India’s spending on artificial intelligence technology is expected to reach 10.4 billion dollars by 2028, growing at an annual rate of 38 per cent, according to a new report released on Thursday.
The joint report by a research firm and a technology company revealed that about 40 per cent of organisations in India have already adopted agentic AI, while nearly 50 per cent plan to implement it within the next year. In 2025, AI investments are largely aimed at building the core infrastructure needed to support transformative and high-value use cases.
The study highlighted that this growth is being driven by a combination of factors including a tech-savvy workforce, expanding digital infrastructure, and government-backed initiatives. Spending on enterprise automation, multilingual AI models, and agentic deployments is further accelerating adoption.
The impact of the technology is already visible. Around 80 per cent of Indian companies report that agentic AI is boosting productivity, while 73 per cent say it is improving decision-making. The report also notes that agentic AI is gaining strong traction in industries such as manufacturing, retail and wholesale, healthcare, and life sciences, all of which depend heavily on data and repetitive decision-making processes.
UiPath Area Vice President DebDeep Sengupta said, “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.” He added, “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.”
The report further revealed that 69 per cent of Indian organisations are using agentic AI to enhance productivity, 59 per cent to improve personalised customer engagement, and 57 per cent for risk and fraud detection. This reflects how the technology is being applied across both front and back-office functions.
IDC Asia Pacific Associate Vice President Deepak Giri said, “Becoming an AI-fuelled business is no longer an option in today’s unpredictable climate. For many organisations, it’s fast becoming a strategic necessity.” He added, “Across the region, organisations are embracing agentic AI and agentic automation at scale.”
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