India’s AI technology spending is projected to grow at an annualised rate of 38 per cent from 2023 to reach $10.4 billion in 2028
NEW DELHI — India’s AI technology spending is projected to grow at an annualised rate of 38 per cent from 2023 to reach $10.4 billion in 2028, a report said on Thursday.
Around 40 per cent of organisations in India have already implemented agentic AI, and close to 50 per cent are planning to use the technology within the next 12 months, IDC InfoBrief and UiPath said in a joint report.
In 2025, AI investments are focused on building the foundational infrastructure required to power transformative, high-value use cases.
According to the report, the adoption is surging, fueled by a tech-savvy workforce, expanding digital infrastructure, and government-backed initiatives.
Organisations' spending on enterprise automation, multilingual AI models, and agentic deployments is driving this momentum further.
The benefits are already visible, as 80 per cent of Indian companies say agentic AI boosts productivity, while 73 per cent say it improves decision-making, the report said.
According to the report, agentic AI is gaining strong traction across the manufacturing, retail and wholesale, healthcare, and life sciences industries, which heavily rely on data and repetitive decision-making cycles.
"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," said DebDeep Sengupta, Area Vice President, South Asia, UiPath.
Our agentic automation platform directly addresses these challenges, breaking down barriers to enterprise AI adoption by enhancing security and compliance, improving accuracy and reliability for agentic outcomes, Sengupta added.
About 69 per cent of Indian organisations are using agentic AI to enhance productivity, 59 per cent to drive personalised customer engagement, while 57 per cent apply it to risk and fraud detection, highlighting how agentic AI is being applied across front and back-office functions, the report highlighted.
“Becoming an AI-fueled business is no longer an option in today’s unpredictable climate. For many organisations, it's fast becoming a strategic necessity," said Deepika Giri, Associate Vice President, IDC Asia/Pacific.
Across the region, organisations are embracing agentic AI and agentic automation at scale, Giri added.