KPMG in India has released a report titled, “Artificial Intelligence (AI) for Bharat: Innovation and Inclusion at Scale”. It outlines India’s rapidly advancing AI landscape and the nation’s emergence as one of the world’s most scalable, inclusive and cost‑efficient AI innovation ecosystems.
The report highlights how India is transitioning from digital transformation to AI-driven growth, underpinned by strong public digital infrastructure, a deep and expanding talent pool, and sustained policy momentum. With AI projected to unlock USD 1.7 trillion in economic value by 2035, India is positioned to accelerate its Viksit Bharat 2047 vision through technology-led productivity, innovation and inclusion.
Key highlights from the report:
- India ranks 3rd globally in AI competitiveness, driven by decades of investment in digital public infrastructure (DPI), skilling and internet penetration.
- Over 38,000 Graphics processing units (GPUs) have been deployed across the country, strengthening access to cost-efficient compute for startups, researchers and public sector innovators.
- India’s population-scale digital systems—UPI, Aadhaar, DigiLocker, Account Aggregator and eSanjeevani—are fuelling trusted, real-time AI use cases across citizen services, finance, commerce and healthcare.
- Small Language Models (SLMs) are emerging as India’s unique innovation pathway, enabling low-cost, multilingual, on-device AI that works even in low‑connectivity environments.
- AI adoption across key sectors is entering a scaled deployment phase, with India outpacing global peers in delivering measurable AI Return on Investment (ROI) across manufacturing, BFSI and retail.
- The government’s IndiaAI Mission, combined with sector-specific COEs and robust incentives for semiconductor and data centre ecosystems, is accelerating sovereign digital capability and establishing India’s role as a leading regional AI hub
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