India Aims to Become a Global Leader in AI Products
Experts at a recent Confederation of Indian Industry (CII) event emphasized that India should harness the power of artificial intelligence (AI) to become a major player in product development. While the country has made strides in engineering and software services, a deeper focus on the complete product lifecycle—from design to manufacturing—is needed, according to Kamal Bali, chairman of the upcoming CII Innoverge 2026 summit in Bengaluru on July 22 and 23.
Bali highlighted the necessity of transforming India into a significant global product hub, integrating AI into various functions, and relying on three key components: innovation, trust, and technology. He pointed out that India’s strong research institutions, favorable government policies, large domestic market, skilled workforce, and strong manufacturing capabilities create a solid base for this change.
Kris Gopalakrishnan, a former CII president and co-founder of Infosys, discussed how AI can be a game changer in helping India transform into a product nation. He acknowledged that while AI disrupts job markets, it also creates new chances for growth.
When asked about the biggest challenge facing India’s transition to an AI-driven product economy, Gopalakrishnan cited the need for more investments. Despite an increase from a few startups to over 200,000, including 4,500 in deep tech, funding remains a hurdle. Indian startups typically receive between ₹1 crore to ₹2 crore ($100,000 to $200,000), while similar startups in the U.S. can secure up to $20 million. This discrepancy highlights the urgency for more domestic and foreign investment in education, research, and AI infrastructure.
Gopalakrishnan also pointed out that India’s exports are still mostly in IT services. He emphasized that developing local technologies backed by research and intellectual property is crucial for growth. Furthermore, he noted the importance of creating a strong ecosystem for research, development, and innovation, involving industry, academic institutions, startups, and entrepreneurs.
Rabindra Srikantan, a former CII chairman, mentioned India’s robust digital groundwork and expanding manufacturing sector, stating that the country is well-positioned to excel in AI and deliver practical, sustainable solutions. Sam Cherian, vice-chairman of the CII Karnataka State Council, highlighted that innovation is no longer limited to labs but is now essential across various sectors, including manufacturing, healthcare, energy, and more. He stressed that it’s vital for small and medium-sized enterprises (MSMEs) to adopt innovative practices as India moves towards an AI-driven economy.
The upcoming Innoverge 2026 summit, themed “Transforming India into an AI-Led Product Nation: Innovation, Trust, and Technology,” aims to expedite India’s evolution from being recognized mainly for IT services to becoming a globally acknowledged product nation fueled by innovation and research in AI.
The conclave will address topics such as next-gen mobility, including software-defined vehicles, biotechnology, pharmaceuticals, and sectors like aerospace and defense, which hold significant export potential.
