- Published on August 17, 2025
- In AI Startups
Why Indian AI Startups Achieve Recognition But Struggle to Scale-up
Nation’s deeptech ambitions seek a synergy between government and private sector initiatives to cross this threshold.
- By Smruthi Nadig
India’s AI startup ecosystem is thriving with ambition, but the path from recognition to true scale is strewn with hurdles. Being recognised by a government body may serve as a launch pad, yet few ventures transition efficiently to raising institutional funding, maturing products, and driving real revenue.
To answer why successful AI scale-ups remain uncommon in India requires one to assess the influence of government initiatives and analyse the obstacles hindering the nation’s deeptech ambitions.
Recognition by the Indian Department for Promotion of Industry and Internal Trade (DPIIT) serves as a stamp of approval for AI startups. But, what comes next?
“Many founders report that after initial recognition, startups “develop well-structured pilot projects, solutions t
📣 Want to advertise in AIM? Book here
Smruthi Nadig
Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.
Related Posts
How Neysa Stands Out in the IndiaAI GPU Race
Unlike other providers focused on GPU allocation, Neysa claims to deliver an end-to-end AI cloud platform.
Two Indian Engineers on a Mission to Automate Home Cooking for the World
In a live demonstration for AIM, Posha prepared paneer tikka masala in approximately 25 minutes
BharatGen and the Pursuit of Sovereign, Scalable AI for India
“Knowledge-driven components are important because we don’t want everything to be just algorithmic innovation.”
How Pradhi AI Embeds Emotional Intelligence in Voice AI
As businesses recognise the potential of voice-driven tech, Pradhi AI is laying the foundation for an empathetic, responsive AI ecosystem.
Mangaluru Looks to Build Its Own Tech Identity, Not Replicate Bangalore
“The coastal city could showcase tangible results by applying deep tech to areas it already dominates”
Google’s Gemini Nano Banana and the Cost of Convenience
The company’s new AI image and photo editor deepens concerns over data use and consent gaps, experts warn.
BharatGen’s ‘Recipe’ for Building a Trillion Parameters Indic Model
The consortium insists sovereignty doesn’t mean shutting the door on global players.
Storytelling is in the Creator’s Control with GenAI
“Democracy would not have been possible without storytelling being distributed.”
Download the easiest way to
stay informed
stay informed
