Funding
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India's Budget 2026 faces a critical test as 88 percent of GenAI capital flows to late-stage firms,...
The AMW Read
The article highlights a structural capital imbalance in the Indian AI ecosystem and signals a state-led push for sovereign AI through the IndiaAI mission fund.
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India's Budget 2026 faces a critical test as 88 percent of GenAI capital flows to late-stage firms, leaving seed-stage founders behind. Although total AI investment reached 1 billion dollars last year, early-stage funding plummeted by 30 percent in 2025. This systemic squeeze risks stalling the nation's transition from an AI service provider to a global product leader. Doubling the IndiaAI mission fund to 5,000 crore rupees is vital to securing deep-tech sovereignty by 2027. 🇮🇳