India’s AI Spending Set For Major Growth, Projected To Surpass $9.2 Billion By 2028
Mumbai: The world’s AI landscape is evolving, and AI spending in India will cross $9 billion by 2028, according to a study by International Data Corporation, released by Qlik on Wednesday.
Highlighting the rapid acceleration of Generative AI adoption in Asia Pacific, including India, the report said that AI spending in India is set to grow at 35 per cent annually, reaching $9.2 billion by 2028.
The report, however, emphasises the need for better data quality, governance, and cloud migration to maximize AI’s potential.
The newly released IDC InfoBrief, commissioned by Qlik and co-sponsored by Amazon Web Services, found that with 36 per cent of enterprises using GenAI and 46 per cent planning investments within 12-24 months, the highest in the region under review, India is emerging as a global AI powerhouse.
However, only 22 per cent of Indian organisations report measurable AI/ML improvements, despite leading the region.
India is on par with Australia and New Zealand, with 20 per cent of organizations possessing advanced AI capabilities, though it lags behind ASEAN, where 27 per cent have reached this stage.
The study highlights data quality as a major barrier, with 54 per cent of Indian organisations citing it as a challenge, surpassing Australia at 40 per cent, ASEAN at 40 per cent, and even the APAC average of 50.4 per cent. Additionally, 62 per cent of Indian organizations recognize the need to improve data governance and privacy policies, while 28 per cent struggle with AI data bias, more than ASEAN at 21.8 per cent and Australia at 20 per cent.
To overcome these challenges, Indian enterprises are investing in data integration, ML deployment platforms, and analytics to establish AI-ready data strategies. Strengthening data integrity, transparency, and compliance is key to successful AI adoption.
“GenAI is transforming industries in India-from compliance in retail to fraud prevention in finance and predictive maintenance in manufacturing,” said Deepika Giri, a top official IDC Asia/Pacific.
“But to unlock its full potential, organisations must prioritize trusted data, robust governance, and infrastructure readiness to scale AI effectively and responsibly.”
Cloud migration is a priority, with 51 per cent of Indian enterprises deploying AI solutions in the cloud. As AI investments grow, 80 per cent of organizations see cloud migration as essential. India leads ASEAN in public cloud adoption, with 40 per cent of enterprises leveraging one or more public clouds, compared to 31 per cent in ASEAN. Additionally, 30 per cent of organizations prefer a hybrid model, a significantly higher proportion than Australia's 19 per cent.
“Indian organisations see cloud adoption as a critical step toward AI success,” says Varun Babbar of Qlik. “To scale AI-driven innovation, businesses need a strong, scalable data infrastructure that supports high-performance AI applications. Enhance data integrity, reduce bias, and strengthen compliance frameworks-ensuring AI delivers meaningful and lasting business value.
Indian Oil Corporation is leveraging Qlik to drive data-driven decision-making at scale. Through its “i-drive” initiative, it tracks over 3,000 KPIs and empowers 10,000 users with self-service analytics. IndianOil is enhancing predictive maintenance, optimizing supply chain efficiency, and improving operational agility. With a strong focus on data integrity and governance, it is ensuring AI delivers sustainability in India’s energy sector.
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