India’s AI market is projected to reach $126 billion by 2030, but the sector faces significant challenges in capital, talent, and infrastructure, according to discussions at the Inc42 AI Summit 2026 in Bengaluru, inc42.com reported. Industry leaders highlighted the country’s current position as primarily a consumer of global technology rather than a developer of core AI infrastructure.
The summit featured insights from key figures such as Mohit Saxena of InMobi, who emphasized India’s lag behind the US and China due to limited access to capital and chips, and a lack of ecosystem patience. Rahul Chari of PhonePe noted that AI’s lower entry barriers have increased the value of distribution and data, predicting a shift in engineering roles toward system architecture and design. Companies like Rapido and fintech platform S45 showcased how AI is transforming operations, with Rapido generating two-thirds of its code through AI and S45 hiring humans only when AI cannot fulfill tasks.
This context underscores the evolving AI landscape in India, where faster execution and enhanced customer interaction are becoming priorities. Firms such as Zepto and ElevenLabs are leveraging AI to accelerate experimentation and improve user engagement. The summit highlighted both the opportunities and the structural gaps that need addressing for India to build a more robust AI ecosystem.
Looking ahead, the industry must focus on bridging the capital and talent gaps while fostering long-term infrastructure development. The insights from the summit suggest that startups and established companies will continue to integrate AI deeply into their workflows, with a growing emphasis on system-level thinking and innovation. Observers will watch how these shifts influence India’s position in the global AI market in the coming years.