New Delhi, April 17 India is rapidly emerging as a global nerve centre for artificial intelligence (AI) in the retail and consumer packaged goods (CPG) sectors, driven by the growing scale and strategic evolution of Global Capability Centres (GCCs), according to a report.
As per the analysis of DS Stream, the nation currently hosts over 1,800 GCCs employing nearly 2 million technology professionals, with more than 70 per cent of these centres actively investing in AI-led capabilities across customer experience, merchandising, and supply chain optimisation.
India’s role has evolved significantly from being a cost-efficient support base to becoming a strategic hub where global retail and FMCG companies are designing and deploying their AI operating models, it said.
"India is no longer just supporting global operations. It is increasingly becoming the location where AI-driven decision-making frameworks for retail and CPG are being built and scaled," the report said.
Over 78 per cent of newly established retail and CPG GCCs in India are prioritising AI, machine learning, and data engineering as core capabilities.
These centres are now handling end-to-end functions, including cloud data platforms, machine learning operations, commercial analytics and enterprise-wide AI solutions, particularly in areas such as demand forecasting, pricing, promotions and inventory management.
Citing industry data, the report said that nearly 95 per cent of companies using AI in retail and CPG have reported cost reductions, while 89 per cent have seen revenue gains when AI is integrated into core operational workflows.
India is also strengthening its capabilities in AI engineering, including Machine Learning Operations (MLOps), governance and cloud-native architecture, enabling GCCs to move from pilot projects to large-scale, production-ready deployments.
"With more than 70 per cent of GCCs investing in AI platform engineering and governance, India is evolving into an ‘AI factory’ capable of delivering scalable and secure enterprise solutions," the report said.
It also underscored the importance of building integrated operating models that combine data engineering, machine learning and generative AI capabilities to create scalable and repeatable value.
India’s growing talent base, maturing AI ecosystem and evolving GCC model position it strongly to lead the next phase of AI-driven transformation in global retail and CPG, the report added.
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