NEW DELHI, India — India has become the world’s largest and most active market for the adoption of large language models, according to an analysis released by Bank of America on Wednesday.
The report said India now leads globally in user numbers for popular AI applications such as ChatGPT, Gemini, and Perplexity, ranking first in both monthly active users and daily active users.
Bank of America attributed India’s rapid rise as a key AI market to a combination of scale, affordability, and favorable demographics. India has the world’s second-largest online population, with an estimated 700–750 million mobile internet users.
Low-cost data plans have also played a major role in accelerating adoption. Users can consume 20–30 GB of data per month for roughly $2, significantly lowering barriers to accessing AI-powered services. More than 60 percent of Indian internet users are under the age of 35, and a large share of this population is English-speaking and quick to adopt new technologies, the report noted.
Telecom companies are further driving AI usage by bundling premium AI services with mobile plans. According to BofA, providers such as Reliance Jio and Bharti Airtel are offering complimentary subscriptions to paid versions of AI apps, including Gemini and Perplexity. This approach is creating benefits for consumers, AI developers, and telecom operators alike.
For users, affordable access to advanced AI tools is helping improve learning outcomes and boost productivity. The report also highlighted the growing availability of AI models in multiple Indian languages, which is helping narrow the digital divide and reduce language barriers, contributing to what it described as the democratization of AI.
Looking ahead, Bank of America said India could emerge as a key testing ground for the next phase of artificial intelligence, known as agentic AI. These systems are designed to reason, plan, and execute tasks independently.
Given India’s massive and diverse user base, the report said the country is well positioned to stress-test such applications in real-world conditions before wider global rollouts. It added that global AI firms could partner with Indian companies for fulfillment and execution services, similar to how AI agents in the U.S. have integrated with platforms such as Booking and Expedia. (Source: IANS)
