The Linux Foundation, partnering with Meta, released a report at the India AI Impact Summit in New Delhi on February 17, 2026, highlighting how open source AI drives India's economic growth. The study reveals that 76% of Indian startups use open source AI, with the market projected to expand from $6 billion in 2024 to nearly $32 billion by 2031. It also addresses workforce challenges and social applications of the technology.
The report, titled "AI for Economic and Social Good in India: Scaling Inclusive Growth for Entrepreneurs, Creators, and Local Economies," draws from a literature review and qualitative interviews to examine AI adoption in India. It positions the country as a leader in AI innovation, supported by a $200-billion-plus IT services industry, a young digitally fluent population, and government-led digital public infrastructure.
Key findings include India's AI market growth from $3.2 billion in 2020 to $6 billion in 2024, projected to reach nearly $32 billion by 2031. The nation hosts over 200,000 startups and ranks fourth globally for newly funded AI companies in 2024. Additionally, India records the highest year-over-year AI hiring rate worldwide, establishing it as a vital global AI talent hub.
Hilary Carter, senior vice president of research and communications at the Linux Foundation, stated, "India is leveraging open source to define its own unique trajectory in the AI revolution. This report highlights not only the scale of India's AI opportunity, but why the country is well positioned for long-term success – thanks to its talent base, startup ecosystem, and commitment to open innovation."
The report warns of potential workforce disruptions, with 45–69% of jobs in manufacturing, customer service, and retail sectors at risk from automation by 2030. It recommends bolstering AI readiness through programs like the Skill India Digital Hub, fostering a national vision for open source AI, incentivizing small and medium-sized business adoption, and creating inclusive policies.
Social impact examples include Adalat AI for judicial transcription, Farmers for Forests for agroforestry support, Caze Labs' MeTProAI for clinical decisions, and multilingual tools from Bhashini and Sarvam AI. Arpit Joshipura, senior vice president and general manager at the Linux Foundation, noted, "We are witnessing a shift where India is utilizing its massive talent pool to solve real-world challenges at speed and scale that few other regions can match."
Rob Sherman, vice president of policy at Meta, added, "India is already at the forefront of AI adoption, with its vibrant startup ecosystem creating innovative solutions tailored to the country's unique needs. Open source AI coupled with pro-innovation regulation can supercharge India's AI ambitions." This is the sixth in the Linux Foundation's AI research series, comparing India's approach globally.
