The share of artificial intelligence (AI) and deeptech startups in overall recognitions under the Startup India programme rose only marginally in FY26, suggesting limited movement towards high-technology ventures despite policy emphasis, even as total registrations crossed 55,200.

The trend is based on an analysis of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) by sector and date of incorporation. DPIIT does not provide a year-wise break-up.

Deeptech startups, including those in core AI, robotics and semiconductor design, accounted for about 5–7% of total recognitions in FY26, compared with roughly 4–5% in FY25, an analysis of the data shows. AI-linked startups, largely classified within IT services and software, rose to around 15–18% from about 12–14% a year earlier.

What do analysts say?

Analysts said the increase of one to three percentage points across categories indicates an incremental shift rather than a meaningful change in the composition of newly recognised ventures.

The limited change comes despite sustained policy signalling to steer startups towards advanced technology segments. Commerce and Industry Minister Piyush Goyal had last year criticised the ecosystem’s tilt towards consumer-oriented models such as food delivery and quick commerce, questioning whether such ventures represented the “destiny of India” and calling for greater focus on areas such as semiconductors, robotics and machine learning.

Analysts said that the trend is not fully captured in official disclosures as AI is not classified as a separate category by DPIIT, with most such startups grouped under IT services or related segments. Even so, the available data suggests that services-led models continue to dominate new recognitions, with sectors such as commerce, healthcare, education and agriculture accounting for a bulk of additions.

What do Industry observers say?

Industry observers said the slow shift reflects structural constraints, including longer gestation periods, higher capital requirements and limited domestic risk capital for deeptech ventures. In contrast, consumer Internet and services startups typically scale faster and require lower upfront investment, continuing to attract a larger share of new founders.

According to analysts, the modest rise in the AI and deeptech share indicates that the startup ecosystem’s transition towards high-technology areas remains gradual. Without sharper changes in funding patterns and market depth, the composition of new startup recognitions is likely to remain weighted towards services in the near term.