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SOVEREIGN AI SECTOR RAISES $5.5 BN AS OF '26

The Morning Standard

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February 21, 2026

INDIA’ sovereign AI sector has raised more than $5.5 billion across over 1,700 firms, according to a new report by Tracxn.

- PADMINI DHRUVARAJ @ Bengaluru

The report, India and the Sovereign AI Shift, examines how the country is building its own artificial intelligence capabilities while staying connected to the global market.

As of 2026, India is home to more than 1,700 Al-native companies. Together, they have raised around $5.5 billion in equity funding. These companies work across enterprise software, consumer platforms, sector-specific tools and AI infrastructure.

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