Mumbai Poised to become India’s AI Adoption Capital, according to report by McKinsey & TEAM Unveiled at MumbAI Tech Week 2025

• 67% of Mumbai’s unicorns are profitable, making it India’s most financially stable startup ecosystem
• AI enterprises are projected to contribute 15% of Mumbai’s GDP growth by 2035
• Mumbai accounts for 50% of India’s data center capacity, with 99.9% uptime
• 73% of startup CXOs and founders surveyed rate Mumbai’s ease of mobility better than/ at-par with other cities
• 100% of startup CXOs and founders surveyed rate Mumbai’s digital infrastructure better than/ at-par with other cities
• 73% of startup CXOs and founders believe that the government in Mumbai is a strong proponent of AI adoption for public use cases

Mumbai is strategically positioned to become India’s leading AI adoption and innovation hub, according to a new report by the Tech Entrepreneurs Association of Mumbai (TEAM). Unveiled by Hon’ble Chief Minister Shri. Devendra Fadnavis at Mumbai Tech Week 2025, the report highlights Mumbai’s robust infrastructure, thriving startup ecosystem, and access to cutting-edge research, paving the way for its “MumbAI 2035” vision.

“Mumbai has always been the city of dreams, ambition, and breakthrough thinking,” stated Naiyya Saggi, TEAM spokesperson. “With the advent of AI, and the findings of the first of its kind knowledge report by Mckinsey & TEAM on an Indian city’s AI capabilities and future forward infrastructure, we are now positioned to have a clear direction on how Mumbai will lead India’s AI transformation. This report underscores our city’s incredible potential as an AI adoption hub at scale. At TEAM, we are committed to nurturing this growth and partnering with the ecosystem of Government, Founders, Industries and Research Bodies ensuring that the financial capital remains a global leader in AI advancement”

The report identifies 5 areas in particular that make Mumbai distinctly positioned for being a leader in AI deployment at scale.

Mumbai’s Edge: Infrastructure, Accessibility, and Startup Growth

Building on its established role as India’s financial capital, Mumbai is solidifying its position as a leading AI hub, as evidenced by the report. Survey results indicate that 73% of startup CXOs and founders consider Mumbai’s accessibility, in terms of mobility, on par with or superior to other major cities. This aligns with Mumbai’s reputation for housing numerous profitable startups and unicorns, supported by a well-connected transport network that enhances operational efficiency.

Furthermore, Mumbai’s digital infrastructure ranks high with 100% of surveyed startup leaders rating it as equal to or better than that of other hubs. Overall, 63% of respondents believe Mumbai offers a more favorable environment for startups compared to other cities.

AI already at the forefront of Mumbai’s growth

According to the report, Mumbai is home to a rapidly growing AI startup ecosystem, with 67% of the city’s unicorns being profitable, outpacing major startup hubs like Bangalore and Delhi-NCR. AI adoption is at the core of this success, with over 67% of surveyed founders already implementing AI for software development and testing. The AI-driven ecosystem is projected to contribute 15% of the city’s GDP growth by 2035, with AI-based enterprises expected to attract $450B+ in foreign direct investment (FDI) over the next decade.

With 250+ AI startups incubated at IIT-Bombay and top engineering institutions producing 35,000+ engineers annually, Mumbai is well-positioned to nurture the next generation of AI innovators, highlighted the report. By 2035, the city aims to have 2 million tech professionals, with at least 500,000 trained AI specialists, strengthening its position as India’s AI capital.

The Data Center Boom: Powering AI’s future

Mumbai accounts for 50% of India’s installed data center capacity, unveiled the report, ensuring that enterprises have access to world-class cloud computing and AI training capabilities. With 99.9% uptime, the highest in India, and multi-billion-dollar investments in new data centers, the city is quickly becoming the go-to destination for AI-driven enterprises seeking high-performance computing.

Additionally, the report also highlighted Mumbai’s AI-focused real estate expansion, including dedicated tech parks and affordable living and working spaces in and around the city. Government initiatives, such as regulatory sandboxes and AI innovation funds, are further accelerating AI experimentation and enterprise adoption.

Enterprises leading AI adoption across sectors

The report further unveiled Mumbai’s dominance in AI is also driven by its strong corporate presence, with 39 out of the Nifty 100 companies headquartered in the city. These corporations, spanning finance, healthcare, media, and manufacturing, are rapidly integrating AI into their operations, driving efficiency and unlocking new revenue streams. With Mumbai-based companies projected to invest $6B+ in AI by 2035, the private sector is playing a crucial role in catapulting AI deployment.

The report also showed how 50% of start-up CXOs and founders find Mumbai more favorable than other hubs in the country, especially with respect to the cities adopting emerging tech including Artificial Intelligence. In fact, 72% of the start-up CXOs and founders also show faith in the Mumbai government robustly supporting AI, specifically for public use cases.

From fintech giants revolutionizing payments with AI-powered fraud detection to media companies leveraging AI for content creation and personalization, the financial capital’s diverse industry landscape is a catalyst for pioneering AI breakthroughs. Additionally, the Maharashtra government and the BMC (Brihanmumbai Municipal Corporation) are actively investing in AI-powered civic administration solutions.

Women in Workforce

Mumbai distinguishes itself as a leading Indian city where women’s participation in the workforce is not just a benefit but a fundamental aspect of its economic and cultural landscape. This distinction is supported by significant statistics and proactive safety measures:

High Workforce Participation

• Mumbai has a large workforce of over 5 million professionals, with more than 650,000 women, demonstrating substantial female involvement across various sectors.
• Women-led startups in Mumbai have successfully raised over $75 million in funding, highlighting a supportive environment for female entrepreneurship.

Commitment to Safety and Security

• The city has implemented the Mumbai Safe City Project, installing approximately 6,000 CCTV cameras and public panic buttons to enhance public safety.
• Additional safety measures include increased police patrols, 24/7 helpline numbers (103 and 1298) for immediate assistance, and efficient emergency response systems.
• Public transportation is made safer for women through reserved seating on buses and dedicated night buses with female staff

Impact on Profitability

• These safety initiatives and the resulting sense of security contribute to increased female participation in diverse professions.
• This participation not only enriches Mumbai’s workforce but also positively impacts the city’s overall economic health and profitability.
• Mumbai’s dedication to creating a safe and inclusive environment for women is a key factor in its socio-economic vitality, promoting a culture where women are both seen and safe at work.

Vision for MumbAI 2035

The “MumbAI 2035” vision positions Mumbai as India’s premier hub for AI-driven transformation, as detailed in the recent TEAM report. This ambitious plan projects the city’s startup ecosystem to surpass 100 unicorns, generating substantial revenue and fostering continuous technological advancement. By 2035, Mumbai-based companies are expected to invest over $6 billion in AI, further fueling this growth.

Key initiatives within the “MumbAI” roadmap include:

• Cultivating a robust talent pool and enhancing AI capabilities
• Driving economic growth through the expansion of Mumbai’s unicorn ecosystem, which already contributes 15% to the city’s economic output.
• Attracting over $450 billion in foreign direct investment (FDI) within the next decade, potentially creating more than 50,000 direct tech jobs.
• These strategic efforts aim to solidify Mumbai’s leadership in the AI sector

Strategic Imperatives for the MumbAI Ecosystem

The report emphasizes the critical importance of collaboration between enterprises, policymakers, entrepreneurs, academia, and tech talent to drive Mumbai’s AI ecosystem forward. It outlines six key enablers for achieving the MumbAI 2035 vision: identifying and funding solutions for 10 public-sector challenges through sandbox environments; securing commitments from over 10 Nifty

50 companies for AI adoption and innovation funding; establishing specialized AI academic programs to add 15,000+ AI professionals annually; encouraging real estate investments in affordable tech parks and housing; developing a comprehensive AI policy framework covering subsidies, infrastructure, research funding, and ethical guidelines; and TEAM members’ commitment to upskilling 100,000+ professionals while creating engagement avenues to drive ecosystem growth.

ABOUT TEAM:

Tech Entrepreneurs Association of Mumbai (TEAM) is a non-profit, independent industry association formed with the mission of advancing the tech ecosystem of Mumbai. Formed by some of the city’s most successful tech founders, TEAM is on a mission to promote Mumbai as the hub for tech entrepreneurship.

Its Governing Council comprises Harsh Jain, Co-Founder Dream 11, Aakrit Vaish, Advisor, IndiaAI Mission, Naiyya Saggi, Founder Edition and Co-Founder, The Good Glamm Group, Dhruvil Sanghvi, Co-Founder LogiNext, Akanksha Hazari, Founder LoveLocal, Vishal Gondal, Founder GoQii, Mayank Kumar, Co-Founder BorderPlus, Upgrad and Vivek Khemani, Co-Founder Quantiphi.

65+ members are founders from Mumbai-based tech companies: BillDesk, BookMyShow, Chalo Mobility, CitiusTech, CleverTap, Dezerv, Dream11, Drip Capital, Eruditus, Fino Payments Bank, Fractal Analytics, FlexiLoans, Games24x7, GetVantage, GOQii, Gupshup, Haptik, Hungama, Infibeam Avenues, Invideo, LEAD School, Loco, LogiNext, LoveLocal, Mosaic Wellness, Nazara Technologies, Netcore Cloud, Shaadi.com, Pepper Content, Pepperfry, PharmEasy, Pine Labs, Prismforce, Purplle, Quantiphi, Rebel Foods, Route Mobile, Servify, The Good Glamm Group, The Souled Store, Turtlemint, upGrad, Upstox, WebEngage, and Zeta.