Recent policy initiatives, investment activity and market data point to notable developments across various technological and economic sectors. Developments across artificial intelligence, clean energy and venture capital will help pave the way for India’s competitiveness in the years to come, reflecting a maturing economy that is scaling domestically while positioning itself as a global partner for innovation, sustainability and long‑term growth.
Expanding artificial intelligence
The Indian government recently hosted the AI Impact Summit (16 – 20 February), which brought together global technology leaders, policy makers and investors for conversation on responsible and inclusive AI usage. During the summit, there was a strong emphasis on investing in India’s AI infrastructure, with leading global tech firms committing investment and entering strategic partnerships with Indian groups, including OpenAI and the Tata Group. This momentum comes as India consolidates its position as a leading AI hub, currently ranking third in a global AI power index compiled by Stanford University’s Institute for Human-centered AI.
This momentum is reinforced by a government‑led strategy to position AI as digital public infrastructure. Via the IndiaAI Mission, India is investing in shared GPU access and multilingual AI platforms to create secure, reliable sovereign AI platforms. This signals a long‑term commitment to inclusive, population‑scale AI adoption as a core pillar of its economic and technological growth.
Renewable energy growth
Clean energy remains central to India’s growth strategy, with renewable sources reportedly accounting for 75% of the country’s new power capacity additions this financial year. Installed solar capacity has reached approximately 135 GW, while wind energy capacity stands at just over 54 GW, reinforcing India’s position as one of the world’s largest renewable energy markets.
Additionally, India is advancing several pilot projects under its National Green Hydrogen Mission, which supports broader decarbonisation objectives, including sourcing 50% of energy capacity from non‑fossil fuels and achieving 500 GW of fossil fuel–free generating capacity. Together, these initiatives reflect the Indian government’s ambition to accelerate the clean energy transition and establish India as a global leader in renewable and green hydrogen technologies.
Venture capital developments
India’s venture capital landscape is also gaining traction, with both deal volumes and values rising in 2025 despite a global dip in deal counts. The government has recently approved a USD 1.1 billion state-backed venture capital program, with a focus on advanced manufacturing and deep tech. This policy support is increasingly aligned with national priorities such as AI and deep tech, sectors that continue to outperform broader venture markets. In 2025, AI became a key focus in the venture capital space, with its share of India’s venture capital funding rising to around 12%, up from below 5% in 2020, as reported by the India Deep Tech Alliance. That same report also found that about 15% of all VC activity in India related to deep tech, not just including AI, but also space technologies, energy systems, defence and more, highlighting a shift toward technology‑driven investment. This indicates that India's venture capital market is presently demonstrating alignment between private investment activities and public policy, reflecting the nation's strategic priorities.
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We would like to thank Alex Alaniz, Gianni Vettorello and Amrish Sharma for their contributions to this article.
While we do not practice Indian law as per the country’s current regulatory framework, we have strong relationships with leading Indian law firms with whom we collaborate to provide a seamless service to our clients. If you have queries on any of the issues covered in this article, please do get in touch with me.
