Gujarat aims to lead India’s $957 million AI market, sets up centre in GIFT City

Gandhinagar, Jan 27 Gujarat government launched the Artificial Intelligence (AI) Center of Excellence at Gujarat’s GIFT City, positioning it as a key think tank for AI innovation in the state.

At the event, Chief Minister Bhupendra Patel also launched the AI Innovation Challenge, aimed at fostering cutting-edge solutions in artificial intelligence and the Internet of Things (IoT).

Speaking on the occasion, the Chief Minister said that the AI Center of Excellence will play a pivotal role in Gujarat’s vision to become a hub for artificial intelligence and technology-driven development.

He added that this initiative aligns with Prime Minister Narendra Modi’s futuristic vision for India and builds on GIFT City’s reputation as the nation’s first financial tech city, which continues to add new innovations.

During the event, he also awarded 10 MSMEs for their innovative AI and IoT-led solutions under the AI Innovation Challenge.

He emphasised the importance of early adoption of technological advancements in startups and MSMEs to enhance Gujarat’s competitive edge.

Highlighting the state’s forward-thinking approach, the Chief Minister remarked, “With Prime Minister Modi’s mantra of ‘Yahi Samay Hai, Sahi Samay Hai’ (This is the right time), Gujarat is taking significant strides to lead in the global competition. We aim to empower the nation’s youth to turn this vision into reality.”

To enhance governance through technology, he also announced the formation of the Gujarat A.I. Task Force.

The AI market in India is expected to reach approximately $17 billion by 2027, reflecting a compound annual growth rate (CAGR) of 25-35 per cent from its current valuation.

In 2023, the Indian AI market generated revenues of $10.28 billion and is projected to grow at a CAGR of 51 per cent from 2024 to 2030, reaching an estimated $184.46 billion by 2030.

AI adoption across various sectors in India is also on the rise. As of 2024, the AI adoption index score stands at 2.47 on a 4-point scale, indicating that 87 per cent of companies are in the middle stages of AI adoption, ranging from enthusiast to expert levels.

The banking and financial services (BFSI) industry leads with a 68 per cent AI adoption rate in fiscal year 2024, followed by the technology sector at 60-65 per cent.

Source: IANS