New Delhi: Artificial intelligence is quickly moving from an experimental technology to a major business investment in India.
Large companies are spending money on AI because the technology can potentially reduce costs, improve productivity and create entirely new products. But the biggest change is that Indian companies are now investing not only in AI software but also in the infrastructure required to run it.
The scale of the opportunity is significant. One market estimate puts India’s AI market at about $1.6 billion in 2025, with the potential to reach more than $13 billion by 2034.
Industry estimates also suggest AI could contribute hundreds of billions of dollars to India’s economy over the coming decade if businesses successfully adopt the technology.
Reliance and Adani are among the biggest examples.
Reliance has announced around $110 billion in AI-ready data-centre investment, while Adani has committed $100 billion toward renewable-powered AI infrastructure by 2035.
These investments show why AI is not simply a software story.
Advanced AI models require large data centres filled with high-performance chips. Those facilities need enormous amounts of electricity, cooling systems and high-speed connectivity.
This is where India’s large industrial groups see an opportunity.
Reliance can combine telecom, energy and digital infrastructure. Adani can combine renewable power, data centres, transmission and infrastructure.
Traditional companies are also adopting AI internally. Reliance says AI is already being used across areas including retail merchandising, supply-chain optimisation, media content creation and its oil-to-chemicals operations.
Banks and financial companies are using AI for fraud detection, customer service and risk assessment. Healthcare companies are exploring AI for diagnosis and drug discovery. Manufacturers are using it for predictive maintenance and automation.
The startup ecosystem is also becoming an important part of the story. Indian founders are developing AI products for enterprise software, healthcare, education, customer service and other industries.
The government is supporting this transition through initiatives such as the IndiaAI Mission and the Semiconductor Mission, which aim to strengthen computing capacity, skills and domestic technology infrastructure.
However, investment alone will not make India an AI leader.
The country faces challenges in advanced AI research, access to high-end computing and availability of specialised talent. There are also concerns around data protection, cybersecurity and responsible use of AI.
