India in the Intelligence Era: Navigating AI, innovation and economic growth

As artificial intelligence and automation continue to reshape global industries, India finds itself at a pivotal moment in defining its digital and economic trajectory. With a flourishing technology sector, a burgeoning startup landscape, and a rapidly expanding digital economy, the nation is uniquely positioned to lead in the intelligence era. Yet, significant challenges remain - from workforce adaptation to regulatory frameworks and infrastructure development—that must be addressed to unlock this potential.

Industry leaders Sanjeev Bikhchandani, Founder and Executive Vice Chairman of Info Edge, and Dinesh Agarwal, Founder and CEO of Indiamart Intermesh, joined Nalin Mehta, Managing Editor of Moneycontrol, at Ad:tech 2025 on March 5 to discuss India's evolving role in an AI-driven world. Their session, titled "India in the Intelligence Era," explored the nation's ability to harness artificial intelligence, foster innovation, and maintain its competitive edge in a rapidly transforming global landscape.

Bikhchandani and Agarwal highlighted India's strong economic trajectory, emphasizing the country’s vast opportunities over the next quarter-century. India’s demographic dividend, robust education system, and established expertise in information technology have cemented its position as a global software powerhouse.

"For the past 25 years, the IT, BPO, and banking sectors have generated substantial entry-level employment," Agarwal noted. "But as AI advances, we must rethink the future of work—whether through large-scale manufacturing or emerging industries. The critical question is: where will the millions of graduates entering the workforce each year find employment?"

The discussion also spotlighted the role of micro, small, and medium enterprises (MSMEs) in job creation. While digital infrastructure and policy reforms have empowered medium-sized businesses, micro-enterprises continue to grapple with regulatory and compliance burdens.

"People are benefiting from infrastructure improvements and premiumization," Agarwal said. "But 90 percent of businesses are micro-enterprises. The real challenge is enabling them to operate more efficiently."

India has a rare opportunity to capitalize on shifting global supply chains, as companies increasingly seek alternatives to China. However, sustained manufacturing growth will require long-term investment in infrastructure and policy stability.

The nation’s startup ecosystem is also evolving, with AI-driven enterprises gaining prominence. While initial public offerings (IPOs) remain a crucial investment vehicle, Bikhchandani noted that market conditions now demand a more strategic approach. Unlike in previous years, he said, businesses must prioritize long-term value creation over short-term exits.

To secure its position as a global leader in the intelligence era, India must enhance ease of doing business, reform its tax structures, and invest significantly in workforce skill development. Addressing these challenges will be key to sustaining economic growth and reinforcing India's standing in the global digital economy.