India’s venture capital (VC) market is recovering, with funding rising to $11.2 billion in 2024 from a decline in 2023. However, the AI ecosystem faces significant challenges, with only one AI startup, Krutrim AI, achieving unicorn status among India’s 117 unicorns. The government is pushing for foundational AI models, receiving 67 proposals for large language models. Despite a decline in funding for AI startups to $560 million in 2024, the VC landscape remains optimistic, with $20 billion available for investment. India’s strong AI talent pool ranks second globally for GitHub contributions, indicating growth potential in the sector.