India Generative AI Market is Expected to Register a 41.31% CAGR Through 2031
India Generative AI
Market is expected to be led by the IT & Telecom segment, driven by its
early adoption of AI technologies and strong demand for automation, coding
assistants, and intelligent customer solutions, during the forecast period.
According to
TechSci Research report, “India Generative AI Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Generative AI Market
was valued at USD 7.31 Billion in 2025 and is expected to reach USD 58.21
Billion by 2031 with a CAGR of 41.31% during the forecast period.
A key driver of the India
Generative AI Market is the rising adoption of AI solutions by Indian
enterprises undergoing rapid digital transformation. Businesses across sectors
such as finance, retail, healthcare, education, and logistics are embedding generative
AI into their core operations. Applications include automated report
generation, intelligent customer support, dynamic content creation, and
internal code generation. These use cases not only improve productivity but
also significantly reduce costs, leading to fast ROI and greater
executive-level buy-in. As of 2024, over 65% of large Indian enterprises had
adopted at least one generative AI application in their operational workflows,
up from just 28% in 2022. This dramatic rise highlights growing trust in
generative AI’s ROI, particularly in content automation, customer service, and
coding—accelerating mainstream adoption across core business functions.
As Indian firms move beyond
experimentation and pilot phases, generative AI is becoming a strategic
priority. Companies are investing in internal AI labs, hiring AI-specialized
teams, and collaborating with technology vendors to create custom generative solutions.
Indian IT service giants are also offering generative AI platforms to their
global clientele, further validating the technology’s business value. With
proven use cases and measurable efficiency gains, enterprise adoption will
continue to grow, cementing generative AI as a critical driver of India’s
innovation economy.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Generative AI Market.”
Based on End-Use, the Media
& Entertainment segment emerged as the fastest-growing end-use segment in
the India Generative AI Market, fueled by increasing demand for AI-driven
content creation, personalization, and immersive user experiences. Generative
AI is transforming how content is produced, edited, and distributed, enabling
creators and media houses to scale content output while reducing time and
costs. From script writing and voice synthesis to video editing and deepfake
moderation, generative models are streamlining production workflows and
expanding creative possibilities.
Streaming platforms, digital
advertising firms, and social media influencers in India are leveraging
generative AI tools to deliver hyper-personalized and multilingual content to
diverse audiences. Additionally, media organizations are using AI for real-time
news generation, virtual anchors, and synthetic media experiences, enhancing
viewer engagement and content reach. The rise of regional OTT platforms and
demand for localized content have further accelerated AI adoption.
As media consumption habits
shift towards digital and interactive formats, the need for scalable and
intelligent content generation tools continues to grow. With supportive
infrastructure and growing investment in creative AI tools, the Media &
Entertainment segment is expected to sustain its momentum in the years ahead.
Based on Region, North India
emerged as the fastest-growing region in the India Generative AI Market in 2025,
driven by a surge in digital transformation initiatives across states like
Delhi, Haryana, Uttar Pradesh, and Punjab. The region is witnessing rapid
adoption of generative AI across industries including education, public
services, healthcare, and fintech. Government agencies and private enterprises
are increasingly using AI to automate administrative processes, deliver citizen
services, and improve user experiences, fueling regional demand.
The presence of major
educational institutions and research centers has created a strong base of
technical talent, accelerating the development and deployment of generative AI
solutions. Startups based in cities such as Noida and Gurugram are actively innovating
in areas like AI-driven content generation, customer support automation, and
Indian language processing. These innovations are attracting domestic and
foreign investments, further strengthening North India’s role in the national
AI ecosystem.
Favorable state-level
policies, digital infrastructure enhancements, and collaborations with global
technology providers are contributing to the region’s fast-paced growth. With
continued policy support and public-private partnerships, North India is expected
to remain a vital contributor to India’s generative AI expansion over the
coming years.
Major companies
operating in the India Generative AI Market are:
- Google LLC
- Microsoft Corporation
- Amazon.com, Inc.
- OpenAI, Inc.
- IBM Corporation
- Tata Consultancy Services Limited
- Infosys Limited
- Wipro Limited
Download Free Sample Report
Customers can
also request 10% free customization on this report.
“The India Generative AI
Market is poised for robust growth driven by increasing enterprise adoption,
rising demand for multilingual AI applications, and significant government and
private sector investments. With expanding use cases across healthcare, education,
finance, and retail, generative AI is expected to become a key pillar of
digital transformation. Advancements in local language models, affordable cloud
infrastructure, and talent development initiatives will further accelerate
scalability. The emergence of Indian startups and strategic partnerships with
global tech leaders will fuel innovation, positioning India as a leading hub
for generative AI solutions tailored to its diverse and rapidly digitizing
economy.” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based management consulting firm.
“India Generative AI Market Segmented By Component
(Software, Services), By Technology (Generative Adversarial Networks,
Transformers, Variational Auto-encoders, Diffusion Networks), By End-Use (Media
& Entertainment, BFSI, IT & Telecom, Healthcare, Automotive &
Transportation, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of India Generative
AI Market and provides statistics & information on Market size, structure
and future Market growth. The report intends to provide cutting-edge Market
intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the India Generative AI Market.
Contact
TechSci Research
LLC
420 Lexington Avenue,
Suite 300, New York,
United States-
10170
Tel: +13322586602
Email: sales@techsciresearch.com
Website: www.techsciresearch.com