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India’s artificial intelligence startup ecosystem has expanded sharply over the past year, with the number of Generative AI (GenAI) startups more than tripling, according to the Economic Survey 2025–26.The survey found that the number of active GenAI startups rose from about 240 in the first half of calendar year 2024 to over 890 in the first half of calendar year 2025. This rapid rise has made GenAI one of the fastest-growing segments within India’s technology startup ecosystem.

Over the past decade, the Startup India initiative has transformed entrepreneurship from a niche urban phenomenon into a nationwide movement, positioning startups as a central pillar of India’s growth strategy. What began as a bold policy announcement has evolved into one of the world’s largest and most inclusive startup ecosystems, aligned closely with Prime Minister Narendra Modi’s vision of “Viksit Bharat 2047-a developed, innovative and self-confident India.

B Capital’s India team remains active and will do more deals in the aritificial intelligence (AI) and AI services space this year, Raj Ganguly, co-founder and co-CEO of B Capital told Moneycontrol in an interview at the World Economic Forum in Davos on January 20.