TLDR: India’s spending on Artificial Intelligence (AI) technology is forecast to surge to $10.4 billion by 2028, growing at an annual rate of 38% from 2023. This growth is largely fueled by the rapid adoption of ‘agentic AI,’ with 40% of Indian organizations already implementing it and nearly 50% planning to do so within the next year. The focus for 2025 AI investments is on building foundational infrastructure for high-value use cases, with significant benefits observed in productivity and decision-making across various industries.
India’s Artificial Intelligence (AI) technology sector is poised for substantial growth, with spending projected to hit $10.4 billion by 2028. This represents an impressive annualized growth rate of 38% from 2023, according to a joint report by IDC InfoBrief and UiPath released on Thursday, August 7, 2025. The report highlights a significant shift towards advanced automation technologies across the nation.
A key driver of this expansion is the widespread adoption of ‘agentic AI.’ The report indicates that approximately 40% of Indian organizations have already integrated agentic AI into their operations, and an additional 50% are planning to implement this technology within the next 12 months. This rapid embrace underscores India’s commitment to leveraging AI for business transformation.
In 2025, AI investments are primarily directed towards establishing the foundational infrastructure necessary to power transformative and high-value AI applications. The surge in AI adoption is attributed to several factors, including India’s tech-savvy workforce, its expanding digital infrastructure, and robust government-backed digital initiatives. Furthermore, increased organizational spending on enterprise automation, multilingual AI models, and agentic deployments is accelerating this momentum.
The benefits of agentic AI are already evident across Indian enterprises. The report reveals that 80% of Indian companies utilizing agentic AI have reported a boost in productivity, while 73% have experienced improved decision-making processes. This technology is gaining considerable traction in data-intensive sectors such as manufacturing, retail and wholesale, healthcare, and life sciences, where repetitive decision-making cycles are common.
DebDeep Sengupta, Area Vice President, South Asia, UiPath, commented on this trend, stating, ‘Agentic automation is rapidly redefining business operations across India. While enterprises in this region are embracing the full potential of AI agents to streamline workflows and autonomously execute complex business processes, trust and security remain barriers to widespread implementation.’ He added that UiPath’s agentic automation platform aims to address these challenges by enhancing security, compliance, accuracy, and reliability of agentic outcomes, thereby breaking down barriers to enterprise AI adoption.
The report further details the specific applications of agentic AI within Indian organizations: 69% are using it to enhance overall productivity, 59% to drive personalized customer engagement, and 57% are applying it for risk and fraud detection. This demonstrates the versatile role of agentic AI across both front-office and back-office functions.
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Deepika Giri, Associate Vice President, IDC Asia/Pacific, emphasized the strategic importance of AI, noting, ‘Becoming an AI-fueled business is no longer an option in today’s unpredictable climate. For many organizations, it’s fast becoming a strategic necessity.’ She also highlighted that companies across the Asia-Pacific region are adopting agentic AI and automation at scale, positioning themselves for future growth.
