India's burgeoning artificial intelligence landscape is witnessing significant growth, underscored by its position as the second-highest global adopter of Anthropic's Claude.ai platform. This widespread embrace of AI technologies signals a promising trajectory for India's future in the AI domain.
According to Anthropic's latest Economic Index report, India ranks second globally in overall Claude.ai usage, only surpassed by the United States. A notable characteristic of Indian users is their focus on work-related tasks, with nearly half of all Claude.ai activity geared towards enhancing productivity. Peter McCrory, head of economics at Anthropic, emphasized that India stands out due to the heavy utilization of Claude.ai for professional purposes, exceeding the levels observed in countries with similar adoption rates. This trend indicates that Indian professionals are increasingly integrating generative AI tools into their daily workflows to augment their capabilities and efficiency.
Specifically, approximately 45% of Claude.ai usage in India is concentrated in computer and mathematical work, with a strong emphasis on software development. Indian developers are notably active in front-end web development, utilizing Claude.ai for HTML, UI styling, and debugging web applications at roughly twice the global average rate. This highlights the country's deep pool of software talent and a growing community of engineers who are comfortable integrating AI tools directly into their workflow. These usage patterns demonstrate where individuals are deriving tangible economic value from AI, particularly in professional and technical tasks where AI excels.
India's proactive engagement with AI is further demonstrated by its commitment to developing indigenous AI capabilities. The India AI mission, approved in March 2024 with a budget of ₹10,371.92 crore over five years, aims to establish India as a global leader in AI. This initiative focuses on fostering AI innovation across various sectors, addressing societal challenges, and promoting responsible and ethical AI development. The government is also facilitating the development of India's own foundational models, including Large Language Models (LLMs), tailored to Indian needs.
Several factors contribute to India's rise in AI. The country boasts a vast pool of skilled talent in science, technology, engineering, and mathematics (STEM) fields, driving the creation of innovative AI algorithms and solutions. The increasing investments in AI startups, coupled with the growing demand for AI-powered solutions across industries, are also fueling market growth. As of 2023, the Indian AI market was valued at USD 5 billion and is projected to reach USD 12.43 billion by 2033, exhibiting a CAGR of 27.60%.
However, challenges remain in ensuring equitable access, developing local talent, and addressing ethical considerations surrounding AI use. Despite high overall usage, India's Claude.ai intensity is low relative to its working-age population, indicating underrepresentation compared to population size. Furthermore, a potential AI divide exists between countries and within India, between those who can effectively use AI and those who cannot. Addressing these challenges through education and skills development is crucial for maximizing the benefits of AI and promoting inclusive growth.
To further strengthen its AI ecosystem, Anthropic is expanding its presence in India, with plans to open an office in Bengaluru and participate in the India AI Impact Summit in February 2026. The company has appointed Irina Ghose, a Microsoft veteran, as managing director for its India operations, signaling its commitment to the Indian market and its potential for AI-driven innovation.
