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Open source AI could help drive India's market from $6 billion to $32 billion by 2031, research finds

A joint report from the Linux Foundation and Meta says rural connectivity gaps and a large startup base make open technologies central to India's AI ambitions

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Open source AI could help drive India's market from $6 billion to $32 billion by 2031, research finds
Photo by Karthik Chandran / Unsplash

New research from the Linux Foundation Research and Meta projects that India's AI market will grow from $6 billion in 2024 to nearly $32 billion by 2031, with open source software identified as a foundational enabler of that growth.

The report highlights the particular relevance of open technologies in a country where nearly 70% of the population lives in rural areas, citing examples including medical chatbots and farm-management tools such as CropIn that can function in low-connectivity environments.

The research finds that a majority of Indian startups rely on open source technologies to build and customise AI solutions, in a market that is home to more than 200,000 startups and ranks among the leading global destinations for newly funded AI companies.

Rob Sherman, vice-president of policy at Meta, said open source AI combined with supportive regulation could enable Indian developers to build and scale technologies "not just for India, but for the world."

The report concludes that sustained growth will depend on policies expanding access to computing infrastructure, supporting open ecosystems and ensuring productivity gains are broadly shared.

The Recap

  • Research links open source to India’s accelerating AI market growth.
  • India’s AI market projected to reach nearly $32 billion by 2031.
  • Report says policy, infrastructure, and collaboration are needed.
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