Indian companies are fast-tracking their AI investments. The country’s AI technology spending will reach $10.4 billion by 2028, according to IDC Info Brief and UiPath. This represents a 38% annual growth rate from 2023. Business leaders across manufacturing, retail, healthcare, and life sciences are driving this transformation.
Why It Matters Now Around 40% of Indian organizations have already implemented agentic AI. Nearly 50% plan to adopt it within the next 12 months, as reported in the joint study. The benefits are clear and measurable. About 80% of Indian companies report that agentic AI boosts productivity. Another 73% see improved decision-making capabilities.
“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,” said Debdeep Sengupta, Area Vice President at UiPath.
Market Impact in India Companies are prioritizing foundational infrastructure investments in 2025. They’re spending on enterprise automation and multilingual AI models. This shift marks a move from AI experimentation to large-scale implementation.
Three key factors fuel this adoption wave. A tech-savvy workforce leads the charge. Expanding digital infrastructure supports growth. Government-backed initiatives provide additional momentum. The applications span both front and back-office operations. About 69% of Indian organizations use agentic AI for productivity enhancement. Another 59% focus on personalized customer engagement. About 57% apply it for risk and fraud detection.
Strategic Advantage Industries, which is heavily reliant on data shows the strongest adoption patterns. Manufacturing companies use AI for repetitive decision-making cycles. Retail and wholesale businesses streamline operations. Healthcare organizations improve patient outcomes. Life sciences companies accelerate research processes.
“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.
Risks and Considerations Despite rapid adoption, challenges persist across the market. Trust and security remain primary barriers to implementation. Organizations need robust governance frameworks for responsible deployment. Data security concerns affect 47% of Indian companies. Ethical and regulatory issues worry another 47% of businesses.
What Business Leaders Should Know: The competitive landscape is shifting rapidly across India. Organizations willing to invest show strong returns on investment.
“Becoming an AI-powered business is now a must, not a choice.” — Deepak Giri, Associate Vice President at IDC Asia/Pacific.
Business leaders must focus on transparent human-agent ecosystems. They need automation solutions with robust governance frameworks. Strict compliance with data security standards remains essential. The path forward requires strategic planning and careful implementation.
Companies must evaluate agentic tools that scale with organizational needs. Integration with existing systems and applications determines success. As Indian organizations embrace these solutions, the transformation accelerates. The focus on building foundational infrastructure positions companies for long-term growth. Those who act now gain competitive advantages in an increasingly digital marketplace.
