Abstract

Artificial Intelligence (AI) has emerged as a disruptive force in the global economy, reshaping industries, driving innovation, and creating new avenues for sustainable development. AI-led start-ups in India are making significant contributions towards realising the vision of ‘Atmanirbhar Bharat’ (Self-Reliant India) through building indigenous technologies, creating jobs, enhancing productivity and reducing dependence on imported digital solutions. This paper explores the role of AI startups in India’s journey from technology adoption to technology creation, with innovative applications in sectors such as healthcare, agriculture, education, finance, manufacturing, logistics and public governance. The research is based on secondary data collected from government reports, policy documents, industry publications, startup ecosystem reports and scholarly literature. It examines the policy ecosystem that promotes AI entrepreneurship such as Startup India, Digital India, National AI Mission and other innovation-led programmes. The analysis observes that AI startups are not just accelerating digital transformation but are also boosting research capabilities, building skilled human capital, encouraging indigenous product development and boosting India’s global competitiveness. The paper also highlights current challenges including availability of quality datasets, funding constraints, regulatory uncertainties, cybersecurity, ethics, and scarcity of advanced AI talent. “But for the AI startup ecosystem to thrive in the long run, we need continued investment in research and development, greater collaboration between industry and academia, responsible governance of AI, improved digital infrastructure and enabling public policies,” the study said. It argues that India’s transition from writing code to building technological capability will depend on nurturing innovative enterprises that combine technological excellence with social impact, thereby reinforcing the country’s aspiration to be a globally competitive and self-reliant knowledge economy.