Introduction
India has rapidly positioned itself as a major contender in the global artificial intelligence (AI) race. With a vast talent pool, expanding digital infrastructure, and strong government push toward innovation, the country appears primed for an AI-driven transformation. Yet, despite the optimism, investor enthusiasm has not translated into proportional funding momentum.
This paradox—high potential but cautious capital—raises a critical question: why are investors holding back from fully committing to India’s AI boom?
A Market Full of Promise
India’s AI ecosystem has grown significantly over the past five years. According to industry estimates, the country is home to over 1
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