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India's Cloud Infrastructure Falls Short Amid AI Boom

Despite the country’s push towards digitization and keeping pace with new technologies like artificial intelligence, India’s cloud spending lags far behind the global average. Cloud infrastructure provides scalable and flexible computing resources for businesses of all sizes.

The good news is that global and Indian companies are increasing investments in building extensive cloud infrastructure and data centers to meet the growing demand they are seeing. The reliability and security of cloud infrastructure make it an essential component for modern digital businesses.

According to Statista Market Insights, global spending on public cloud services per employee in CY2024 is projected to be $196.80. In India, by comparison, the per-employee spend on public cloud services is expected to be only $17.53, one-tenth of the global average.

The figures say India's cloud revenue could reach $9.9 billion by 2024, or 1.4 percent of the global average. Additionally, increased investment in cloud education and training programs can help demystify technology and encourage more organizations to make the switch.

The Indian government and industry stakeholders should work together to create incentives for cloud adoption. Subsidies or tax breaks for cloud services can reduce funding barriers for businesses.

Additionally, there is a need to improve the regulatory framework to balance data protection with cloud accessibility. Policies that promote a secure yet robust data environment should enable companies to embrace cloud solutions with greater confidence.

Conclusion: while India’s Artificial Intelligence ambitions are laudable, cloud spending must transform infrastructure to achieve these goals. Cloud infrastructure empowers businesses to adapt to changing demands and scale their operations seamlessly and rapidly. For India to emerge as a true leader in AI, the distinction between aspiration and investment in infrastructure is essential.