It is difficult to deny the fact that Indian startup ecosystem are taking over the world. They are pushing India higher in ranking when it comes to tech innovations. In the Critical Technology Tracker report by the Australian Strategic Policy Institute (ASPI), India is among the top five countries facing the tech game in out of 64 critical technologies (source). This means there has been tech development in 45 sectors, including biological manufacturing, distributed ledger technology, AI, blockchain, sustainable technology, and more.
Mind you, these do not just originate from metro cities alone. As per research, 40% of the Indian tech startups belong to tier II and III cities like Raipur, Jaipur, Chandigarh, Visakhapatnam, and more. The study also highlights that 77% of these successful startups invest in incorporating advanced technologies like AI, blockchain, ML, and IoT into their working system to enhance their operations, profits, and quality of products/services.
At the Global Startup Summit event organized by 21BY72, we witnessed some Indian startups leveraging these advanced technologies to create innovative solutions and secure funding from investors. Let’s look at some of the trending and emerging technologies in India.
Tech Trends Dominating the Indian Startup Ecosystem
Whether it’s agriculture, healthcare, or finance, we tech-savvy Indians have revolutionized how we do things. In 2023, there were twice as many deep tech startups in India compared to 2022 due to infrastructure supporting tech innovation growth.
While there were many technologies applied, a few dominated the market. Let’s look at the top three technologies used by Indian startups to create innovative solutions:
1. AI Technology in India
Is AI now as common as electricity? The AI trends in Indian startups are noteworthy, considering that 74% of the 480 Indian deep tech startups established in 2023 were based on AI technology. AI-based startups use machine learning, natural language processing, and computer vision to create
revolutionizing technologies in sectors like healthcare, manufacturing, finance, and more. The primary focus is creating an ecosystem with resources needed for the AI-based solutions to work and the startups to thrive. According to NASSCOM, the AI market will be worth $17 billion by 2027.
A few successful Indian startups in the AI industry or using AI to create innovative solutions are Krutrim and Sarvam AI, which are creating LLMs based on Indian languages; Expertia AI, which created an AI-powered AI platform to automate the recruitment process; and Neysa Networks, which offers a generative AI platform with diverse services to businesses using AI and ML.
2. Blockchain Technology in India
Blockchain trends in India are revolutionizing how we do stuff by creating a decentralized system to build trust with transparency. Blockchain technology in India allows different entities, including the government, businesses, and customers, to share information securely without the intervention of any third party. The industry is forecasted to grow at a CAGR of 89.4% between 2023 and 2030. The finance and supply chain management industries are the most efficient in utilizing the power of blockchain to streamline operations and create unique solutions like NFTs and decentralized finance (DeFi).
The Reserve Bank of India (RBI) developed the e-rupee, or e-INR, in December 2022, using blockchain distributed ledger technology. Some examples of Indian startups in blockchain are GovBlocks.io, which is a permissionless protocol for decentralized governance that provides blockchain solutions for enterprises without any coding skill requirement, and Ezyremit, which is creating blockchain-based fintech for the remittance market.
3. Green Technology in India
Sustainable tech startups in India are on the rise primarily due to the government’s supportive policies. To meet its Net Zero by 2070 target, the
government works with its multiple departments, including the Ministry of Environment, Forest, and Climate Change (MoEF&CC), the Department of Science & Technology, and the Ministry of Science & Technology.
Green technology in India is associated with renewable energy, transportation, water management, waste management, agriculture, and material science. The Indian green tech market is expected to grow with a CAGR of 32.9% between 2024 and 2030.
Some examples of green tech Indian startups include altM, dedicated to making sustainable material from agricultural by-products; BamBrew, creating sustainable packaging for food; Buyofuel, converting biomass waste into sustainable biofuels; RenKube, using motion-free optical tracking technology to build efficient solar panels; and Tessol, providing sustainable solutions for cold-chain products like dairy, seafood, and horticulture.
How does the Indian Startup Ecosystem support these emerging technologies?
Earlier this year, the Ministry of Information and Technology announced that India will invest $1.2 billion in the AI industry to fund projects in the country (source). The aim is to empower and promote AI trends in Indian startups and boost India’s position as an AI leader. Furthermore, under their AI First cohort, Google took in 20 AI-based startups to provide equity-free mentorship. Other popular incubators, including NVIDIA, Microsoft, Deloitte, and more, support startups and contribute to the industry’s growth.
Blockchain has the most potential, and the support for innovative startups focusing on blockchain technology in India is pouring in. It has been included in the Digital India initiative under IndiaChain, which is dedicated to creating an infrastructure for secure and transparent government transactions.
Maharashtra Block Sandbox aims to test blockchain solutions in diverse sectors.
Startup India, FAME II, and the Clean Energy Scheme are government initiatives to support green tech innovation through Indian startups.
Do you want to know more about the growth of tech innovation in the startup ecosystem? Startup events like the Global Startup Summit could be a good place to explore tech trends and policies to boost the use of emerging technologies in India. Get insights from industry experts and get answers to your queries by attending such startup events. Furthermore, if you want helpful information on the Indian startup ecosystem, stay tuned to the 21BY72 blogs!
Conclusion
The Indian startup ecosystem is the third most developed and thriving ecosystem globally. Technological innovation has been the pillar of this growth
in recent years. The supportive initiatives and policies have boosted the adoption of emerging technologies in India.
AI, blockchain, and green technology have been driving innovation across numerous sectors. The rise of these trends in Indian startups must be monitored continually by investors and entrepreneurs alike; keeping an eye on these trends assures a competitive advantage in an ever-changing global market.
FAQs
1. What are the AI trends in Indian startups?
AI trends in Indian startups are reshaping the healthcare, finance, a agriculture industries. Startups like Niramai use AI for early cancer detection,
while Qure.ai employs AI in advanced medical imaging. In fintech, companies like Razorpay use AI for fraud detection and personalized financial services. Agritech startups like CropIn leverage AI to analyze crop health and predict yields.
2. How are green tech startups contributing to India’s sustainable future?
Green tech startups are pivotal in India’s shift toward sustainability. Companies like Zunroof are democratizing solar energy, making it accessible for
households and businesses. Ather Energy and BluSmart are transforming the electric vehicle ecosystem and promoting eco-friendly transportation solutions. In waste management, startups like Recykal and Saahas Zero Waste enable circular economies by recycling and reducing waste effectively. These startups align with India’s goal to generate 50% of its energy from renewable sources by 2030, driving sustainable development and environmental conservation.
3. How do I explore the emerging technologies in India?
Exploring emerging technologies in India involves staying updated and engaging with innovation ecosystems. Attend industry events to connect with
industry leaders. Join accelerator programs to gain insights and mentorship. Platforms like NASSCOM and Indian Angel Network provide resources on advancements in AI, blockchain, AR/VR, and quantum computing. Engaging in forums, collaborating with tech startups, and following government initiatives also help understand and leverage emerging technologies.
4. Which sector has the most growth potential in 2025?
Sectors like artificial intelligence, green technology, and blockchain will grow exponentially in 2025. AI-powered healthcare and fintech startups are
transforming service delivery, while blockchain is redefining supply chain and finance industries. Green technology startups will drive sustainability in energy, waste management, and transportation as India prioritizes renewable energy sources. Additionally, industries like AR/VR in gaming retail and cybersecurity are gaining traction due to increasing digital adoption. The blend of technology and sustainability positions these sectors for significant growth.
