5 Big Ideas that will shape India’s tech and startup space in 2025

Gen AI and GCCs are the talk of India’s techsphere, startup funding is on the rise, and Tier 2 and beyond cities are proving their mettle as tech powerhouses. 

At the end of a year also shaped by the IT slowdown and the fast-paced adoption of emerging technologies like quantum computing and digital twins (and of course, AI), the question arises: What’s on the horizon for India’s tech and startup space in 2025? 

From hyperlocal AI solutions to entrepreneurship education becoming a norm in India’s classrooms — here are the five Big Ideas that will reshape how India’s tech sector will innovate and how the startup ecosystem will evolve over the next year.

What prediction or trend do you think will have the biggest impact on the tech and startups space in 2025? Share your thoughts in the comments or by posting a video using #BigIdeas2025.

From Ola’s Krutrim to Google DeepMind's Morni — AI is already speaking the languages of India. NVIDIA has also announced plans to develop an India-specific AI chip for specific use cases in the country. So, what’s next?

“We do need AI for India, by India, in India,” says Rahul Kulkarni , Chief Technologist at governance consulting firm Samagra | Transforming Governance . This will happen by ensuring that everyone is able to, and isn’t afraid to, create different AI models, he says. 

A few problem statements Kulkarni thinks we need to tackle include, “How can you tweak an existing Llama model and make it more efficient for Hindi?” and “What is that chip that can optimise for Indic language text generation or Indic language text interpretation?”

However, thinking small could be the biggest game-changer, according to him. “Can we think of models that can run on the phone?” Models that can be compressed down to 100-200 MB and can run on phones will set off a wave of usage of AI that is unbounded by data plans or lack of or intermittent access to the internet, he adds.

The ecosystem seems ripe for the play. More than 17 indic and vertical AI models were launched in India between the first half of 2023 and the first half of 2024, and the country’s Gen AI startup base grew 3.6X to 240, shows nasscom data. 

What about the cultural impact? When you think of domestic, devotional, and spiritual tourism, and the heritage associated with it, people visit these places without being able to immerse in them deeply, says Prashant Sachan , founder and CEO of AppsForBharat . He envisions AI blazing the trail to bridge this gap.

“There will be AI agents that will become AI Panditjis or AI guides around culture for the masses. These tools will solve for a deeper connection to one's culture, heritage, and values — and we will see many solutions around that, including the ones that we ourselves are developing,” he adds. 

What’s one hyperlocal AI solution that is a must-have for India? Click here to share your take.

Sustainability isn’t just good for the planet — it will also be good for business, because VCs will bet big on startups who take it seriously.

Direct-to-consumer startups will be at the forefront of this trend — more than 30% of Gen Z and millennials have ended or reduced their relationship with an organisation because their products and services affect the environment, according to a Deloitte report. 

Organisations that are able to demonstrate a larger impact and show how they contribute to reducing the firm’s or the country's net emissions — especially if there’s new technology at play — will gain significantly in valuation, says Arundhati Kumar , founder of sustainable fashion and lifestyle brand BEEJ . 

“And rightly so, because all of us right now are looking for a magic bullet that will steer us away from a three-degree pathway to a 1.5-degree pathway,” she adds. Kumar is referring to a United Nations analysis which states that countries’ current emissions pledges to limit climate change would still put the world on track to warm by nearly 3° Celsius this century. The result? “The world could pass several catastrophic points of no return,” according to the 2023 report.

“Building with impact in mind attracts both investors and loyal customers,” writes Nilanjay Ghura , Venture Partner at Startup Wise Guys , on LinkedIn. He breaks down the three reasons why VCs would bet on impact: 1) Consumers prioritising sustainable products, 2) Governments incentivising green solutions, and 3) Long-term returns, with impact-driven businesses showing strong financial outcomes.

ESG and climate-focused corporate mandates are also becoming critical to a company’s successful IPO and overall performance, shows an EY report.

However, it’s not just about “packaging” a startup as sustainable. “As the science becomes clearer, as the pathway starts clearing out in people's heads, being able to validate claims is going to become incredibly important, and I think a key determinant of what a business's valuation is going to be in the times to come,” adds Kumar.

Will sustainability become a key factor for VCs when evaluating startups? Click here to share your take.

The phrase “a penny for your thoughts?” will soon take on a whole new meaning.

With controlling devices with your mind evolving from a wishful concept in sci-fi movies to a market set to touch $6.2 billion by 2030, privacy is set for an upgrade. 

“Cognitive privacy is the next frontier. It's not just about safeguarding what we do online, but also ensuring that our innermost thoughts, mental states, and neural patterns aren't exploited,” says Amit Jaju , Partner - India and Head of Data and Technology at Ankura India . With the deeply personal nature of thoughts, their protection needs to be at least as robust (if not more) compared to today's data privacy frameworks, he adds.

With brain-computer interfaces (BCI) making their way across sectors —from medicine to gaming — application security must evolve to meet this moment, says Pratik Shah , Managing Director- India and SAARC at F5 .

“When neural patterns, behavioural responses, or mental states are combined with existing datasets—such as location, purchasing habits, or communication histories—the result isn’t just a security risk; it’s a complete dismantling of personal privacy,” he says. 

The risks are no longer hypothetical. A BCI application could face cyberattacks like intercepting signals transmitted from the brain, hijacking a person’s mind to compel them to act contrary to their will, or even manipulating machine-learning components to produce biased results, shows a WEF report. 

What does an ideal way forward look like? An integration of digital and cognitive protections, including tools like cognitive firewalls, and virtual shields that selectively block unauthorised access to neural data while allowing us to interact with technology safely, says Jaju. 

“Cognitive privacy isn't just a technical issue, it's also an ethical one,” says Jaju. He adds that we need clear global standards that define boundaries for cognitive data collection and use — ones that prioritise consent, transparency, and accountability. The United States’ Colorado and California have already introduced laws to protect brain activity. Will India follow in their footsteps?

What cognitive privacy measures do you think can help protect our thoughts? Click here to share your take.

Almost 32% of Indian college students are actively trying to start their own venture, according to the GUESSS India 2023 Report. India also shows the highest entrepreneurial intent globally, according to the report.

Is it time to put “Starting Up 101” as a subject on the school timetable?

“I believe every young person needs to be exposed to entrepreneurship as part of their learning, just like other foundational skills like literacy and numeracy,” says Ravi Venkatesan , Founder of GAME - Global Alliance for Mass Entrepreneurship . “Stable jobs leading to stable careers” is an artefact of the last century, especially with the rapid onset of AI, he adds. According to him, more and more of us will have to turn to self-employment, gig work, and entrepreneurship in the coming years. 

Today’s landscape, shaped by geopolitical shifts, improved accessibility, financial inclusion, large-scale subsistence entrepreneurship, and emerging technologies, has the potential to drive entrepreneurship, says Professor Deepa Mani , Deputy Dean- Academic Programs and Digital Learning at the Indian School of Business . This could “alter the distribution of economic activity in the country,” she adds.

She adds that the blocker in this path to starting up isn’t financial capital or physical infrastructure — but skilled human capital that can tap into these opportunities to create economic and societal value. In this context, early entrepreneurship education becomes invaluable, she says. 

Almost 49% of university students surveyed in the GUESSS India 2023 Report have participated in an entrepreneurship course. The payoff of kicking this off at the school level? Students develop non-cognitive skills like a growth mindset, which enables learning from failure, lifelong learning, and analytical thinking — must-haves in the age of AI, according to Mani. 

 ”In the 21st century, an entrepreneurial mindset and entrepreneurial skills are essential life skills,” adds Venkatesan.

Do you think entrepreneurship should be included in the school syllabus? What should it include? Click here to share your take.

There’s a new agent in town, and it will soon help you organise your life — no hand-holding needed! 

“Agentic AI is like hiring an ultra-competent executive assistant who not only understands your goals, but also anticipates your needs, analyses complex situations, and acts autonomously to achieve outcomes,” says Omkar Pandharkame , Chief Evangelist and Strategy Officer at Supervity , a company operating in the AI ‘Agents-as-a-Service’ space.

Wait, how is that different from the AI we know and use? Unlike traditional AI, which often functions as a sophisticated calculator answering predefined queries, Agentic AI steps into the role of a strategist, explains Pandharkame. “It doesn’t wait for instructions—it observes, learns, and takes action to drive value,” he adds.

AI agents are expanding the potential applications of Gen AI, while Multiagent AI systems can help amplify the game-changing potential of this technology, according to a recent report by Deloitte. More than 50 companies have emerged since 2022 focusing on agents, agentic workflows, and agent infrastructure, according to CB Insights. 

While organisations can leverage AI agents to improve automation and quality, how will it make our day-to-day lives easier? “Old-school automation will book tickets for you as per the availability of the buses. Agentic AI can look at your calendar, your past bookings, the weather patterns, and decide — based on the cost or time — to book the tickets,” says Arun Prakash M , co-founder and CEO of GUVI.io. 

There’s also a business opportunity at play: “In the first 12 to 18 months, it will be more of an experimental thing, and then it will become common terminology — and people will start selling the agents to consumers,” adds Arun Prakash M. This means you could buy an agent for posting on social media, or for replying to an email, he says.

What would you buy an AI agent for? Click here to share your take.

Reported by: Isha Chitnis

Community Manager: Neha Upalekar @rakshit

Graphics: Kyle Ranson-Walsh