Updated 8 August 2025 at 11:31 IST
India's AI Investment to Grow 38% Annually, Agentic AI Leading the Charge
India's AI investment is projected to grow 38% annually, reaching $10.4 billion by 2028. Agentic AI is driving this surge, with 40% of Indian companies already using it to boost productivity and automation.
India is on the path to becoming a global AI leader. According to a new report by IDC and UiPath, the country is expected to spend $10.4 billion (around Rs 86,000 crore) on AI technology by 2028, with an annual growth rate of 38%.
At the forefront of this increasing adoption is the Agentic AI - the kind of AI that can autonomously make decisions and complete tasks is increasingly becoming popular in India. According to the report, 40% of Indian companies are already using agentic AI, while 50% more plan to start using it within the next year. In 2025, most AI investment will go into building the infrastructure (the tech and tools) needed for more advanced uses.
Why Is AI Growing in India?
The report says AI is growing in India because of a number of reasons like a technoid workforce, a better infrastructure and government backing through AI-friendly policies and projects. Companies are also spending more on automation, multilingual AI models and agentic AI systems.
“Agentic automation is rapidly redefining business operations across India. While enterprises in the country 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 UiPath Area Vice President DebDeep Sengupta.
He added that the agentic automation platform is specifically designed to overcome these challenges, saying, “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.”
Indian Companies Already Seeing Benefits
The report finding reveals that 80% of Indian companies have found that their productivity goes up with the aid of agentic AI. A total of 73% say that it helps in better decision-making. Industries like manufacturing, retail, healthcare, and life sciences seem to be using this technology the most.
IDC's Deepak Giri said, "Becoming an AI-powered business is now a must, not a choice." He added that more and more companies across Asia are using agentic AI at a large scale.
How Indian Companies Use Agentic AI
69% of Indian companies use it to improve productivity, 59%use it for personalised customer service, and 57% use it to find risks or fraud, said the report.
Published By : Priya Pathak
Published On: 8 August 2025 at 11:31 IST