Even as the year draws to a close, the technology sector is witnessing remarkable advancements and innovations. This year has been particularly notable, with artificial intelligence (AI) taking center stage in discussions surrounding technology. AI has become increasingly sophisticated, with enhancements in its capabilities and a deeper integration into both new and existing workflows. However, the technological landscape encompasses more than just AI. Let’s explore various sectors in detail.
From Generative to Agentic
Generative AI has transformed our interactions with the internet. This year, the technology has not only improved significantly but has also expanded into what’s known as Agentic AI—advanced chatbots capable of executing basic tasks autonomously. These AI systems are designed to operate with minimal or no human oversight. In 2023, businesses across various sectors began adopting AI agents to streamline workflows, a movement expected to persist into the next year. On a policy front, India has initiated discussions on AI, aiming to make this technology more inclusive and sovereign. “If there’s one lesson learned from 2025, it’s that AI itself didn’t fail; our expectations did. Last year was filled with copilots, dashboards, and demonstrations. While many enterprises engaged with AI, few can genuinely claim improved operations as a result. Costs did not see sustainable reductions, customer experiences didn’t stabilize, and controls became more complex. Teams grew busier, caught between experimentation and execution. The issue was not the technology but rather the implementation and, fundamentally, belief. Three key insights emerge: First, visibility is more important than intelligence. AI cannot address issues that leaders are unaware of. Many organizations still lack an integrated perspective on work processes—where efforts accumulate, where rework occurs, and where timing adversely impacts decisions,” stated Shammik Gupta, Founder & CEO of 3Cubed. “Second, data exhaust does not equate to operational truth. Dashboards reveal past events; logs indicate their locations, but neither clarifies the reasons behind them. Without understanding causality, AI merely accelerates noise optimization. Third, automating without context leads to fragility. Many organizations automated processes only to introduce additional reviews, exceptions, and controls later. Costs resurfaced, risks escalated, and trust diminished. The takeaway was not that AI needs better models but that businesses require a stronger operational comprehension—a clearer understanding of how their systems function, evolve, and make decisions,” he added. “As we approach 2026, we will see a significant transformation in how AI is utilized – transitioning from a mere tool to a collaborative partner. This shift will redefine engineering practices and organizational development. Human-machine interactions are poised to be greatly enhanced through humanoids and intelligent agents. Additionally, the emergence of smaller, faster, and cost-efficient models will push intelligence to the edge, making scalability more about return on investment than sheer computational power.”
Cryptocurrency & Web3
Despite government hesitance to officially recognize traditional cryptocurrencies, significant strides are being made to explore alternatives. For instance, the Central Bank Digital Currency (CBDC) initiative is advancing from retail applications to B2B ‘Deposit Tokenization,’ aimed at facilitating seamless, instantaneous, and programmable cross-border transactions for smaller businesses. B2B platforms are progressively leveraging blockchain technology for tokenizing invoices, supply chain assets, and other applications. Regarding safety and governance, compliance with the Financial Intelligence Unit (FIU) for all Virtual Digital Asset (VDA) providers is widely viewed as a measure to enhance the integrity of the space. “As we head into 2026, the cryptocurrency sector is set to undergo a period of strategic consolidation. The extreme volatility witnessed in late 2025 highlighted the market’s vulnerability to global economic developments. In the upcoming year, regulatory clarity will serve as a critical driver, with initiatives like the SEC’s proposed ‘innovation exemption’ likely to shape how digital asset firms operate and scale. Concurrently, shifts in monetary policies among major economies will influence liquidity and risk appetite. While sentiment has improved from the panic of November, traders remain cautious, as reflected in the high levels of futures open interest indicating a preference for short-term tactical positions. Nonetheless, increased institutional engagement and clearer compliance frameworks foster a positive long-term outlook, marking 2026 as a year that could reward disciplined investment,” remarked Vikas Gupta, Country Manager for India at Bybit. Nischal Shetty, Founder of WazirX, commented: “Reflecting on 2025, the crypto landscape presents a mixed yet optimistic picture. Progress was evident through the growth of DeFi projects, the expansion of stablecoins, the initiation of new CBDC infrastructure pilots, and heightened developer engagement across the Asia-Pacific and globally, with millions contributing to on-chain development. However, the market correction in October served as a reminder of the fragility of investor sentiment and the potential pitfalls of hype without substantive results. Positive institutional movements and policy signals, however, provided significant momentum. Vanguard lifted its long-standing ban on crypto, allowing access to Bitcoin, Ethereum, XRP, and Solana ETFs, spurring mainstream adoption. The CFTC’s approval of spot crypto ETFs further accelerated this trend, reflecting a steady shift towards offering regulated crypto investments to traditional financial investors. Firms like BlackRock continued their disciplined investment approach toward digital assets. Looking ahead to 2026, optimism remains. In India, groundwork for the CBDC project may soon be laid. The RBI has announced a hackathon aimed at fostering technological talent in emerging sectors, encouraging more Indians to view this field as a viable career path. A more defined regulatory framework for VDAs, possibly coupled with favorable tax policies and support for stablecoin initiatives alongside CBDC measures, could unlock practical blockchain applications from Indian innovators and stimulate on-chain growth. While 2025 didn’t serve as a clear breakout year, it was undeniably transformative. Infrastructure matured, institutional involvement expanded, and global policy discussions intensified. Moving into 2026, the appetite for regulated digital asset products among institutions is expected to grow, driving capital inflows and enhancing market stability. Domestic policies will also play a crucial role in shaping investor sentiment across various countries.”
Semiconductor Developments
Following the successful push for self-reliance in the smartphone sector, India is now aiming to achieve similar independence in semiconductor manufacturing. This focus is crucial given the growing domestic demand and emerging technologies like AI. Moreover, semiconductors are vital to India’s ambition to establish itself as a manufacturing and innovation hub rather than merely a significant market. From developing indigenous chip designs to implementing schemes that incentivize local production, numerous efforts are underway in this regard. Last month, Union Minister Ashwini Vaishnaw announced that India plans to match the semiconductor manufacturing capabilities of the US, China, and other leading producers 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 government has already allocated nearly INR 629 billion (approximately $7.17 billion)—about 97% of the INR 650 billion (about $7.41 billion) earmarked as incentives for semiconductor production under this mission. The remaining budget can accommodate only a few smaller projects. The allocated funds include INR 100 billion (around $1.14 billion) designated for modernizing the Semiconductor Laboratory in Mohali, Punjab, and INR 10 billion (approximately $114 million) for the design-linked incentive scheme.
B2B SaaS Innovations
This year witnessed a shift in B2B Software as a Service (SaaS) towards verticalization and hyper-localization, adapting to the challenges posed by AI. Efforts have been made to establish frameworks that understand local contexts, while the implementation of the Digital Personal Data Protection (DPDP) Act has prompted SaaS providers to rethink their architectures with design at the forefront, alongside B2B privacy technologies. “While 2025 was characterized by intense AI experimentation, much of the value remained isolated within specific use cases rather than being fully integrated into enterprise decision-making processes. Looking towards 2026, Indian enterprises must transition beyond fragmented pilots and embed AI within their operational workflows. The traditional dichotomy between strict central control and unfettered self-service is no longer tenable,” stated Maurizio Garavello, Senior Vice President for the APAC Region at Qlik. “To thrive in this next phase, organizations must adopt a model of governed flexibility, ensuring data integrity, security, and accountability are paramount, while empowering teams closest to the business to innovate swiftly. At Qlik, we believe that for AI to genuinely scale within India’s rapidly growing economy, innovation must be rooted in a foundation of trusted data and a culture of collective responsibility,” he added.
India’s GCC Evolution
This year marked a strengthening of India’s Global Capability Centers (GCC) as the world embraced newer technologies, including AI. As noted earlier, the shift towards agentic AI has revitalized India’s position as a talent hub for tech companies seeking skilled professionals and infrastructure. The GCC landscape in India is also becoming more decentralized, with cities like Coimbatore, Kochi, and Ahmedabad emerging as attractive locations for smaller GCCs. “The year 2025 has been pivotal for India’s GCC narrative, moving beyond the conventional ‘back office’ perception. We now see significant work in product development, data analytics, and AI within Indian teams that own substantial outcomes—beyond mere volume. Simultaneously, external factors have shifted, with stricter U.S. visa regulations like the H-1B changes and the HIRE Act creating uncertainty for companies and Indian professionals abroad. Many organizations are now viewing India as a primary site for building capabilities rather than a secondary option, which is reflected in the growing inbound interest. In 2025, the emphasis has been on solidifying foundational elements: managerial depth, security standards, and streamlined operations within hybrid teams. GCCs that prioritized these fundamentals are already engaging in more strategic initiatives,” remarked Piyush Kedia, CEO and Founder of Incommon. “Looking ahead to 2026, I anticipate three distinct trends. Firstly, a rise in mid-market and private equity-backed companies establishing ‘India-first’ teams focusing on AI, data, and platform development. Secondly, the hub-and-spoke model will evolve, positioning Tier-2 cities as integral to talent strategies rather than merely cost-effective options. Thirdly, boards will increasingly evaluate GCCs based on their business impact—revenue, reliability, and innovation—rather than solely on headcount. At Incommon, we believe the next phase will belong to companies that treat India as an extension of their headquarters, maintaining the same standards for leadership, security, and execution. If India can continue to align capability with reliability, GCC 2.0 will be established here,” Kedia concluded.
