FazTimes Media | August 7, 2025 | New Delhi: India is moving quickly when it comes to advances in technology. For example, by 2028, the country will be spending a lot of money on artificial intelligence (AI). A new report says this spending will reach $10.4 billion. The report was created by IDC InfoBrief and UiPath, and it shows how rapidly Indian industries are adopting automation, smart tools, and digital changes. The report also says that AI spending in India will rise by 38% every year from 2023 to 2028. This is one of the most rapid rates of growth in the world. These numbers aren’t just big numbers; they show a big change in how businesses in India work, help customers, and compete with companies around the world.

A New AI-Driven Era for India

Just a decade ago, many people in India viewed artificial intelligence as something from the future, something only big tech companies in developed countries could use.

Al Jazeera says that AI is no longer just for testing things out all over the world. It's about making it work on a big scale, having real impacts, and changing the way companies work. India is now taking the lead in the Asia-Pacific region when it comes to AI.

A report from IDC and UiPath shows that 40% of companies in India are already using agentic AI, and another 50% plan to start soon. Agentic AI means smart systems that can make choices, carry out tasks, and improve processes without needing constant help from people.

What's Driving India's Growth in AI?

There are several reasons behind the rapid growth of AI in India:

Digital-First Government Policies

Programs like Digital India, Startup India, and the National AI Mission have created a strong base for innovation.

These policies have helped startups grow, drawn in foreign investment, and encouraged research in new technologies.

A young and tech-savvy group of workers

India has one of the youngest workforces in the world, with a median age of only 29.
AI Models That Speak More Than One Language
Indian programmers are making AI models that work with languages spoken in India.
This makes AI more helpful for people and businesses in different parts of the country.

Where the Money Is Going

In 2025, most of the money India spends on AI will go toward making digital systems that can handle more complex uses of AI.

This includes:

AI platforms that run in the cloud
AI-powered analysis tools
More security for digital systems
Data centers, which are special buildings that do a lot of AI work

Companies are spending a lot of money on automating tasks to boost productivity, make things run more smoothly, and cut down on mistakes made by people.

Who’s Using AI—and Why?

AI is being widely used in areas where data and decisions are closely connected:

Retail and Wholesale: Stores are using AI to offer better shopping experiences, automate stock management, and create smart marketing plans.
Healthcare and Life Sciences: Doctors and scientists are using AI to help diagnose diseases, make hospitals run more smoothly, and speed up the discovery of new medicines.
Manufacturing: Factories are using AI to predict when machines need fixing, use smart robots, and check product quality with computer vision to work more efficiently.

DebDeep Sengupta, Area Vice President, South Asia at UiPath, said, “AI-driven automation is quickly changing how businesses operate in India. While companies here are taking full advantage of AI tools, trust and security are still challenges that need to be overcome for wider use.”

The Productivity Dividend

The effect of AI goes beyond just technology—it has a big impact on the economy. 80% of companies in India said they saw improvements in productivity because of agentic AI, and 73% said their decision-making got better.

Many small and medium-sized businesses are using AI to do things like automatically send out invoices, manage their supply chains, and even guess what trends might happen in the market. Rajesh Mehta, who runs a medium-sized logistics company in Ghaziabad, said, “AI helps us stay competitive. We’re not a tech company, but AI tools let us follow deliveries as they happen, spot possible delays, and cut costs. Five years ago, such improvements wouldn’t have been possible.”

Challenges Still Remain

Even though things look positive, the report highlights some important problems that might slow them down:

Data Privacy Concerns: As AI systems gather and look at a lot of user information, people are getting worried about how this data might be used or monitored.

Skill Gaps: Although India has a big IT workforce, there are not enough experts in AI, especially in smaller cities.

“Building ethical and trustworthy AI is just as important as making it smart,” said Deepika Giri, Associate Vice President at IDC Asia/Pacific. “Using AI without proper rules can cause big problems.”

In today's uncertain economy, AI is no longer something extra. It's becoming something businesses must have, especially if they want to grow, stay strong, and work in different markets." Giri said that becoming an AI-driven business isn't just a choice anymore. For many companies, it's now a must-have to keep going."

This change isn't just about keeping up—it's about taking the lead in the digital world. And India, with its mix of skilled workers, strong tech, and big size, is set to be a key player in the global AI scene.

Looking Ahead

As India plans to invest more than $10 billion in AI by 2028, the changes will affect every part of the country, from cities to industries and different kinds of jobs. Whether it's farmers using AI to predict the weather or schools in rural areas using AI tutors, this isn't just about technology—it's about how people's lives will change.

India's progress in AI is happening not only in research centers or offices but also in factories, hospitals, small shops, and call centers—places where real change can take place.

Right now, the world is watching how developing countries handle new and powerful technologies.

India is quietly showing the way, one smart tool at a time.

Stay with FazTimes Media for the latest updates on technology, innovation, and how AI is changing lives across India.

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