The IndiaAI Mission, under the Ministry of Electronics and Information Technology (MeitY), organized a roundtable discussion in New Delhi on August 27, 2024, to explore the manner through which artificial intelligence (AI) is transforming and empowering startups in India and exploring the potential opportunities for their growth. 

Speakers at the event titled "AI Innovate: Empowering Tomorrow's Startups," included Shri Jitin Prasada, Minister of State, MeitY and Ministry of Commerce and Industry; Shri S. Krishnan, Secretary, MeitY, Shri Abhishek Singh, Additional Secretary, MeitY; Shri Jayesh Ranjan, Special Chief Secretary, Government of Telangana; Ms. Kavita Bhatia, Group Coordinator and IndiaAI COO; Ms. Debjani Ghosh, President, NASSCOM, and Distinguished Fellow, Niti Aayog; and Dr. Chintan Vaishnav, Chair, Startup20, Engagement Group (G20 India Presidency), and Additional Secretary, NITI Aayog. 

Representatives from more than 20 startups and industry experts also participated in the event. Venture capital firms, including Blume Ventures, Indian Angel Network, and Bharat Innovation Fund, big tech players including Nvidia, Google and Microsoft, and AI start-ups like Jivi.ai, Qure.AI, Karya and DronaMaps were also present.

While delivering the welcome address, Shri Abhishek Singh highlighted that the objective of the round table discussion was to generate and explore ideas for developing a plan to address the gap in AI startup financing. The focus was to brainstorm potential solutions and strategies to enhance funding opportunities for AI startups.

Utilizing India's Talent Pool

The discussion underscored the immense potential of rural India as a significant contributor to AI development, capitalizing on the country's vast talent pool. The participants underscored that the high cost of computing resources poses a critical barrier to realizing this potential. To address this, there is a pressing need for targeted support, including access to impactful solutions, mentorship in data and domain expertise, and regulatory clarity.

MoS Jitin Prasada praised India's fifth global ranking in AI startup investments according to Stanford Index report. He emphasized the role of startups from smaller cities and the importance of stakeholder collaboration.

The roundtable identified that the government's role is crucial in making India a leader in deep tech and AI, not just as a market player but also as a provider of curated datasets and subsidized computing resources.

Highlighting her points on inclusivity, sustainability, and resilience in AI, Ms. Debjani Ghosh emphasized the importance of intellectual property, access to resources, and transforming education to foster AI leadership.

A Collaborative Effort

The speakers noted that collaboration between state and central government is essential, alongside structured funding initiatives, such as a "fund of funds," to foster the AI ecosystem. Participants stressed that government procurement could serve as a powerful catalyst for innovation. Academic and startup grants should not be separate; research and development must go together.

The speakers highlighted the growing need to support AI startups that address India-specific challenges, leveraging local data and insights. Startups that create scalable AI applications for rural and semi-urban markets, such as predictive analytics for yields or AI-powered educational tools, can drive significant social and economic impact.

Supporting Startups

The participants mentioned that high failure rate of startups, particularly in AI, often stems from poor execution and a lack of genuine innovation. A move from grant-based funding to a more process-driven model with better validation is necessary was also emphasised. Grants should be discouraged, and equity-based investments should be adopted was an echoed sentiment

The roundtable concurred that the government should create a registry of startups to identify and recognize AI startups. This will encourage the credibility of startups in the ecosystem for investors and the public.

The discussion highlighted the potential of rural India as a major contributor to AI development, leveraging the country's vast talent pool. 

The roundtable discussed that India's potential in AI is vast, with 70% of tech startups incorporating it. To harness this potential, tailored support, including access to computing power, high-quality data, and market connections, is crucial. The roundtable was a welcome first step in this endevour.