Nasscom's AI Focus Under New Chair

Nasscom's choice of Srikanth Velamakanni as its new Chairperson marks a key moment for India's technology industry. Velamakanni, co-founder and Group CEO of Fractal, brings extensive AI expertise and global market experience to lead the IT industry body. His main goal is to speed up service delivery transformation through AI, while also driving product innovation and the development of Agentic AI. This aims to make India a top global source for AI systems that work together and specialized AI products, moving beyond its traditional service strengths toward creating intellectual property in AI infrastructure and advanced engineering. This strategic change shows how the industry is centering its operations around artificial intelligence.

India's Rise in Global AI Rankings

This leadership change comes as India quickly climbs global AI competitiveness rankings. Stanford University's Global AI Vibrancy Tool places India third worldwide, behind only the United States and China. The Indian AI market is expected to grow significantly, potentially reaching over $131 billion by 2032 with an annual growth rate of about 42.2%. Global AI spending is also set to exceed $300 billion in 2026. India's strengths include its large number of skilled engineers, a growing startup scene, and strong talent attraction. Fractal Analytics, a leading AI company valued at $2.4 billion, highlights the strength of India's AI businesses. KPIT Technologies, led by Vice Chairperson Kishor Patil, also shows India's ability as a software integration partner in advanced fields like automotive.

Building Agentic AI and IP

Velamakanni's background at Fractal, a company known for its advanced data analysis and AI solutions for major clients, positions him well to promote cutting-edge AI projects. Fractal's success in creating AI-driven intelligence solutions and its commitment to research and development—spending 5% of revenue on it—reflects the industry's need for new technology designs. The focus on Agentic AI aligns with global trends where AI agents are increasingly used in business operations to automate tasks and aid complex decision-making. This focus on advanced technology and owning intellectual property marks an important shift from India's traditional focus on services.

Challenges Ahead for India's AI Ambitions

Despite India's strong AI goals and global standing, significant challenges remain in putting these plans into action. A key problem is the shortage of skilled workers, with estimates suggesting a need for one million AI professionals by 2026, a number the current talent pool may not meet. Data access, quality, and security are major concerns for Indian businesses, many of which struggle to combine data from separate systems. Infrastructure also needs substantial investment; platforms like AIRAWAT need expansion to handle AI's need for large amounts of data. Furthermore, concerns about local R&D and potential reliance on foreign technology create a hurdle. Meeting regulatory and compliance rules also presents complex integration challenges. The Indian IT sector itself faces risks from AI-driven automation, with some analysts predicting falling revenues in traditional services. While Indian businesses are rapidly adopting AI, their level of expert AI skills is lower than global averages.

Path Forward for India's AI Sector

The appointment of Velamakanni and Patil signals Nasscom's dedication to overcoming these challenges and capitalizing on AI's transformative power. The focus on 'Human + AI' teams and large-scale training programs aims to prepare the workforce for a changing job market. AI is expected to create more jobs than it replaces, but with a significant shift in required skills. The industry's direction points toward results-focused transformation, increased ROI, and moving from scattered experiments to scaling AI platforms for specific industries. Success will depend on closing current skill gaps and using India's growing AI talent to strengthen its position as a global AI leader and a reliable partner for transformation.