India’s listed market of AI is set to witness significant growth, with possible market capital gains of $50 billion to $100 billion to be captured over the next three to five years. A detailed Goldman Sachs report projects that the expected acceleration is being fueled by privately owned artificial intelligence firms advancing plans for an IPO. The financial analysis reveals a significant surge in investor attention, institutional support, and overall expansion of the Indian technology sector, thereby affirming India’s growing stature in the international artificial intelligence sector.

Evaluation of private companies

The Goldman Sachs report identified 84 privately-held Indian companies with a combined valuation of about $55 billion that are exposed to the AI value chain and have significant operations in India. 

Of the total group, 71 companies are active at the level of growth investments, late-stage investments, infrastructure investments, or the buy-out stage, with total value estimated at $54 billion. It is estimated that 25% to 50% of these 71 mid-to-late-stage contenders may undergo an initial public offering in the next two to five years. 

Taking into consideration an average initial public offering valuation step-up of approximately four times their current estimated value, these new market listings will add anywhere between $50 billion and $100 billion to the listed artificial intelligence complex in India. 

These potential listings will likely diversify the market’s focus on infrastructure into more diversified operational areas, including data centre operators, enterprise artificial intelligence services, conversational intelligence, cloud management, and computer vision technologies in the healthcare sector.

Structural sector breakdown and investment trends

The private equity funds allocated to Indian AI startups have seen a dramatic growth of approximately three times since 2024, according to the report. In 2025, private equity funding for domestic artificial intelligence startups is projected to reach about $5 billion, compared with $1.6 billion in 2024. 

Funding for the first eight to nine months of 2026 has already reached the level of the total for 2025, precisely matching the record established in the previous year. Beyond absolute private equity (PE) funding numbers, the AI market share also rose from around 5% of private PE funding in India in 2024 to approximately 20% by 2026.

India advanced to sixth place in the world for private investment in AI and was fourth globally in the number of newly funded enterprises for AI, according to data cited by Goldman Sachs in the 2026 AI Index Report, released by the Stanford University AI Lab. 

When those 84 identified private companies are broken down into upstream AI enablers, such as those in power generation, semiconductors, and data centre infrastructure, the estimated value is $35 billion. 

Downstream companies, which use AI in areas like healthcare, financial services, and enterprise software, also contribute $18 billion of the total evaluated market value, and core artificial intelligence model companies contribute $2 billion.

Conclusion

The planned IPOs in the AI sector, with India positioned to grow by $50 billion to $100 billion by 2024, demonstrate that the market is maturing rapidly and offers significant economic promise. The AI ecosystem in India is poised for continued commercialization, strengthened by a surge in private equity funding since 2024, an increase in institutional involvement, and India’s high rank in the global startup creation index. The increased involvement in upstream infrastructure, core models, and downstream enterprise applications will help develop India’s position as a major global AI base as mid-to-late-stage private contenders move toward public markets.