India is rapidly emerging as one of the world’s largest technology talent hubs. The expansion of the developer ecosystem, high adoption of Artificial Intelligence (AI), and robust policy support have ushered the country into a new technological era. Both the government and industry are laying a strong foundation to drive AI-led innovation. Furthermore, India’s AI ecosystem is no longer confined to the tech sector; it is spreading swiftly across healthcare, agriculture, education, urban administration, and energy. This indicates that AI is set to become a central pillar of India’s digital economy in the coming years.
Let’s explore how India, with its massive developer base, is on the path to becoming a global leader in the world of AI.
What’s Happening?
India’s developer ecosystem has reached a critical tipping point, where its pace and scale are drawing global attention. According to GitHub, India now has 17 million active developers, with the community growing at a remarkable 28% YoY in 2024. This growth is not just a statistic; it signals where innovation is taking shape and where the global digital future is headed.
The GitHub Octoverse 2025 report reveals that in just one year, India added 5.2 million new developers, contributing one out of every three new developers globally. This makes India the largest source of new talent on GitHub. This momentum has been supported by significant policy initiatives, including digital infrastructure development and AI investment plans announced in the Union Budget 2026.
India’s New Tech Moment
The Indian developer community stands at a stage where mindset matters more than sheer numbers. That mindset is firmly ‘AI-first’. This is evident from the fact that nearly 80% of new developers in India start using GitHub Copilot within their very first week. For them, AI is not an optional add-on but an integral part of the development workflow from day one.
As of October 2025, India ranks second globally in contributions to public Generative AI projects. In 2024, Indian contributions to AI-powered projects rose by 79%, while a 95% YoY increase in overall developer contributions pushed India to third place globally, behind only the US and Hong Kong.
This surge is far from accidental. Indian developers are moving beyond using AI as a supporting tool and are instead building AI-native solutions. Platforms like ERPNext are addressing real-world business challenges, while initiatives such as the Open Healthcare Network are enabling small teams to leverage GitHub Copilot to rapidly build solutions across healthcare, education, agriculture, and commerce.
What Does This Mean for Investors?
One of the strongest signals from the Union Budget 2026 is India’s intent to position AI, semiconductors, and data infrastructure as the backbone of its future economy. Through ISM 2.0, the government has sharpened its focus on high-value segments of the chip value chain, including equipment, materials, and full-stack Indian IP. The increase in outlay for the Electronic Component Scheme to Rs 40,000 crore underscores India’s ambition to own the physical foundation of the digital economy.
For investors, this points to a likely surge in capital flows into sectors such as hardware manufacturing, chip design, electronics, data centres, and AI infrastructure. The announcement of a tax holiday until 2047 for foreign cloud companies using Indian data centres could position India as a global data hub, with spillover benefits for allied sectors like power, real estate, and fibre optics.
The shift towards treating AI as a utility, reflected in initiatives like Bharat-VISTAAR, is expected to drive new demand across HealthTech, AgriTech, EduTech, and SocialTech. The message for the private sector is clear: a growing developer base, combined with AI capabilities, domestic IP creation, and localised data infrastructure, will shape competitiveness over the next decade.
What’s Next?
In the years ahead, India is increasingly being viewed as a key contender in the global race for AI leadership. Government initiatives, rising industry demand, and the rapid expansion of the developer community are collectively steering the country into a new phase of innovation. According to Business World, Budget 2026 places India on a path towards ‘inclusive AI-led growth’, where domestic AI capabilities are expected to expand their global presence.
As India’s AI capabilities continue to evolve, sustained investments in digital infrastructure, developer-friendly policies, and a thriving startup ecosystem are giving the country a distinct edge in talent, technology, and innovation. India’s developer boom is no longer just a technology trend, it is fast becoming a cornerstone of the nation’s economic future.
*The article is for information purposes only. This is not investment advice.
*Disclaimer:Teji Mandi Disclaimer
