Even as the calendar year nears its conclusion, technological advancements continue to surge, with 2025 being no exception. Throughout this year, artificial intelligence (AI) has emerged as a focal point in tech discussions, evolving into more sophisticated forms and integrating seamlessly with both new and established operational processes. However, the technological landscape encompasses far more than just AI. A closer examination reveals a variety of sectors at play.
### From Generative to Agentic
Generative AI has significantly altered our online interactions, with advancements this year enhancing its capabilities. Additionally, the emergence of Agentic AI—highly intelligent iterations of existing chatbots—has allowed for the execution of basic tasks with little to no human intervention. Businesses across various sectors have increasingly adopted AI agents to streamline workflows, a trend expected to persist into the next year. On a policy front, India has initiated discussions around AI, aiming to foster inclusivity and enhance sovereignty over the technology.
“If the past year demonstrated anything to leaders, it’s that AI itself was not the issue—rather, it was our expectations that fell short. The previous year was marked by a flurry of copilots, dashboards, and demonstrations, with nearly every enterprise exploring AI in some capacity. Yet, few can confidently assert that their operations have improved as a result. Costs remained high, customer experiences faltered, and teams became more overwhelmed by balancing experimentation with delivery,” stated Shammik Gupta, Founder & CEO of 3Cubed. “The gap we encountered was not a technological one; it was in execution and, more fundamentally, a matter of belief. Three key truths stand out: First, visibility is more critical than intelligence. AI cannot resolve issues that leaders cannot identify. Many organizations still lack a comprehensive understanding of their workflows—where bottlenecks occur, where rework is necessary, and where timing disrupts otherwise sound decisions.”
“Second, data exhaust does not equate to operational truth. Dashboards may indicate what has occurred, and logs may show where, but they do not clarify why. Without an understanding of causality, AI merely accelerates noise rather than providing meaningful insights. Third, automation without context can lead to fragility. Numerous organizations automated processes only to later introduce additional reviews, exceptions, and controls. Consequently, costs resurfaced, risks increased, and trust diminished. The takeaway was not that AI requires better models; rather, enterprises must gain a clearer understanding of how their systems operate, move, and make decisions,” he continued.
“As we approach 2026, we anticipate a major transformation in AI’s application—it will begin to feel less like a tool and more like a collaborative partner. This evolution promises to redefine engineering and the methodologies organizations employ. Human-machine interactions are expected to be significantly enhanced through the use of humanoids and intelligent agents, while smaller, faster, and cost-efficient models will facilitate scalability based on return on investment rather than sheer computational power.”
“The evolution of Generative AI infrastructure is pushing organizations that are AI-native from mere proofs of concept to actual implementation and deployment. AI is becoming increasingly integrated into the software development life cycle, enhancing both innovation and productivity. Nonetheless, the true measure of success hinges on trust. Organizations must guarantee dependable integration, transparent agents, built-in safety protocols, robust cybersecurity measures, and clear distinctions between machine-driven decisions and those requiring human verification. As machines continue to learn at an accelerated pace, the growing use of digital twins will increasingly shape real-world outcomes,” remarked Pankaj Vyas, CEO and Managing Director at Siemens.
“As organizations lead this technological transformation, they bear the responsibility of fostering a learning environment that is confident, collaborative, and continuous. The real breakthrough lies not in ubiquitous intelligence but in trustworthy intelligence that empowers humans to be more precise, creative, and capable than ever before.”
### Cryptocurrency & Web3
Despite the government’s hesitance to formally acknowledge traditional cryptocurrencies, there have been considerable initiatives to explore alternatives. For example, the Central Bank Digital Currency (CBDC) is advancing from retail applications to business-to-business (B2B) ‘Deposit Tokenization,’ aimed at facilitating seamless, instantaneous, and programmable cross-border payments for smaller firms. B2B platforms are progressively adopting blockchain technology to tokenize invoices, supply chain assets, and more. Regarding safety and governance, compliance with the Financial Intelligence Unit (FIU) for all Virtual Digital Asset (VDA) providers is viewed as a significant effort to regulate the sector.
“As we enter 2026, the cryptocurrency landscape is shifting towards strategic consolidation. The sharp fluctuations observed in late 2025 highlighted the market’s vulnerability to global economic changes. Looking ahead, regulatory clarity will serve as a crucial driver, with proposals such as the SEC’s ‘innovation exemption’ likely influencing how digital asset companies operate and expand. Additionally, shifts in monetary policy across major economies will impact liquidity and risk tolerance. Although market sentiment has improved since the extreme anxiety of November, traders remain cautious, indicated by elevated futures open interest reflecting a shorter-term tactical approach. Nonetheless, increased institutional engagement and clearer compliance frameworks foster a positive long-term outlook, making 2026 a year poised to reward disciplined investment,” stated Vikas Gupta, Country Manager for India at Bybit.
Nischal Shetty, Founder of WazirX, commented, “Reflecting on 2025, the cryptocurrency sector presents a mixed yet optimistic narrative. On one hand, the industry experienced notable advancements: growth in decentralized finance (DeFi) projects, an expansion of stablecoins, new CBDC infrastructure trials, and a surge in developer activity across Asia-Pacific and globally, with millions dedicated to blockchain development. Conversely, after early-year enthusiasm among retail investors, the market correction in October served as a reminder of the fragility of sentiment, highlighting that hype without tangible results can adversely affect the industry. However, institutional movements and regulatory signals provided meaningful momentum, with Vanguard lifting its long-standing ban on crypto, allowing access to Bitcoin, Ethereum, XRP, and Solana ETFs, thus spurring mainstream adoption. The CFTC’s endorsement of spot crypto ETFs further reinforced this trend, reflecting a steady progression towards granting traditional investors regulated crypto exposure. Firms like BlackRock have also intensified their investment strategies in digital assets.”
Looking forward to 2026, there is potential for optimism. In India, the groundwork for the CBDC initiative may soon be established. The Reserve Bank of India (RBI) has announced a hackathon in October aimed at nurturing technological talent in emerging fields, encouraging more individuals to view these new technologies as promising career opportunities. A clearer regulatory framework for VDAs, possibly paired with favorable tax policies and support for stablecoin initiatives in conjunction with CBDC strategies, could unlock authentic blockchain applications from Indian innovators, propelling on-chain growth.
Although 2025 did not mark a definitive breakout year, it was undeniably transformational. Infrastructure developed, institutional involvement broadened, and global policy discussions intensified. In 2026, the appetite for regulated digital asset products is expected to rise globally, driving capital inflows and enhancing market stability. Concurrently, national policies will play a crucial role in shaping investor sentiment within individual countries.
### Semiconductors
Following its success in achieving self-sufficiency in the smartphone sector, India is aiming for similar accomplishments in the semiconductor industry. This focus is increasingly vital due to growing domestic demand and emerging technologies such as AI. Semiconductors are crucial to India’s ambitions of becoming a manufacturing and innovation hub rather than merely a large consumer market. Significant strides have been made, ranging from indigenous chip designs to programs that incentivize domestic production.
Recently, Union Minister Ashwini Vaishnaw announced that India’s chip production capabilities are projected to rival those of the U.S., China, and other leading manufacturers by 2032. The India Semiconductor Mission, backed by a $10 billion investment, aims to enhance local manufacturing, design, and talent development. Electronics and IT Secretary S. Krishnan confirmed that the central government has committed nearly INR 629 billion (approximately $7.17 billion)—about 97% of the INR 650 billion (around $7.41 billion) budgeted for semiconductor production incentives under the India Semiconductor Mission, leaving only limited funds available for smaller projects. The allocated budget includes INR 100 billion ($1.14 billion) for upgrading the Semiconductor Laboratory in Mohali, Punjab, and INR 10 billion ($114 million) for a design-linked incentive scheme.
### B2B SaaS
This year has seen B2B SaaS evolve to become more vertical and hyper-localized, adapting to the challenges posed by AI. Efforts are underway to create frameworks that understand local contexts, especially with the implementation of the Digital Personal Data Protection (DPDP) Act prompting SaaS companies to rethink their architecture by prioritizing design and integrating B2B privacy technologies.
“While 2025 was characterized by extensive AI experimentation, much of this value remained confined to isolated use cases instead of being fully integrated into enterprise decision-making processes. As we look ahead to 2026, Indian organizations need to move past fragmented pilot projects and embed AI into the very fabric of their operational workflows. The traditional dichotomy between rigid centralized control and unrestricted self-service is no longer viable,” explained Maurizio Garavello, SVP for the APAC Region at Qlik.
“To thrive in this new phase, organizations must adopt a model of governed flexibility, ensuring that data integrity, security, and accountability are paramount, while also empowering teams closest to the business to innovate swiftly. At Qlik, we believe that for AI to truly scale within India’s rapidly growing economy, innovation must be founded on reliable data and a culture of collective accountability,” he added.
### India’s GCC Turning Point
This year has marked a significant strengthening of India’s Global Capability Centers (GCC) as the world shifts towards newer technologies, including AI. As previously mentioned, the transition to agentic AI has revitalized India’s position as a talent hub for tech companies seeking resources and infrastructure. Moreover, GCCs in India are becoming increasingly decentralized, with cities like Coimbatore, Kochi, and Ahmedabad emerging as attractive locations for smaller GCCs.
“2025 has been a pivotal year for India’s GCC narrative. We have moved well beyond the traditional ‘back office’ perspective. The most compelling developments we observe now involve product, data, and AI initiatives taking place within Indian pods that are accountable for tangible outcomes, rather than just volume. Concurrently, the external environment has shifted, with tighter U.S. visa regulations, such as changes to the H-1B program and the HIRE Act, creating uncertainty for companies and Indian professionals abroad. Many firms are now considering India as a primary development location rather than a secondary option, resulting in increased inbound interest. This past year has focused on establishing fundamental operations, including managerial depth, security standards, and streamlined operational processes across hybrid teams. GCCs that have prioritized these foundational elements are already handling more strategic initiatives,” stated Piyush Kedia, CEO and Founder of Incommon.
“Looking ahead to 2026, I anticipate three distinct trends. First, an uptick in mid-market and private equity-backed companies establishing ‘India-first’ teams dedicated to AI, data, and platform work. Second, the maturation of hub-and-spoke models, with Tier-2 cities becoming integral to talent strategies rather than merely serving as cost-effective alternatives. Third, boards will increasingly evaluate GCCs based on their business impact—emphasizing revenue, reliability, and innovation—rather than headcount alone. At InCommon, we envision that the next phase will belong to organizations that treat India as an extension of their headquarters, maintaining the same standards for leadership, security, and execution. If India can effectively combine capability with predictability, GCC 2.0 will flourish here,” Kedia concluded.
