There is an increased need for greater domestic and foreign investment in higher education, research and AI infrastructure, says Kris Gopalakrishnan
| Photo Credit: tadamichiGetty Images
Industry experts speaking at a Confederation of Indian Industry (CII) event said India should ride the AI wave to emerge as a product nation. While the country has excelled in engineering and software services, it has yet to fully master the entire product value chain from design and development to engineering and manufacturing, said Kamal Bali, chairman of CII Innoverge 2026, the trade body’s flagship national innovation summit scheduled to be held in Bengaluru on July 22 and 23.
Speaking at the curtain-raiser event on Tuesday, he said the focus should now be on transforming India into a globally relevant product powerhouse, with AI embedded across every function and supported by the three pillars of innovation, trust and technology. India’s world-class research institutions, supportive public policy framework, robust domestic market, skilled workforce and scalable manufacturing capabilities provide the ideal foundation for this transformation, Mr. Bali added.
Explaining how India can ride the AI wave to emerge as a product nation, Kris Gopalakrishnan, past president of CII and co-founder of Infosys, said the country should leverage the AI revolution to make the transition. He observed that AI’s entry into job markets was creating disruptions, but added that every technological shift also opened up new opportunities.
When asked about India’s biggest bottleneck in becoming an AI-led product nation, Mr. Gopalakrishnan identified investment as the primary challenge. While India has grown from a handful of startups to over two lakh startups, including more than 4,500 deep-tech firms, funding remains limited, he said. Indian startups typically receive ₹1 crore to ₹2 crore in funding (around $100,000 to $200,000), whereas comparable startups in the United States often secure nearly $20 million, he noted, highlighting the need for greater domestic and foreign investment in higher education, research and AI infrastructure.
Noting that India’s exports continue to be dominated by IT services, Mr. Gopalakrishnan stressed the need to develop indigenous technologies backed by strong research and development and intellectual property. He also underlined the importance of building a robust R&D and innovation ecosystem involving industry, academia, startups and entrepreneurs.
Also speaking at the event, Rabindra Srikantan, past chairman of CII, highlighted India’s strong digital foundation, expanding manufacturing ecosystem and supportive policy environment, saying the country was well-positioned to scale AI innovation and develop practical, sustainable solutions. Sam Cherian, vice-chairman of the CII Karnataka State Council and founder-chairman of the Schevaran Group, said innovation was no longer confined to research laboratories or technology companies, but had become central to sectors ranging from manufacturing and mobility to healthcare, energy and the creative economy. As India advances towards becoming an AI-led product nation, it is equally important for MSMEs to embrace innovation, he added.
According to the trade body, the two-day Innoverge 2026, themed “Transforming India into an AI-Led Product Nation: Innovation, Trust and Technology”, aims to accelerate India’s transition from being a technology adopter and IT services powerhouse to a globally recognised product nation driven by innovation, research and artificial intelligence.
The conclave will feature discussions on automotive and next-generation mobility, including software-defined vehicles, new energy pathways and electronic control unit (ECU) technologies. It will also focus on biotechnology, life sciences and pharmaceuticals, with an emphasis on moving from volume-driven to value-driven innovation. Discussions will additionally cover aerospace, space and defence, which have been identified as sunrise sectors with significant export potential.
Published – July 14, 2026 07:58 pm IST
