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Here’s how Nvidia’s deal with Tata Group and Reliance will impact India’s AI industry

Nvidia’s India bet: Tata Group and Reliance Industries, two major Indian conglomerates, have recently signed a deal with Nvidia, a leading chip maker based in Santa Clara, California, to boost the development of artificial intelligence (AI) solutions in India.

Nvidia, on September 8, announced an extensive partnership with Tata Group, aimed at providing AI computing infrastructure and platforms for the creation of AI solutions. This collaboration is poised to democratise cutting-edge AI capabilities, making them accessible to numerous organisations, businesses, AI researchers, and hundreds of startups in India.

In a parallel development, Reliance Industries also forged an alliance with Nvidia to further the cause of AI in India, with a specific focus on tailoring AI models to India’s diverse languages and generative AI applications. 

The aforementioned collaborations mark a substantial stride in the advancement of AI technology in India, given the capabilities of these conglomerates.

India AI market

These partnerships come at a time when the Indian AI market is on a significant growth trajectory. The AI market in India is projected to reach $7.8 billion by 2025, exhibiting an impressive compound annual growth rate (CAGR) of 20.2 per cent, according to a report by the State of the Education report (SOER) 2022. 

Globally, AI has emerged as a revolutionary force, with the global AI market reaching nearly $59.67 billion in 2021. It is projected to continue its exponential growth, with a CAGR of 39.4 per cent, ultimately reaching $422.37 billion by 2028. Meanwhile, India’s AI market is set to play a crucial role in this landscape, with a projected CAGR of 20.2 per cent, surging from $3.1 billion in 2020 to $7.8 billion by 2025. The rapid growth of AI startups including Niki.ai, Intello labs, Arya.ai, Cure.ai, and Haptik among others is a testament to the significant traction AI technology is gaining, driven by transformative changes in business operations and rapid technological advancements.

Experts anticipate a substantial increase in AI-related job opportunities, with a 31.4 per cent growth expected by 2030 in roles pertaining to data science and mathematical science, mostly AI-based. These developments underscore the pivotal role AI is poised to play in reshaping industries and augmenting human intelligence in the years to come.


AI is emerging as a crucial industry, replicating human cognitive functions to automate various business operations, from customer interactions to social media brand awareness. This transformative technology, however, is sweeping through diverse sectors including healthcare, insurance, finance, and marketing, streamlining processes and enabling data analysis, market research, and customer engagement.Therefore, given the country’s rapidly growing economy, India holds a significant stake in the ever-evolving AI industry.

During the Union Budget 2023, Finance Minister Nirmala Sitharaman underlined the nation’s commitment to establishing a robust AI ecosystem and cultivating skilled AI professionals. “India will have centres of excellence for Artificial Intelligence for realising the vision of ‘make AI in India’ and ‘make AI work for India,” she added.

AI’s impact extends to critical sectors like agriculture and healthcare. India boasts over 1,000 agriculture technology startups Ninjakart, DeHaat, and Bighaat among others, collaborating with government initiatives such as the National Agriculture Market and eNAM, which have modernised agricultural practices. Sustainable technologies, including blockchain, machine learning, drones, and AI, are pivotal in enhancing crop quality and mitigating issues like disease manifestation, irrigation, and greenhouse gas emissions.

In the education sector, the Central Board of Secondary Education (CBSE) introduced AI as a subject in class IX and XI, aligned with the National Education Policy (NEP), according to a report by India Brand Equity Foundation (IBEF). Initiatives like the Diksha portal leverage AI for self-paced learning, reaching millions of students across states and union territories. 

Cloud-based education is gaining traction, with companies like Miko offering AI-driven companionship and learning experiences for children. The education sector witnessed the emergence of numerous AI startups, including HackerRank and iNurture Square Panda, the report added.

AI is also reshaping the healthcare sector, with major players like Google collaborating with Indian hospitals to enhance diagnostic capabilities. AI aids in addressing healthcare disparities in rural areas by facilitating early disease detection and automated interventions. Tech giants like Google, Microsoft, Meta, and Apple are investing significantly in healthcare, alongside startups like Pharmeasy, HealthifyMe, and Healthplix, expanding AI’s role from early diagnosis to drug trials and patient monitoring.

In the defence industry, AI is poised to revolutionise the Indian armed forces, making it a formidable global player. Collaboration between public and private sectors, research institutions, academia, startups, and innovators has led to the development of AI-based technologies in areas such as data management, logistics, surveillance, and weaponry. AI’s introduction into defence promises to redefine combat and security measures, enhancing intelligence, surveillance, and reconnaissance capabilities, ultimately contributing to national security. Some defence startups include Big Bang Boom Solutions, Cron Systems (Cron AI), Dimension NXG (AjnaLens), EyeROV, and IdeaForge among others.

Future of AI in India

A report by TeamLease suggests that AI is poised to make a substantial contribution to the Indian economy, potentially adding a whopping $967 billion by 2035. However, in the shorter term, by 2025, AI is anticipated to inject approximately $450-500 billion into India’s Gross Domestic Product (GDP), accounting for 10 per cent of the country’s target of $5 trillion GDP.

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