India’s AI technology spending is estimated to reach $10.4 billion in 2028, with an annual growth rate of 38%, a report said on Thursday.
Around 40% of organisations in the country have already implemented agentic AI, and about 50% of them are planning to use the technology within the next 12 months, IDC InfoBrief and UiPath said in a joint report.
In 2025, AI investments are focused on building the basic infrastructure required to power transformative, high-value use cases.
According to the report, the adoption is growing, fueled by a tech-savvy workforce, expanding digital infrastructure, and government-backed initiatives.
Organisations’ spending on enterprise automation, multilingual AI models, and agentic deployments is driving this momentum further.
The benefits are already visible, as 80% of Indian companies say that agentic AI boosts productivity, while 73% say it improves decision-making, the report said.
According to the report, agentic AI is gaining strong traction across the manufacturing, retail and wholesale, healthcare, and life sciences industries, which heavily rely on data and repetitive decision-making cycles.
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.”
“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,” Sengupta added.
About 69% of Indian organisations are using agentic AI to enhance productivity, 59% to drive personalised customer engagement, while 57% apply it to risk and fraud detection, highlighting how agentic AI is being used across front and back-office functions, the report stated.
IDC Asia/Pacific Associate Vice President Deepak Giri said, “Becoming an AI-fueled business is no longer an option in today’s unpredictable climate. For many organisations, it’s fast becoming a strategic necessity.”
“Across the region, organisations are embracing agentic AI and agentic automation at scale,” Giri added.