By Keshav Murugesh
About a year ago, India minted its first AI unicorn — Krutrim — which aims to build the country’s first complete AI computing stack. Its base large language model (LLM) claims to have the largest representation of Indian data to power Gen AI applications for all Indian languages.
GenAI has given India’s entrepreneurial spirit a powerful boost. Since 2020, over 200 GenAI startups have raised more than $1.2 billion. Tier-2 and Tier-3 cities are emerging as innovation hubs and comprise nearly 40% of the tech startup landscape. Today, GenAI is empowering a new wave of digital entrepreneurs across India, with 56% of startup investors ready to invest in AI and GenAI segments.
The acceleration of business creation through AI tools has been remarkable. A Hostinger study reveals that AI tools have accelerated business launches, with 40% of entrepreneurs establishing their businesses in under a month. AI solutions are becoming the essential ‘picks and shovels’ of modern business, enabling even the smallest enterprises to compete in the digital marketplace.
Content generation, for example, is one of the most impactful uses of GenAI for startups and small businesses, providing access to professional-grade marketing with a consistent online presence, SEO-optimised blogs and engaging social media posts. AI-powered analytics delivers valuable insights into customer behaviour, market trends and business performance, enabling data-driven decision-making and more effective strategies.
In its 2024 report, the World Bank recognised India’s increasing digital capital as a major driver of entrepreneurship, business income and social mobility — bringing benefits to small vendors and economically lagging districts. Digital technologies have built digital footprints of online payments that enable individuals to establish financial credibility and creditworthiness.
The State of India’s Digital Economy (SIDE) 2024, with its CHIPS framework (Connect-Harness-Innovate-Protect-Sustain) to measure digitalisation of nations, ranks India as the third largest digitised country in the world. Inclusion is a major factor in this ranking, contributing 66% to India’s total score. For example, Niramai with its AI-powered, non-invasive breast cancer detection solution, Thermalytix, has made healthcare accessible to all.
India’s surge towards becoming a $26 trillion economy over the next two decades rests heavily on its AI leadership. Indian digital entrepreneurs are leveraging AI to combine traditional Indian market knowledge with cutting-edge technology and develop innovative offerings tailored to local needs. In Tier-2 and Tier-3 cities, where access to resources and opportunities has historically been limited, AI is empowering individuals to launch and grow their businesses online for a more equitable digital economy.
The listing of Indian startups such as Pixxel, Sarvam AI and Niramai among WEF’s 100 Technology Pioneers underscores India’s growing influence in applying AI to sectors like clean energy, healthcare, biotech, space and neurotechnology. Undeniably, India has arrived on the global stage as a leading hub of digital entrepreneurship.
The writer is Group CEO, WNS.
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