India's future as a leader in artificial intelligence hinges on a significant increase in research and development (R&D) investments and a commitment to continuous innovation, according to Kris Gopalakrishnan, co-founder of Infosys and chairman of Axilor Ventures. Speaking at the Bengaluru Tech Summit 2025, Gopalakrishnan emphasized that India is at a crucial juncture in its AI journey, comparable to the early days of computing in the 1980s. He believes that AI will revolutionize industries for the next 30 to 50 years, potentially even faster.
Gopalakrishnan urged boards of large industries to critically evaluate their R&D budgets and strive to exceed global averages. He advocated for industries to allocate at least half of their R&D budgets to external entities like startups and research firms. This call for increased R&D spending aligns with his long-held belief that India needs to triple its R&D investment to 3% of its GDP, with the private sector contributing 1.5%.
To foster a product-oriented economy, Gopalakrishnan recommended that companies measure the revenue contribution of products introduced within the last three years, setting ambitious targets for innovation and performance. He also stressed the importance of external collaborations to tap into the broader, more innovative global landscape.
Echoing Gopalakrishnan's sentiments, other industry experts at the Bengaluru Tech Summit emphasized the need for India to shift from a services-led model to product-led innovation, focusing on creating products and intellectual property rather than solely concentrating on coding. This transition requires IT professionals to collaborate across the value chain, research ecosystem, startup ecosystem, investors, mentors, and founders.
Priyank Kharge, the state's minister of electronics, information technology and biotechnology and rural development and Panchayat Raj, stated the government's commitment to encourage innovation, even if it conflicts with existing regulations, by providing regulatory sandboxes. He also expressed his aim to see the state spend 4% of its budget on research across sectors.
Several initiatives are underway to bolster India's AI capabilities. The government is keen to transform the country into a semiconductor manufacturing hub and is placing greater emphasis on AI and deep tech. Karnataka is establishing Centres of Excellence across the state, including regions outside Bengaluru, to promote collaboration between academia and industry. One such center in the Hubballi–Dharwad–Belagavi (HDB) region will receive an investment of Rs 18 crore over five years, focusing on quantum computing, AI, and advanced computational research.
Infosys co-founder S 'Kris' Gopalakrishnan has also contributed significantly to brain research, donating ₹225 crores to develop a Centre for Brain Research at the Indian Institute of Science in Bangalore. He has further contributed ₹60 crores to establish distinguished visiting chairs in Neurocomputing and Data Science at IISc Bengaluru and IIT Madras.
India's large and young talent pool, coupled with a proven business model, positions it for growth in the IT sector, which is projected to reach $350 billion by 2030. To fully capitalize on this potential, India must prioritize R&D investments, encourage collaboration, and foster a culture of product-led innovation to achieve technology and strategic autonomy across the AI stack.
