- India largest AI market driven by scale affordability and youth
- India largest AI market gains boost from telecom partnerships
Delhi/Hyderabad, Dec 17 (Maxim News): India largest AI market status has been highlighted in a new analysis by Bank of America. The report said India has emerged as the world’s largest and most active market for large language model adoption. The findings were released on Wednesday. They show that India now leads globally in user adoption of popular AI applications.
According to the analysis, India ranks first in the number of users for AI apps such as ChatGPT, Gemini and Perplexity. This lead applies to both monthly active users and daily active users. The report explained that India’s rapid rise comes from its scale, affordability and favourable demographics. As a result, India has become central to global AI growth.
Meanwhile, the report noted that India has the second largest online population in the world. It has more than 700 to 750 million mobile internet users. Affordable data plans have also played a key role. Users can consume 20 to 30 GB of data per month at a cost of around $2. Therefore, access to AI tools has become easier for a wide range of users across the country.
BofA also pointed to India’s young population. More than 60 per cent of Indian internet users are under the age of 35. A large share of them is English speaking and quick to adopt new technology. This combination has helped AI platforms grow faster. Indian users are actively using AI tools to improve learning outcomes and increase productivity.
AI adoption is also receiving support from telecom companies. The report said companies such as Jio and Bharti Airtel are offering free subscriptions to paid versions of AI apps like Gemini and Perplexity. This has created what BofA described as a win situation. Users gain access at low cost. AI firms expand reach. Telecom operators add value to services.
Later, the report highlighted language inclusion. The availability of AI models in multiple Indian languages is helping reduce language barriers. This is also bridging the digital divide. BofA referred to this trend as the democratisation of AI in India.
The analysis further stated that India could emerge as a testing ground for agentic AI. These applications can reason, plan and execute tasks independently. Given India’s large and diverse user base, BofA believes the country is well suited to test such tools before global rollout. It also suggested partnerships between global AI firms and Indian companies for fulfilment services. (Maxim News)
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