As India approaches Budget 2025, there is a pressing need to maintain the upward trend in investments specific to artificial intelligence (AI) and technology. According to Prashanth Kaddi's analysis, India's GDP growth has rebounded significantly, with the services sector now accounting for 55% of the GDP. The IT sector alone contributes 56% of total services exports, showcasing its vital role in the economy [37ad93f3].
Entering 2025, India's economy is projected to reach approximately $3.5 trillion, with the AI market expected to grow to $17 billion by 2027, reflecting a compound annual growth rate (CAGR) of 25-35% [37ad93f3]. The IT services and Global Capability Centers (GCCs) are also projected to expand to $100 billion by 2030, indicating a robust future for technology-driven sectors [37ad93f3].
The government's commitment to AI is evident, with $6 billion earmarked for AI software aimed at enhancing digital government services by 2027. Notably, the IndiaAI Mission, approved in March 2024, has a budget of $8.8 billion, reflecting the government's strategic focus on AI development [37ad93f3]. For the fiscal year 2024-25, an allocation of INR 551.75 crore has been made to strengthen AI infrastructure, emphasizing the importance of building a solid foundation for future advancements [37ad93f3].
AI applications are being highlighted in critical sectors such as healthcare, agriculture, and education, showcasing the technology's potential to drive innovation and efficiency across various domains [37ad93f3]. Furthermore, India leads the Asia Pacific region in Generative AI adoption, with 93% of students and 83% of employees engaging with this transformative technology [37ad93f3].
As the nation prepares for the upcoming budget, the focus remains on ensuring that investments in AI and technology not only continue to grow but also translate into tangible benefits for the economy and society at large [37ad93f3].