India’s AI Uprising: GenAI, AI Agents & The Future Of Startups, Report 2025

India’s AI startup ecosystem has grown rapidly, with over $1.5 Bn raised by native startups between 2022 and Q1 2025. However, this surge in capital has largely favoured application-layer solutions (nearly 80%) — tools, platforms, and use-case driven AI products, rather than core infrastructure, i.e., foundation models, chipsets, cloud platforms, and compute infrastructure. As global powers double down on sovereign AI, India risks falling behind unless it actively backs its foundational AI stack. This report maps India’s AI landscape across funding, talent, infrastructure, and policy, and offers a clear-eyed view of where the gaps lie — and what it will take for India to not just adopt AI, but lead it.