India is cementing its position in the global generative artificial intelligence (GenAI) landscape, ranking sixth globally behind the United States, United Kingdom, Japan, Israel, and the European Union. A Nasscom report titled GenAI Tracker: Tech Industry Activity highlights India's growing significance, driven by increased funding and robust partnerships.

GenAI funding saw a dramatic resurgence in Q2 FY25, with $51 million raised across 20 rounds, a sixfold increase from Q1's $8 million. Year-on-year, funding has risen 3.4 times, up from $15 million in Q2 FY24. Key beneficiaries were startups Nurix AI, Dashtoon, and Mihup, which captured over 90 percent of Q2 funding. Early-stage investments dominated, comprising 77 percent of rounds.

Nasscom’s Senior Vice-President, Sangeeta Gupta, emphasized that future growth will hinge on strategic innovation and lessons from pilot projects. Industry players are transitioning from developing GenAI platforms to scaling proof-of-concept initiatives. Collaborations surged by 25 percent this quarter, focusing on product enhancement, global alliances, and government-led skilling programs. Companies like Accenture and Unilever are leveraging GenAI to boost productivity, while Genpact has joined forces with Volkswagen Financial Services.

The IT services sector is also reaping rewards, with Accenture and TCS reporting revenue pipelines of $3 billion and $1.5 billion, respectively, underscoring India’s expanding influence in the GenAI domain.