The number of startups working with Artificial Intelligence in India has tripled. The Economic Survey shows that there were 890 such companies in India in the first half of 2025. There has also been a significant increase in investment received by these companies.

Karnataka is the main hub of such companies. Maharashtra and Delhi are close behind. The acceptance of AI companies has also led to an increase in investment in the Deeptech sector.

Despite the growth, some challenges still exist in this sector. The control of AI technology is limited to large companies and export restrictions on advanced chips are a setback for India. In addition, the lack of data centers is also hindering the development of this sector.