Page 26 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

8. AI's presence within Indian organizations has witnessed notable growth: NASSCOM AI Adoption
Index 2.0

2024 AI Adoption Index 2.0 has been released by NASSCOM highlights the significant advancements and
opportunities in India's AI landscape. The growth in the Indian AI market is expected to mirror the
global AI market growth rate of 25-35% over the next 3-4 years with AI technologies evolve rapidly
driven by the transformative impact of Generative AI. The Index 2.0 study provides in-depth insights into
the AI adoption trends across seven sectors and 500 surveyed companies covering BFSI, CPG and Retail,
Healthcare, Telecom, Media and Entertainment, Energy and Utilities, Manufacturing, and Transport and
Logistics—covering 75% of India's GDP.

The report remarks that AI is rapidly emerging as an integral part of India's digital economy
transformation. Integrating AI technologies is revolutionizing organizational functions and bringing
about automation-led productivity enhancements. From ubiquitous virtual assistants to seamless
integration with processes and decision systems, AI's presence within Indian organizations has
witnessed notable growth.

Strong national-scale support pillars have emerged – the centrally-funded IndiaAI mission, supportive
policy framework, AI and GenAI-ready tech services industry and startup ecosystem, and India's 2nd
largest installed AI talent base.

The report states that India's 2024 AI adoption index score is 2.47 on a 4-point scale, compared to 2.45
in 2022, and 87% companies are in the middle stages of Enthusiast and Expert AI adopters. There is a 2X
rise in the number of companies in the Expert stage in 2024 compared to 2022, the next maturity stage
after Enthusiast, where scaled AI adoption is observed.

Figure 15: India’s Digital Economy in this Tech age Depends on World-Leading AI Focus

Source- NASSCOM AI Adoption Index Page | 25

March 2025