AI in India: At a time when artificial intelligence is reshaping business operations globally, Indian companies are adopting AI at a faster pace than global peers and reporting stronger returns.
Last month, Union IT Minister Ashwini Vaishnaw said that India's AI Impact Summit had secured investment commitments of over USD 250 billion in infrastructure. He added that the summit saw participation from over 5 lakh visitors, reflecting strong domestic and global engagement with India's AI push.
Nearly 60% of India's firms already use some form of AI: IMF
The International Monetary Fund (IMF) in its Country Focus blog said that nearly 60 per cent of Indian firms already use some form of AI, which is well above global averages.
"AI can make businesses more efficient, speed up technology diffusion, and strengthen innovation. But adoption remains uneven: employers cite skill shortages, inadequate tools, and integration challenges. Ensuring that AI enhances productivity without widening disparities requires further investment in India's already strong digital infrastructure, training workers, and protecting those who may lose jobs," the IMF blog post read.
IMF staff simulations show that AI-driven productivity gains, scaled by AI preparedness and exposure, could raise total factor productivity in emerging Asia (including India) by roughly 0.3 to 3 percentage points over a decade, depending on sectors and scenarios.
The blog post further said that India has already laid important foundations for productivity-enhancing reforms and can build on a world-class digital public infrastructure. "Unlocking the next wave of growth requires a coordinated agenda: easing regulatory burdens so firms can grow, boosting innovation and university-industry collaboration to promote innovation, strengthening business dynamism, and enabling labor to move to higher-productivity sectors."
With these reforms, India can convert its structural strengths into sustained productivity gains, supporting its endeavors to become an advanced economy, the post read.
India AI Impact Summit 2026
India hosted the AI Impact Summit 2026 last month. The summit held at Bharat Mandapam, New Delhi, from February 16 to 21, is the first global AI summit hosted in the Global South. Previous AI summits were held in the UK (2023), South Korea (2024), and France (2025).
The summit witnessed participation from more than 100 countries, including 22 Heads of State or Government, and around 10 international organisations. Participating countries represented regions across Asia, Europe, Africa, the Americas and Oceania. International organisations such as UN agencies and multilateral development banks also participated in it.
At the summit, Prime Minister Narendra Modi unveiled the MANAV Vision (Moral and Ethical Systems, Accountable Governance, National Sovereignty, Accessible and Inclusive, Valid and Legitimate). Tech majors like Google, Microsoft and Nvidia also announced significant investments in India's AI ecosystem.
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