Tag: AI Startups

  • Why AI Startups Are Skipping India: The Hidden Crisis in India’s Innovation Ecosystem

    A growing number of AI and deep-tech startups in India are bypassing domestic enterprise clients altogether. This trend, now popularly known as the “Skip India” movement, is being driven not by lack of ambition but by structural and systemic hurdles that stifle innovation at home. Indian founders, even those with successful track records, are increasingly shifting focus to foreign markets early in their journey, seeing more predictable, faster-moving, and innovation-receptive customers abroad. This article dives into why this trend is accelerating, what it says about India’s enterprise and innovation culture, and how it could reshape India’s tech future.

    The Reality for AI Startups in India

    Despite India’s positioning as a global IT powerhouse and its aggressive digital public infrastructure push, most early-stage Indian AI startups are unable to find a supportive local market.

    The Reality for AI Startups in India
    The Reality for AI Startups in India

    They face a unique cocktail of challenges:

    1. Unpaid Proofs of Concept (PoCs): Startups are routinely asked to build unpaid PoCs that demand months of work without guaranteed conversion. Unlike global counterparts that budget for innovation and are open to piloting emerging tech with budgets, many Indian enterprises treat PoCs as free trials, exhausting startup resources and morale.
    2. Bureaucratic Sales Cycles: Enterprise sales in India involve long decision cycles, multiple gatekeepers, and unclear timelines. For startups, this burns cash and time, making India an unattractive first market. Founders cite a lack of access to key decision-makers and frequent ghosting even after initial enthusiasm.
    3. Risk Aversion and Status Quo Bias: Indian enterprises show a strong bias for buying from established IT services firms and legacy players. Startups, especially in bleeding-edge spaces like GenAI or privacy-focused AI, struggle to convince risk-averse buyers to invest early. Even after strong demos and PoCs, buyers often default to safer, known vendors.
    4. Lack of Strategic Capital from Enterprises: In more mature markets, enterprise clients act like strategic partners. They might be early customers, design partners, or even angel investors. In India, such deep collaborations are rare. The market views startups as vendors rather than collaborators.

    Voices from the Ground

    Paras Chopra, founder of Wingify and Lossfunk, publicly stated he banned his team from engaging with Indian clients. He shared that Indian clients often waste time, don’t pay, and expect the impossible for free.

    Vaibhav Domkundwar, founder of Better Capital, called out Indian firms for treating startups like free consulting shops. He stated on record that the culture of unpaid PoCs is actively killing the domestic AI ecosystem.

    These are not isolated rants, they reflect a growing sentiment among founders who feel that the Indian enterprise ecosystem lacks the culture to nurture early innovation.


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    Global Market vs Indian Market: A Stark Contrast

    Why AI Startups are Choosing Global Markets Over India
    Why AI Startups are Choosing Global Markets Over India

    Startups that shift focus to the US, the Middle East, or Southeast Asia find:

    • Faster sales closures
    • Better respect for IP
    • Paid PoC culture
    • Constructive feedback loops
    • Strategic customer partnerships

    In contrast, India’s digital economy, though massive, is often inaccessible to early-stage tech innovators unless they have backing from powerful networks or legacy credibility.


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    The Consequences of Skipping India

    1. Loss of Localized Innovation: When startups ignore the Indian market, solutions aren’t tailored for Indian consumers or enterprises. This slows down digital transformation domestically and makes India dependent on imported AI solutions.
    2. Brain Drain 2.0: Many founders either relocate abroad or build with foreign markets as the only target. This time, the drain isn’t just talent, but IP, revenues, and eventual value creation.
    3. Missed Opportunity for Enterprises: Indian businesses risk missing the AI wave entirely. By not engaging startups early, they lose competitive advantages and risk becoming digital laggards.
    4. Broken Ecosystem Flywheel: Successful local exits create capital, mentors, and second-time founders. Without early traction in India, these cycles break. The startup ecosystem remains dependent on foreign buyers and venture capital.

    Underlying Cultural and Systemic Issues

    • Transactional Mindset: Many Indian buyers approach B2B SaaS or AI products with a cost-first mindset, not a value-first one.
    • Innovation Theater: There’s often more talk about innovation (via hackathons, challenges, showcases) than actual paid deployments.
    • Lack of Internal Champions: Unlike Silicon Valley, where PMs or engineering leads can drive adoption, Indian orgs lack such evangelists who can push for startup solutions internally.
    • Preference for Build Over Buy: Large IT departments often try to replicate startup solutions in-house, even if inefficient.

    What Needs to Change: The Way Forward

    Enabling Innovation in India
    Enabling Innovation in India
    1. Enterprises Must Pay for PoCs: If Indian corporates are serious about innovation, they must allocate budgets for experimentation and pay startups for their work. Even small pilot contracts send a strong signal of intent.
    2. Create Innovation Sandboxes: Firms can create innovation arms or test environments where startups can plug in and demonstrate value without being blocked by compliance or bureaucracy.
    3. CIOs and CTOs Need Mandates for External Innovation: Leadership must incentivize teams to work with startups and not just with established vendors. KPIs should track how many startups get onboarded annually.
    4. Strategic Capital and Customer Equity: Enterprises could take equity positions in promising B2B startups they pilot with, aligning incentives and signaling seriousness.
    5. Government and DPI Institutions Can Lead: Public institutions like NPCI, ONDC, and MeitY can set the tone by funding, piloting, and scaling solutions from Indian startups.

    Conclusion: Skip India Is Not a Trend, It’s a Symptom

    The “Skip India” movement isn’t just a startup complaint. It’s a mirror to India’s enterprise culture and innovation readiness. If the world’s fastest-growing tech talent base continues to look outside for validation and value, India risks being a factory for the world, but not a market. To change that, Indian enterprises must stop treating startups as vendors and start viewing them as partners in transformation.

    India’s future as a global innovation leader depends not just on how well it builds, but how willingly it buys from its own.

    FAQs

    What is the “Skip India” movement?

    It refers to a growing trend where Indian AI and deep-tech startups avoid Indian enterprise clients and focus on global markets due to systemic challenges in the domestic ecosystem.

    Why are Indian startups skipping the local market?

    They face issues like unpaid Proofs of Concept (PoCs), long sales cycles, risk-averse clients, and a lack of strategic partnerships from Indian enterprises.

    What are the consequences of skipping India?

    It leads to brain drain, loss of localized innovation, and missed opportunities for Indian enterprises to leverage homegrown AI solutions.

    How do global markets differ for these startups?

    Startups find faster deal closures, paid PoCs, strategic collaborations, and greater respect for IP in markets like the US, the Middle East, and Southeast Asia.

  • Leading the Charge: 12 VC Powerhouses Fueling India’s AI Startup Space

    India’s startup ecosystem has been increasing in recent years, with a particular surge in ventures focused on artificial intelligence (AI). These startups are developing innovative solutions that have the potential to transform various industries.

    However, building a successful AI-based startup requires a great idea, a talented team, and significant financial support. That’s where venture capital (VC) firms come in. 

    In this article, we’ll delve deeper into the top VC funds actively supporting India’s young AI startups, providing them with the necessary funding, mentorship, and resources to drive innovation and foster growth in the country’s tech landscape.

    1. RTP Global
    2. Endiya Partners
    3. Aeravti Ventures
    4. pi Ventures
    5. Together
    6. Hyderabad Angels (HA)
    7. Arkam Ventures
    8. GRAYSCALE VENTURES
    9. CapFort Ventures
    10. Speciale Invest
    11. Equirus
    12. GOOD CAPITAL

    1. RTP Global

    Founded By Leonid Boguslavsky
    Founded In (India) 2022
    Headquartered At (India) Bangalore, India
    Website www.rtp.vc
    RTP Global - Top VC Fund Supporting India's Young AI Startups
    RTP Global – Top VC Fund Supporting India’s Young AI Startups

    RTP Global has an inspiring history that spans over two decades and is a testament to the power of audacity and determination. The firm was founded by Leonid Boguslavsky, who placed a bold bet on the future of technology and innovation, which has paid off manifold. RTP Global is not just a venture capital firm; it embodies the spirit of entrepreneurship.

    The firm’s vision is to identify and nurture visionary founders whose ideas have the potential to transform industries. RTP Global’s investment philosophy is based on swift decision-making, early-stage investments, and deep commitments to portfolio companies.

    It is not just about making investments; it’s about forming long-term partnerships and standing by founders through the ups and downs of their entrepreneurial journeys.

    Over the years, RTP Global has backed hundreds of founders who share its ambitious spirit. The firm’s portfolio includes some of the most successful tech companies of our time, such as Datadog, Delivery Hero, and Cred.

    RTP Global’s unwavering support for its portfolio companies sets it apart from other venture capital firms. RTP Global has helped them achieve their goals and create lasting value by forging strong relationships with founders.

    2. Endiya Partners

    Founded By Sateesh Andra, Ramesh Byrapaneni, and Abhishek Srivastava
    Founded In 2015
    Headquartered At Hyderabad, India
    Website www.endiya.com
    Endiya Partners - Top VC Fund Supporting India's Young AI Startups
    Endiya Partners – Top VC Fund Supporting India’s Young AI Startups

    Endiya is a venture capital firm founded with a clear mission to support scalable product companies. The firm has remained steadfast in its commitment to identifying and backing exceptional entrepreneurs with transformative ideas since its inception. Endiya actively seeks entrepreneurs with deep technical expertise and a bold vision for innovation. 

    What sets Endiya apart from others is its focus on identifying and capitalizing a long-term, market-creating trends ahead of others. This approach is informed by the team’s extensive experience and industry know-how. The firm provides financial support, operational guidance, and strategic insights to its portfolio companies.

    Moreover, Endiya’s hands-on approach to investing distinguishes it from other venture capital firms. The team prides itself on being operator VCs, seasoned entrepreneurs, and operators who leverage their collective expertise to partner actively with portfolio companies.

    They work alongside founders as true partners and assist them with critical decisions around strategy, hiring, fundraising, and more. 

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    3. Aeravti Ventures

    Founded By Ashish Sharma and Ashish Aggarwal
    Founded In 2022
    Headquartered At Bangalore, India
    Website www.aeravti.com
    Aeravti Ventures - Top VC Fund Supporting India's Young AI Startups
    Aeravti Ventures – Top VC Fund Supporting India’s Young AI Startups

    Aeravti Ventures is a SEBI-registered Alternative Investment Fund that is dedicated to providing support to early-stage businesses that not only generate financial returns but also have a positive impact on industries, society, and the planet.

    The firm is committed to investing in entrepreneurs who leverage deep technological expertise to build businesses driven by intellectual property.  Through its investments, Aeravti Ventures is actively contributing to advancing technology and innovation, fostering growth and differentiation in the market.

    The firm focuses on backing changemakers and pioneering deep, climate, and agri-tech solutions. It plays a crucial role in shaping industries and positively impacting society and the planet. 

    By backing early-stage businesses with a strong focus on innovation and sustainability, Aeravti Ventures is helping to create a brighter future for future generations.

    With a team of experienced professionals passionate about supporting innovative businesses’ growth, the firm is committed to driving positive change and promoting long-term success for its portfolio companies.


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    4. pi Ventures

    Founded By Manish Singhal and Umakant Soni
    Founded In 2016
    Headquartered At Bangalore, India
    Website www.piventures.in
    pi Ventures - Top VC Fund Supporting India's Young AI Startups
    pi Ventures – Top VC Fund Supporting India’s Young AI Startups

    pi Ventures is a venture capital firm that focuses on helping entrepreneurs build innovative businesses in the DeepTech space. Their team, consisting of former entrepreneurs, understands the challenges startups face and provides funding, access to talent, and an ecosystem that encourages success.

    They pride themselves on supporting disruptive companies with bold and innovative ideas that have the potential to change the world. One of their critical criteria for selecting startups is their ability to tackle significant and fundamental challenges on a global scale.

    They encourage entrepreneurs to think beyond local markets and leverage their international network to build global companies. pi Ventures is particularly interested in supporting category leaders who are utilizing AI to differentiate themselves.

    With the world shifting towards digital adoption and remote work, the firm believes that AI is at the second inflection point of its evolution. They are keen on identifying and investing in startups capitalizing on this trend, focusing on accelerating and emerging AI use cases across various industries and regions.

    5. Together

    Founded By Girish Mathrubootham
    Founded In 2021
    Headquartered At Bangalore, India
    Website www.together.fund
    Together - Top VC Fund Supporting India's Young AI Startups
    Together – Top VC Fund Supporting India’s Young AI Startups

    The venture capital firm Together follows a founder-first approach and operates similarly to a tech startup. Its investment focus encompasses various sectors such as software-as-a-service (SaaS), enterprise software, developer tools, open-source software, cloud-native infrastructure, and API-first businesses.

    The firm primarily invests in early-stage companies, spanning from seed to pre-Series A or Series A rounds, to guide and support founders during the crucial zero-to-one phase of their entrepreneurial journey. 

    The selection of sectors reflects the diverse expertise and backgrounds of its founding partners, who bring a wealth of industry experience.

    These partners include Girish Mathrubootham, who co-founded Freshworks; Manav Garg, founder of Eka Software; Shubham Gupta, who formerly led SaaS deals at venture capital firm Matrix Partners India; and Avinash Raghava, founding volunteer at SaaSBOOMi and co-founder of iSPIRT.

    6. Hyderabad Angels (HA)

    Founded By NA
    Founded In 2012
    Headquartered At Hyderabad, India
    Website www.hyderabadangels.in
    Hyderabad Angels (HA) - Top VC Fund Supporting India's Young AI Startups
    Hyderabad Angels (HA) – Top VC Fund Supporting India’s Young AI Startups

    Hyderabad Angels (HA) has established itself as a prominent and reliable platform in India’s startup ecosystem. Since its inception in 2012, the organization has been dedicated to supporting and nurturing aspiring entrepreneurs by bridging the gap between them and established angel investors.

    Over the years, HA has transformed into a dynamic force that invests in promising startups globally to create tangible and intangible value.

    Even though HA is headquartered in Hyderabad, it operates across a wider geographical area, sourcing and investing in opportunities from different regions of India and overseas destinations such as the USA, UK, Singapore, and UAE.

    Its global outlook enables it to tap into diverse markets and opportunities, fostering a rich innovation and growth ecosystem.

    HA’s investor community comprises leading venture capitalists, seasoned entrepreneurs, and business leaders who bring their combined financial and business acumen to support the growth of Indian and global startups.

    The organization firmly believes in building a symbiotic partnership between investors and entrepreneurs, where support for investee organizations becomes a cornerstone of their services.

    The investors associated with HA are committed to providing financial assistance and offering guidance, mentorship, and networking opportunities to the startups in which they invest.

    The Graph Shows the Number of AI Startups in India from May 2021 to May 2023
    The Graph Shows the Number of AI Startups in India from May 2021 to May 2023

    7. Arkam Ventures

    Founded By Rahul Chandra and Brij Bhasin
    Founded In 2020
    Headquartered At Bangalore, India
    Website www.arkamvc.com
    Arkam Ventures - Top VC Fund Supporting India's Young AI Startups
    Arkam Ventures – Top VC Fund Supporting India’s Young AI Startups

    Arkam Ventures is a venture capital firm committed to driving innovation in India by partnering with visionary founders who are passionate about creating a better future.

    The company focuses on long-term investment strategies, often spanning multiple decades, to identify market trends, inflection points, and disruptive solutions that can potentially create large, scalable, and profitable market leaders. 

    The firm is driven by two central investment themes: massive market drivers, innovation-proof points, and clear opportunities for digital disruptors to reshape existing industries or create new ones.

    One of these investment themes is Middle India Digitization, one of today’s most considerable global investment opportunities. This theme encompasses a significant shift towards digital transactions across essential categories that were non-existent just five years ago. 

    In addition to this, Arkam Ventures is also keen on supporting SaaS (Software as a Service) companies from India to the world. These companies leverage world-class product design, cost-effectiveness, and savvy go-to-market approaches to create innovative software solutions that can compete globally. 


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    8. GRAYSCALE VENTURES

    Founded By Siddharth Verma and Nikhil Kapur
    Founded In 2023
    Headquartered At Bangalore, India
    Website www.grayscale.vc
    Grayscale Ventures - Top VC Fund Supporting India's Young AI Startups
    Grayscale Ventures – Top VC Fund Supporting India’s Young AI Startups

    GRAYSCALE VENTURES is a prominent player in India’s venture capital landscape, specializing in providing Pre-Seed funding to startups with a dedicated focus on Developer Infrastructure.

    The firm’s investment thesis revolves around Core and Vertical Infrastructure, DevTools, and AI infrastructure companies based in India, offering cheque sizes ranging from $300k to $1M. 

    A consortium of global tech founders and operators supports GRAYSCALE VENTURES. It operates as a collaborative force, actively leading rounds and co-building products with its portfolio companies.

    The firm is headquartered in Bangalore, India. It is the country’s sole Developer Infrastructure-focused VC entity, managing $40M in assets under management (AUM). It primarily targets the founding stage (Pre-Seed/Seed) startups.

    What sets GRAYSCALE VENTURES apart is its unwavering commitment to nurturing and growing the next generation of infrastructure startups in India. The firm’s mission is to provide the necessary resources and support to early-stage startups in India’s tech ecosystem to help them succeed in the long run. 

    GRAYSCALE VENTURES boasts a track record of successful investments in notable Dev Infra/SaaS startups from India, including Hasura, 100ms, and TestSigma.

    Its robust financial backing is derived from global investors, including founders and operators from renowned companies such as Slack, Zendesk, Hasura, Freshworks, and Github, among its supporters. 

    9. CapFort Ventures

    Founded By Abhimanyu Bisht and Kavit Sutariya
    Founded In 2023
    Headquartered At Gurgaon, India
    Website www.capfort.vc
    CapFort Ventures - Top VC Fund Supporting India's Young AI Startups
    CapFort Ventures – Top VC Fund Supporting India’s Young AI Startups

    CapFort is a company that supports innovative and daring entrepreneurs who want to challenge the ordinary. The company believes that the most exciting and impactful ideas come from passionate and driven visionaries with a bold outlook for the future.

    CapFort collaborates with these dynamic entrepreneurs, serving as a strategic partner in their journey toward building successful businesses. Beyond providing financial support, the company offers expertise and guidance to entrepreneurs, aiding them in navigating the challenges of entrepreneurship and realizing their visions.

    As an integral part of India’s vibrant startup ecosystem, CapFort is dedicated to fueling its growth and success. The company draws inspiration from the trailblazing entrepreneurs it collaborates with, who constantly challenge conventions and strive to create positive change in the world.

    CapFort remains committed to supporting these entrepreneurs at every stage of their journey, assisting them in achieving their goals and unlocking their full potential.

    CapFort is led by Abhimanyu Bisht, former CEO of Venture Catalysts, who brings extensive experience in angel fund investment evaluation. The company is further strengthened by the expertise of Kavit Sutariya, founder of Hiraco Ventures.

    With a portfolio spanning over 72 investments across various sectors and startup stages, Kavit Sutariya’s insights and leadership enhance CapFort’s ability to identify and nurture promising ventures.

    10. Speciale Invest

    Founded By Vishesh Rajaram and Arjun Rao
    Founded In 2016
    Headquartered At Chennai, India
    Website www.specialeinvest.com
    Speciale Invest - Top VC Fund Supporting India's Young AI Startups
    Speciale Invest – Top VC Fund Supporting India’s Young AI Startups

    Speciale Invest is a fund that invests in deep tech solutions and engineering innovation. They take a people-first approach and value visionaries who can articulate the strength and potential of their ideas effectively.

    They invest in solutions that haven’t existed in the past and seek out exponential innovations that simplify and enhance the world. 

    Their investment strategy prioritizes founders with deep domain insights and a solid motivation to succeed. They typically invest between $100 to $500K in multi-disciplinary technologies such as Enterprise Software & SaaS and Frontier Tech. 

    Beyond capital, they offer their portfolio companies access to early customers, assistance with hiring early team members, support in raising follow-on capital, industry updates, and active partnership in the companies’ progress.

    11. Equirus

    Founded By Ajit Deshmukh
    Founded In 2007
    Headquartered At Mumbai, India
    Website www.equirus.com
    Equirus - Top VC Fund Supporting India's Young AI Startups
    Equirus – Top VC Fund Supporting India’s Young AI Startups

    Equirus, pronounced as ek-wi-rus, derives its name from the idea that “Equities are us”, reflecting its deep commitment to financial markets. The firm’s philosophy, encapsulated by the Banyan Tree Philosophy, symbolizes its aspiration to foster an entrepreneurial organization where individual contributions flourish independently yet seamlessly integrate with the overarching mission.

    Much like the aerial prop roots of a banyan tree, Equirus aims to thrive and endure over generations while providing strength and shelter to its ecosystem.

    Throughout its journey, Equirus has gained an exceptional reputation and market standing across various domains, distinguishing itself for its proficiency in structuring and executing transactions tailored to meet clients’ needs.

    Rooted in a set of core values, including client-centricity, integrity, trust, innovation, transparency, team spirit, and excellence in execution, Equirus remains steadfast in its commitment to achieving its vision.

    Equirus’ vision is to become the most preferred Investment Bank by prioritizing focus, innovation, and trust. With a mission to deliver exceptional value and service to its clients, Equirus strives to uphold its reputation as a trusted partner in navigating the complexities of the financial landscape. 

    12. GOOD CAPITAL

    Founded By Arjun and Rohan Malhotra
    Founded In 2019
    Headquartered At Delhi, India
    Website www.goodcapital.vc
    Good Capital - Top VC Fund Supporting India's Young AI Startups
    Good Capital – Top VC Fund Supporting India’s Young AI Startups

    GOOD CAPITAL is a venture capital firm, specializing in intermediary-led business models. They focus on using intermediaries to provide a high-touch, human interface to consumers, enhancing the overall consumer experience.

    GOOD CAPITAL invests in startups from the concept stage to Series A, particularly interested in founders with practical knowledge and insights from their respective industries.

    Although GOOD CAPITAL does not limit itself to any specific sector, the company prefers to invest in technology products that address India-centric problems. This approach reflects the firm’s dedication to supporting innovative solutions that can significantly impact the Indian market.

    GOOD CAPITAL aims to promote visionary entrepreneurs and develop disruptive solutions that address the ever-changing needs of the Indian consumer landscape. By maintaining a diverse portfolio and being flexible in their investment strategy, the company strives to achieve its objectives.


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    Conclusion

    India’s startup ecosystem is experiencing a remarkable surge, particularly in the field of artificial intelligence (AI), with numerous ventures poised to transform industries through innovation. The success of these startups hinges not only on groundbreaking ideas and talented teams but also on significant financial backing from venture capital (VC) firms.

    As India continues to emerge as a hub for technological innovation, the collaborative efforts of these VC firms play a pivotal role in nurturing and propelling the next generation of AI startups toward success, driving positive change, and fostering sustainable growth in the country’s tech ecosystem.

    FAQs

    How many Unicorn startups are there in India?

    It is stated that India is home to 112 Unicorns as of the start of 2024 as per the data shared by StartupTalky.

    Which company invested in Zepto?

    Zepto has raised its funding from multiple firms throughout its journey. Firms like StepStone Group, Goodwater Capital, Nexus Venture Partners, Glade Brook Capital, Lachy Groom, etc. are known to invest in Zepto.

    Which startup sector is growing fast in India?

    India has a wide range of opportunities for multiple startup sectors to rise. Some of the most common fastest-growing startup sectors in India are FinTech, EdTech, E-commerce, and artificial intelligence.

    Does the Indian government provide funds for startups?

    Yes, the Indian government provides multiple schemes and subsidiaries in order to provide financial aid to startups.

  • Government GPU Cluster Plan: Industry Cheers but Roots for Upskilling

    The Indian government’s plan of setting up graphic processing unit (GPU) clusters for startups in the artificial intelligence industry may be a step in the right direction but will reap benefits only when complemented with adequate development of skills and technical know-how across the country, according to a few industry experts that StartupTalky spoke with.

    On September 22, Union Minister Rajeev Chandrasekar said the government plans to set up a major GPU cluster under the India AI (Artificial Intelligence) program. There have also been media reports citing that the officials in the Ministry of Electronics and IT have been discussing a proposal to set up a cluster of 25,000 GPUs under a public-private partnership (PPP model) for AI start-ups.

    Unlike CPUs (Central Processing Unit) of a computer which performs simple computations; GPUs perform more complex and heavy computations. For instance: processing images, special effects, highly intensive applications such as video games, and artificial intelligence.

    AI Boom
    Skills – Need of the Hour
    Skill Development Initiative

    AI Boom

    At a time when the AI sector in India is expected to boom, this move by the government has sent a wave of initial optimism among startups and industry leaders. 

    “…this forward-thinking initiative could be a game-changer for India’s AI startups, including companies such as Josh in the content creation space,” said Sunder Venketraman, Head of Content, Creator and Monetization Ecosystem, Josh App, VerSe Innovation. “At Josh, we’ve been leveraging AI to empower creators across Bharat and this development gives the motivation and confidence in the future of content creation in the country,” Venkataraman said.

    The International Market Analysis Research and Consulting Group expects the AI market in India to witness a sharp growth of around 33% during 2023-2028 to touch $3.9 billion by 2028.

    As of now, the key manufacturers in the GPU market are NVIDIA and AMD, both headquartered in California. According to global trade data provider Volza, India is the top importer of GPUs in the world as of May 2023. As of May 31, India’s GPU imports stood at 31,022 shipments.

    There has been a sudden surge in demand for GPUs as AI companies look to integrate them into applications and programs. During his recent visit to India, Nvidia Corp. Chief Executive Officer Jensen Huang touted India to be “One of the largest AI markets in the world”.

    “India will have to walk on both legs, balancing manufacturing as well as the service sector, with the private sector driving the tailwinds of the Indian economy,” said CRISIL chief economist D.K. Joshi.

    Setting up GPU clusters will eventually translate into speedier processing and a shorter turnaround time for processing vast data.

    Skills – Need of the Hour

    However, as automation and the AI industry mushroom in the country, there is a dire need to develop skills to complement this change.

    Partner at Optimyze Finance LLP Manu Gupta told StartupTalky, “This is an important move as the world is coming to consume content in the video. The world is less about text today and moving about images and video. Tax incentives are a very powerful tool that the government has, to attract investment. But at the end of the day, this is a very knowledge-based industry. It is the skills of the people which will make somebody set up shop.”

    Recently, JLL in its report said it expects India’s data centre industry to add 693 MW of capacity by the end of 2026. This sharp rise is expected on the back of increasing digital growth, digital public infrastructure, 5G rollout, and new AI applications like machine learning coupled with data protection laws and state incentives.

    “To use the automation, I need to have the skill set. This learning process needs to be imparted to people. I need manpower for AI, which needs to be implemented right at school and college levels to develop the skill set. Secondly, general people need to be educated through ads or public awareness, training programs on how to simultaneously upgrade or update AI process and skill sets,” said the India operations Chief Financial Officer of a large France-based digital solutions company who requested anonymity.

    Skill Development Initiative

    Recognising this need, Prime Minister Narendra Modi during the recently concluded Group of 20 countries meeting in September called for a huge thrust on upskilling during his interaction with the labour ministry officials.

    “We all need to skill our workforce in the use of advanced technologies and processes. Skilling, re-skilling and upskilling are the mantras for the future workforce. In India, our Skill India Mission is a campaign to connect with this reality,” Modi said. 

    The government has also recently launched the Skill India Digital program which is an online platform to encourage skill development, education, employment, and entrepreneurship within the country.

    Earlier this year, the government also launched “AI for India 2.0”, an online free training program on AI in vernacular languages. This is a joint initiative by GUVI (Grab Your Vernacular Imprint–an IIT Madras and IIM Ahmedabad incubated education technology company) and Skill India.

    Looks like the beginning of a long road to upskilling and learning for a digital India. 


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