From fringe to mainstream

India’s AI market is projected to reach $22 billion by 2027, driven by a 30% CAGR and a ₹10,371 crore national mission.

Manish Gupta, is president and managing director, Dell Technologies India
Manish Gupta, is president and managing director, Dell Technologies India

India is experiencing a defining AI moment. After a decade of building one of the world’s most sophisticated digital public infrastructures, the country is now accelerating into an era where AI becomes a strategic driver of national competitiveness. Across healthcare, financial services, manufacturing, and governance, AI is shifting from experimentation to mainstream impact. Poised to become one of the fastest-growing leaders in AI, India’s AI market is expected to reach $20-22 billion by 2027, posting a CAGR of 30%, as per Deloitte.

This surge is not only about adopting new tools; it is about re-engineering the nation’s digital backbone. IndiaAI Mission’s Rs 10,371 crore allocation highlights a focus on compute capacity, secure data platforms, and talent development, signalling India’s intent to lead in scalable AI innovation. India’s next phase will be powered by strong collaboration among technology providers, enterprises, and the public sector building on national ambition to unlock its full potential.

AI today is only as strong as the infrastructure that powers it. Moving from pilots to production demands architectures that are scalable, predictable, and governed. Dell Technologies is enabling this shift through Dell AI Factory, a unified framework integrating compute, storage, networking, software, and services. By supporting enterprises, SMEs, and partners with secure, modular AI systems aligned with India’s data protection priorities, technology becomes the foundation for a future-ready, nationwide AI ecosystem.

As technology cycles accelerate, enterprises in India must prepare for a rapidly shifting landscape. Dell Technologies’ global CTO and chief AI officer, John Roese, identifies five major shifts that will redefine how organisations build and scale AI in the coming years providing a clear roadmap for 2026 and beyond.

Governance becomes the defining imperative: AI innovation is progressing faster than governance, creating risks that could hinder adoption. By 2026, enterprises will require robust governance frameworks and private, controlled AI environments to ensure compliance and stability. Governance won’t slow innovation, it will be the guardrail that makes scalable, responsible AI possible.

Data management emerges as the true backbone: The next leap in AI will come from how organisations manage and utilise data. Purpose-built AI data platforms will become essential for protecting, orchestrating, and feeding high-quality data to models. In the agentic era, this data becomes a dynamic, real-time intelligence layer powering continuous decision-making.

Agentic AI becomes the operations manager: AI agents will evolve from assistants into coordinators of complex processes across manufacturing, logistics, and public services. These agents will optimise workflows, ensure operational continuity, and act as digital managers that elevate efficiency across entire systems.

AI factories redefine resilience: With AI embedded in core operations, disaster recovery must evolve. Protecting vectorised data and knowledge artefacts will be crucial to maintaining continuity. Secure, resilient AI factories will become foundational, ensuring organisations remain operational even when primary systems fail.

Sovereign AI powers national and enterprise innovation: As nations prioritise digital autonomy, enterprises will rely on sovereign, localised AI infrastructure for compliance, performance, and control. This shift will accelerate innovation in regulated sectors and align enterprise growth with national priorities.

India stands on the brink of an unprecedented AI-led transformation. As capabilities scale and governance matures, the leaders will be those who invest early and innovate responsibly.

The writer is president and managing director, Dell Technologies India

Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.

This article was first uploaded on December twenty-five, twenty twenty-five, at four minutes past twelve in the am.