From 2023 to 2025, India's AI ecosystem experienced sustained growth, characterised by a reinforcing cycle where research output and investment increasingly aligned across the country, with the Indian landscape demonstrating a developing synergy between academic centres and financial backing.
Research activity remained widespread in India, with a high volume of papers and findings emerging from strong research hubs in the north, south and west of the country. Key research organisations such as SRM Institute of Science and Technology, Saveentha University, Chitkara University, Vellore Institute of Technology University and Koneru Lakshmaiah Education Foundation played an important role. The top five cities by research output in 2025 were:
This distributed innovation footprint demonstrates that high-level AI research is not confined to one region, but instead is supported by a variety of centres of academic excellence across the country.
The funding patterns of 2025 mirrored this research density, with the most significant increases in capital allocation occurring in regions with high concentrations of innovation. The companies that raised the most funding were Krutrim, Darwinbox, Spotdraft, Finbox and Infinite Uptime, with the top investment hubs being:
Although Bengaluru remains a key investment destination, the presence of cities such as Hyderabad and Hisar among the top funding destinations indicates that the AI landscape is expanding beyond traditional technology hubs.
The Indian ecosystem demonstrates a clear link between innovation and capital flows. While some regions lead in research volume and others in attracting capital, the gap between where knowledge is generated and where it is financed is narrowing. This suggests that the ecosystem is becoming increasingly self-sustaining, with research excellence acting as a reliable guide for future capital allocation.