AI Drives Rising Demand and Investment in India's IT Sector and Tech Market

India's IT sector is experiencing growing demand driven by artificial intelligence (AI), with companies like Wipro bidding for both small and large AI projects as clients move from experimentation to full-scale deployment. Foreign investors are returning to Indian tech stocks, encouraged by AI-led growth in firms such as TCS, Infosys, and HCL Tech. Additionally, enterprises like IndiaMART and ElevenLabs are increasing AI investments to enhance operations and customer engagement. India accounted for 16% of global downloads of general AI apps in 2025, reflecting rapid adoption despite low in-app purchase revenues.