India is rapidly emerging as a global powerhouse in artificial intelligence adoption. According to the latest Economic Index report released by Anthropic on January 15, India has become the second-largest market in the world for cloud-based AI usage, trailing only the United States.

The report highlights that while AI usage is concentrated in a handful of countries—including Japan, the UK, and South Korea—India stands out for both the scale and depth of its cloud AI adoption, particularly in technical domains.

Where is AI being used the most in India?

Anthropic’s findings show that technical tasks dominate AI usage in India. Nearly 45.2% of all cloud AI activity in the country is related to computer science and mathematical work.

Key insights include:

• 5 of the top 10 cloud AI use cases in India fall under software and web development

• Developers are increasingly using AI for routine coding, debugging, and optimisation

• AI is becoming a daily productivity tool rather than an experimental technology

This trend reflects India’s strong base of software engineers and IT professionals.

Web development stands out globally

One of the most striking findings in the report is India’s intense use of AI for web development.

Compared to the global average:

• Indian users are 2× more likely to use cloud AI for CSS, HTML, and UI styling

• They are 1.7× more likely to rely on AI for building and debugging web applications

This suggests that AI is now deeply embedded in India’s frontend and full-stack development workflows.

AI use beyond coding: careers and emerging tech

AI adoption in India is not limited to software development. The report highlights several other fast-growing use cases:

• AI system development (chatbots, workflow automation): 1.5× the global average

• Database administration and data engineering: 1.4× the global average

• Career-related usage, including:

  • Job searches

  • Professional skill development

  • Academic work in STEM fields

  • Business planning and entrepreneurship

This shows that AI is increasingly being used as a career accelerator in India, not just a coding assistant.

A surprising gap: usage vs population

Despite ranking second globally in total cloud AI usage, India’s per-capita adoption remains relatively low.

Anthropic’s AI Usage Index (AUI)—which measures AI usage relative to a country’s working-age population—places India at 0.22. This indicates that cloud AI usage is under-represented compared to the size of India’s workforce.

In simple terms:

• India uses a lot of AI in absolute numbers

• But there is still massive untapped potential

What this means for India’s AI future

The data suggests India is well-positioned to become a global “AI factory”—a country where large-scale, real-world AI work is built, tested, and deployed. With a huge talent pool, strong developer ecosystem, and growing cloud adoption, India’s next challenge is scaling AI access beyond early adopters.