India Must Bet on Frugal Innovation and Vertical AI to Carve Its Own Path: India Global Innovation Connect 2026
NEW DELHI — India must forge its own path in the global AI race by leveraging frugal innovation, strategic international partnerships and vertically focused AI solutions rather than competing directly in the race for foundation models. This emerged as a key theme on Day 1 of the 5th edition of the India Global Innovation Connect (IGIC) 2026, which opened today in New Delhi.
Organised by Smadja & Smadja Strategic Advisory under the theme “India in the Age of AI”, the two-day summit has brought together policymakers, technologists, investors and business leaders to discuss the strategic choices that will define India’s position in the evolving global technology landscape.
With over US$20 billion committed to AI, nearly 2,200 Global Capability Centres employing 2.5 million professionals, and one of the world’s most advanced digital public infrastructure ecosystems, India has the foundations to emerge as a leading AI powerhouse. However, speakers stressed that addressing structural bottlenecks in procurement, financing and deep-tech commercialisation will be critical to unlocking this potential.
The opening plenary explored where India should compete and where it should leapfrog. V. Kamakoti, Director, IIT Madras, highlighted the need to ensure AI development is guided by ethics, accountability and sustainability, while Sanjeev Sanyal, Member of Prime Minister Narendra Modi’s Economic Advisory Council Secretary, Government of India made the case for a framework drawn from financial markets, “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. Without that, bad behaviour becomes pandemic. Ultimately, we will need a global governance architecture for AI — not unlike what SWIFT or the IMF represent for finance — but built on the recognition that you cannot tame a complex system through ex-ante rules alone.”
Claude Smadja, Co-founder, India Global Innovation Connect and Chairman, Smadja & Smadja, 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. By building purpose-driven partnerships, leveraging open innovation platforms and focusing on strategic sectors, India can accelerate innovation while overcoming resource constraints.”
From an investor perspective, Will Poole, Co-Founder and Managing Partner, Capria Ventures (USA), said India’s greatest opportunity lies in building specialised AI applications. “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,” he noted.
The second session focused on India’s transition from a strong technology ecosystem to a global innovation leader. Padmaja Ruparel, Founding Partner, Indian Angel Network, Co founder & Senior Managing Partner, IAN Group, India highlighted the growing ambition among Indian founders but underscored the need for patient capital and stronger funding mechanisms for deep-tech ventures.
The afternoon featured discussions on semiconductor innovation, biotech and healthtech, with experts examining how India can strengthen its role in global value chains. Ruchir Dixit, Vice President & Country Manager, Siemens EDA and Chairperson, IESA, said India has the opportunity not only to participate in the global technology ecosystem but to help shape it, driven by its engineering talent, growing startup ecosystem and increasing collaboration between industry, academia and government.
Over the next two days, IGIC 2026 will continue to explore startup funding, digital sovereignty, defence innovation, sustainability technologies and India’s role in the global AI order, with participation from leaders across industry, government and academia.
About India Global Innovation Connect:
India Global Innovation Connect is the brainchild of Claude Smadja and Yael Smadja, CEO of Smadja & Associates USA. Claude is the founder of Smadja & Smadja, a global strategic advisory firm, and has been associated with the World Economic Forum for 15 years. As Executive Director and then as the Managing Director of the organization. The first edition of IGIC took place in Bengaluru in 2022, drawing 300 participants. This was followed by IGIC 2023 with over 350 attendees and IGIC 2024, which saw participation grow to 450. For more information, please visit https://indiaglobalinnovationconnect.com/
