India's artificial intelligence (AI) market, valued at $8.58 billion in 2024, is on the brink of significant expansion, with projections suggesting it will soar to $22 billion by 2027. The chatbot segment is anticipated to reach a remarkable $1.26 billion by 2030, according to a report released last year by NASSCOM-EY.
Experts believe that these platforms cater to
India’s vast, multilingual population—an area where foreign AI solutions often fall short.
Pranav Mistry, founder of TWO AI and ChatSutra, which offers communication services in 50 languages and is supported by the Ambani group’s Reliance Jio, highlighted the significance of
investing in domestic AI models. "As domestic neural AI networks gain traction, investing in them is crucial for addressing India’s linguistic, cultural, and economic needs, while ensuring the country's leadership in the global AI ecosystem," Mistry told Sputnik India.
Mistry highlighted that domestic AI platforms utilize local languages and cultural contexts to develop solutions that more effectively meet the needs of Indian users and
energise technological innovations and economic growth.
"Supporting local AI models allows investors to drive innovation tailored to Indian markets, unlock untapped opportunities, and foster economic growth while reducing dependency on foreign technologies," Mistry said.
Ankush Sabharwal, founder and CEO of CoRover and BharatGPT, India's homegrown generative AI, stressed the transformative potential of domestic neural AI networks. He noted that these networks can automate processes, streamline workflows, and empower businesses to cut costs while enhancing productivity and innovation for sustainable growth.
Moreover, experts believe AI models tailored to India’s needs will transform sectors like healthcare, education, agriculture, and governance.
“For example, AI diagnostic tools can enhance healthcare outcomes, while AI-driven educational platforms can improve learning experiences. These networks can also address India's social and economic challenges, such as limited access to healthcare and education, by creating solutions that improve quality of life for communities,” Sabharwal explained.
With over 1,600 languages spoken across India, AI models supporting multiple Indian languages are critical to enhancing user experience and accessibility.
Mistry points out that investing in domestic AI will reduce reliance on imported technologies, generate jobs, and strengthen India’s technical capabilities.
"Scalable, cost and energy-efficient models like those we are building ensure AI is advanced yet inclusive, directly contributing to technological advancement and the long-term economic future of India," Mistry concluded.