Bharat has emerged as the world’s third largest startup ecosystem with emerging innovation hubs across Tier 2 and
Tier 3 cities, which accounted for 40% of tech startups in the year 2023. Vision and leadership of Prime Minister Narendra Modi, favourable government policies, ample venture capital, increased internet penetration, digitisation and a growing talent pool are some of the factors that have led to the growth of the startup ecosystem in our country.
Startups have been at the forefront of innovation in the country while reinventing solutions to replace inefficient and outdated business models in practice. Startups are true innovators and are changing established paradigms of businesses, connecting consumers, serving newer markets through digital business models, leveraging power of ecosystems and giving a platform for our talented young men and women to excel at the global level.
Bharat has nearly 3,00,000 startups and 113 unicorns. The startups had generated 1.2 million jobs by 2023 and are pivotal in technological advancements, especially in rural and remote areas. Startups also contribute to workforce
empowerment by investing in ongoing education and professional upskilling. In the first quarter of the year 2024,
startups in Bharat have raised US$ 2.77 billion across 326 deals, with significant contributions from e-commerce,
fin tech and health tech sectors. These include 213 early stage deals totaling up to US$ 898 million and 74 growth stage deals amounting to US$ 1.87 billion. Bengaluru leads in funding and deals, highlighting regional growth within the ecosystem, while Tier 2 and Tier 3 cities emerge as innovation hubs.
DEEP TECH STARTUPS
As of April 2024, there are 4,800 deep tech startups in our country. Deep tech startup is a company that uses advanced scientific and technological breakthroughs to solve major problems and improve the human experience. Deep tech startups are also known as hard tech companies. For optimisation of operational costs, automation of internal processes and increasing organisational efficiency, startups are using deep tech. Deep tech funding in our country was US$ 500 million in 2023, and expected to increase.
In the digital world, startups in Bharat are proactively integrating new age technology to unlock their full potential. Embracing such transformational tools can revolutionise the way startups operate efficiently, drive growth and elevate customer experiences. Most startups are evaluating technologies across Artificial Intelligence, Machine Learning, Large Language Models (LLM), Generative AI, DeepTech, IoT and Blockchain to meet increasing customer requirements, improving customer experiences and bringing efficiency in operations.
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Artificial Intelligence (AI) is playing an important role in the evolution of startups in our country. For example, agri-tech startups are addressing supply chain gaps through better farm-to-market linkages. Fintech innovators are changing the paradigm of lending through data and artificial intelligence and continue to strengthen their portfolio in an evolving regulatory environment. Edtech startups are pivoting business models in a post-COVID world to deliver flexible learning models. Consumer-tech companies continue to elevate customer engagement, delighting connected customers of today with better service delivery models. Healthtech companies will build on data and digital infrastructure to deliver state-of-art medical facilities across the country.
AI-BASED STARTUPS IN BHARAT
Precision Agriculture
Artificial Intelligence-powered drones and sensors help in monitoring crop health, soil moisture levels and pest infestations with precision. This data enables farmers to make informed decisions regarding irrigation, fertiliser
spraying and pest control. It helps farmers in optimising the use of critical resources like water, electricity, etc., and
increasing yields.
Crop Monitoring and Management
Artificial Intelligence based algorithms analyse satellite imagery and sensor data to provide real time insights into crop
growth patterns, enabling farmers to detect issues early and take corrective actions promptly. This leads to better crop management and higher productivity.
Predictive Analytics
Machine learning models analyse historical data, weather patterns and market trends to predict crop yields, disease outbreaks and market prices. This helps farmers in making strategic decisions related to planting, harvesting and marketing their produce.
Smart Farming Solutions
IoT devices and Artificial Intelligence enabled farm management platforms automate tasks such as irrigation, spraying of fertilisers and pest control, reducing labour costs and human error. These solutions also provide real time insights and recommendations to farmers, enabling them to optimise farm operations efficiently.
Chatbots and Virtual Assistants
Artificial Intelligence powered chatbots and virtual assistants provide instant customer support, answer queries and assist with account management, thereby reducing the need for human intervention and improving operational efficiency.
Predictive Analytics
Machine Learning models analyse historical financial data and market trends to predict customer behaviour, market dynamics and investment opportunities. This enables fintech startups to make data driven decisions and develop innovative products and services that meet the increasing needs of their customers.
Credit Scoring and Risk Assessment
Artificial Intelligence based algorithms analyse vast amounts of alternative data, including social media activity, utility bill payments and smartphone usage patterns to assess creditworthiness. This enables fintech startups to offer loans to individuals and businesses that may have been overlooked by traditional banks due to a lack of credit history.
Fraud Detection and Prevention
Artificial Intelligence powered fraud detection systems analyse transaction data in real time to identify suspicious patterns and prevent fraudulent activities such as identity theft, account takeover and payment fraud. This enhances security and trust in digital financial transactions.
Personalised Recommendations
Artificial Intelligence algorithms analyse user preference, browsing history and purchase behaviour to offer personalised product recommendations, thereby enhancing the shopping experience and increasing customer engagement for e-commerce and retail startups.
Predictive Customer Analytics
Machine Learning models analyse customer data to predict future behaviour, identify high value customers and segment the target audience for personalised marketing campaigns.
Virtual Try-on and Augmented Reality
Artificial Intelligence powered virtual try-on and augmented reality (AR) solutions enable consumers to visualise how products will look or fit before making a purchase, particularly in fashion, cosmetics and home décor sectors.
Customer Engagement
Artificial Intelligence powered chatbots and virtual assistants provide instant support and guidance to customers, improving engagement and satisfaction. Companies offer round-the-clock assistance, answer queries and resolve issues promptly, enhancing the overall customer experience.
Medical Diagnosis
Artificial Intelligence powered algorithms can analyse medical images, such as X-rays, MRIs and CT scans, with high precision. Startups are developing Artificial Intelligence based diagnostic tools that assist healthcare professionals in detecting diseases and abnormalities more accurately and efficiently, leading to early detection and better patient outcomes.
Predictive Analytics in Healthcare
Artificial Intelligence based algorithms analyse patient data to predict disease progression, identify at-risk individuals and personalise treatment plans. Health tech startups are using predictive analytics to improve preventive care, optimise resource allocation and reduce healthcare costs.
Telemedicine and Virtual Consultations
Artificial Intelligence powered chatbots and virtual assistants facilitate remote consultations, triage patients and provide medical advice based on symptoms. Health tech startups are developing telemedicine platforms that connect
patients with healthcare providers, offering convenient access to healthcare services, especially in regions of our country, which have very poor healthcare facilities.
Personalised Medicine
Artificial Intelligence based algorithms analyse genomic data and patient profiles to personalise treatment plans and medication dosages. Health tech startups are developing precision medicine solutions that consider individual variations in genetics, lifestyle and environment factors, leading to more effective and targeted therapies.
Ride Hailing and Shared Mobility
Artificial Intelligence is used for ride hailing platforms, optimise route planning, matching drivers with passengers
and predicting demand. Startups leverage Artificial Intelligence to enhance user experiences, minimise wait times
and optimise pricing for both passengers and drivers.
Last-mile Delivery for Retail Industry
Artificial Intelligence plays a crucial role in optimising last mile delivery logistics for ecommerce and logistic companies. Mobility startups are developing Artificial Intelligence driven delivery route optimisation algorithms, drone delivery solutions and autonomous delivery robots to streamline last mile operations and reduce delivery time.
Predictive Maintenance for Vehicles
Artificial Intelligence powered predictive maintenance systems analyse vehicle data such as engine performance and sensor readings, to identify potential maintenance issues before they occur. Mobility startups are deploying artificial
intelligence driven predictive maintenance solutions to minimise downtime, optimise fleet performance and reduce maintenance costs for vehicles in India.
Personalised Learning for Students
Artificial Intelligence enables personalised learning experiences by analysing students’ learning patterns, strengths
and weaknesses. This allows edtech platforms to provide customised content, adaptive learning paths and targeted
exercises, ensuring each student can learn at their own pace and according to their individual needs.
Language Processing and Translation
Natural Language Processing (NLP) enables language translation and voice recognition technologies, which are
particularly beneficial in a linguistically diverse country like India. These technologies make educational content accessible to students in different regional languages and improve communication between teachers and students.
Intelligent Tutoring Systems (ITS) for Students with Special Needs
Artificial Intelligence powered intelligent tutoring systems simulate one-on-one tutoring by providing real time feedback and assistance. These systems can help students understand complex concepts, offer hints and correct mistakes, making learning more interactive and engaging.
Data Analytics
Companies leverage big data and analytics to gain insights into student behaviour, learning outcomes and course
efficacy. This data driven approach helps in continuously improving the educational content and delivery methods.
REGULATORY SUPPORT FOR ARTIFICIAL INTELLIGENCE STARTUPS IN BHARAT
NITI Aayog introduced the National Strategy for Artificial Intelligence in 2018, outlining guidelines for AI research
and development across various sectors, including healthcare, agriculture, education, “smart” cities, infrastructure,
and smart mobility. Later in 2021, NITI Aayog published Part 1 – Principles for Responsible AI and Part 2 –Operationalizing Principles.
In 2023, the government enacted the Digital Personal Data Protection Act which can be utilised to address privacy
concerns related to AI platforms. The same year, MeitY outlined seven pillars for strategic AI development including
Centers of Excellence, Dataset platform and future skill initiatives.
Prime Minister Narendra Modi’s recent visit to the USA has led to the signing of a historic agreement related to US-India AI collaboration through idea exchange and development of global products and services in crucial sectors
like energy, health, and agriculture.
*The writer has 37 years’ experience in the fields of global AI and Cyber Security. He is a science and technology writer with more than 4000 published articles to his credit. He can be reached at upuranik@gmail.com.
