India has the potential to become a global AI powerhouse, but winning the race requires skipping the development of foundation models and focusing on frugal innovation and vertical AI. This was the key message on Day 1 of the 5th India Global Innovation Connect (IGIC) 2026, held in New Delhi under the theme 'India in the Age of AI'.
Organized by Smadja & Smadja Strategic Advisory, the two-day summit brought together policymakers, technologists, and investors to discuss India's strategic choices. With over US$20 billion committed to AI, nearly 2,200 Global Capability Centres employing 2.5 million professionals, and advanced digital public infrastructure, India has strong foundations. However, the bottlenecks remain in procurement, financing, and deep-tech commercialization.
Key Insights from the Opening Plenary
The opening plenary set the tone for where India should compete. V Kamakoti, Director of IIT Madras, emphasized that AI development must be guided by 'ethics, accountability, and sustainability.' Sanjeev Sanyal, Member of PM Modi's Economic Advisory Council, argued for regulating AI like financial markets treat non-deterministic systems. He stated, 'AI is a non-deterministic complex system, and we need to regulate it like one. What works is skin in the game: clear accountability, identifiable actors who bear the consequences of failure. Ultimately, we will need a global governance architecture for AI, not unlike what SWIFT or the IMF represent for finance.'
Claude Smadja, Co-founder of IGIC and Chairman of Smadja & Smadja, highlighted India's ability to 'achieve more with less.' He said, 'India's strength has always been its ability to achieve more with less. Just as frugal innovation enabled remarkable achievements in sectors like space technology, the AI era presents a similar opportunity. Through strategic partnerships, leveraging open innovation platforms, and focusing on strategic sectors, India can accelerate innovation while overcoming resource constraints.'
Investor Perspectives on Vertical AI
Investors echoed the vertical focus. Will Poole, Co-Founder and Managing Partner of Capria Ventures, stated, 'The opportunity is not to chase foundation models, but to build vertically focused AI solutions that solve real-world problems at scale and can be exported globally.' Padmaja Ruparel, Founding Partner of Indian Angel Network, highlighted founder ambition but called for 'patient capital and stronger funding mechanisms for deep-tech ventures.'
Sessions throughout the day covered semiconductor innovation, biotech, and healthtech. Ruchir Dixit, Vice President & Country Manager of Siemens EDA, said India can 'not only participate in the global technology ecosystem but help shape it,' driven by engineering talent and closer industry-academia-government collaboration.
Over the next two days, IGIC 2026 will delve into startup funding, digital sovereignty, defense innovation, and sustainability tech as India charts its own path in the AI order.
