and foreign investments, the industry is also developing technologies relative to AI and IoT.

AI technologies

The main branches of an AI ecosystem are machine learning, robotics, artificial neural networks, and Natural Language Processing (NLP). In machine learning, software programs run through existing data, and apply the learned knowledge to new data or to predict data. In the field of robotics, it develops and trains robots for various applications. A prominent example is autonomous vehicles, though the level of autonomy varies, it was estimated that between 2024 and 2025, fully autonomous cars could be seen in the market.