Infrastructure and ecosystem capabilities are emerging as key value drivers
One of the most important developments within the market is the growing emphasis on AI-adjacent capabilities. Businesses operating in cloud computing, data analytics, cybersecurity and managed services continue to attract significant investor attention because they provide the infrastructure upon which AI deployment depends. As enterprises scale their AI initiatives, demand for secure data environments, cloud capacity, governance controls and advanced analytics capabilities continues to grow.The investment thesis has evolved considerably from previous technology cycles. Historically, niche technical expertise often attracted premium valuations. Today, the widespread availability of AI models, cloud platforms and open-source tools means that technical capability alone may no longer represent a durable competitive advantage. Instead, investors increasingly assess businesses through three lenses: their ability to deliver at scale, their depth of expertise in regulated sectors and their relationships across major technology ecosystems and cloud platforms. Organisations that combine these characteristics are likely to remain attractive acquisition and investment targets.
India's national AI strategy continues to expand
Alongside private-sector investment activity, India is pursuing an ambitious strategy to strengthen its position in the global AI economy. Government initiatives are focused on democratising access to AI, expanding research capabilities and supporting domestic innovation through data, infrastructure and talent development. As of December 2025, the India AI Mission's national datasets platform, AI Kosh, hosted more than 5,500 datasets and 251 AI models across 20 sectors, according to the Press Information Bureau, supporting the development of solutions tailored to local languages, industries and societal challenges.Large-scale infrastructure investment will shape the next growth phase
India's ambitions extend beyond software and AI applications. At the AI Impact Summit in New Delhi in February 2026, India's Minister for Electronics and Information Technology, Ashwini Vaishnaw, announced that India aims to attract more than US$200 billion of AI infrastructure investment by 2028, covering data centres, computing capacity, semiconductors and supporting infrastructure. Around US$70 billion of this has already been pledged by major US technology companies, including Amazon, Google and Microsoft, to expand AI and cloud infrastructure in India, providing a foundation for the government's broader target. Further policy support, including long-term tax relief for export-oriented cloud services and a government-backed venture capital programme, is intended to encourage additional capital deployment. A major component of this strategy involves expanding access to computing resources. Under the India AI Mission, shared compute capacity has grown to more than 38,000 GPUs, with a further 20,000 units expected to be added in the near term, reflecting the growing importance of access to processing power as a competitive advantage. This strategy aims not only to attract international investment but also to ensure that domestic businesses, start-ups and researchers can participate in the next phase of AI development.What this means for businesses
For organisations evaluating opportunities in India's AI-driven economy, several practical considerations are emerging:
- For investors and acquirers: due diligence is increasingly focused on the scalability of platforms, depth of sector expertise and the strength of existing relationships with major cloud and technology ecosystems, rather than on proprietary AI technology alone. Assessing a target's data infrastructure, governance controls and long-term ecosystem positioning is becoming as important as assessing its technology itself.
- For businesses building or scaling AI-adjacent infrastructure (cloud, data analytics, cybersecurity, managed services): now is the time to evaluate how well-positioned your platform is to support enterprise-scale AI deployment, and whether your governance and security capabilities meet the standards enterprise customers and investors will expect.
- For businesses considering entering or expanding in India's infrastructure market: the scale of planned investment in data centres, compute capacity and semiconductors signals a period of significant activity, and organisations that engage early with this ecosystem may be better placed to benefit from the next phase of growth
Organisations navigating this landscape should treat growth, technology adoption and risk management as interconnected priorities rather than addressing them in isolation.
Looking ahead
The next stage of India's technology growth is likely to be defined by infrastructure, execution and ecosystem strength rather than standalone AI capability. Businesses that combine innovation with scale, sector expertise and strong governance are likely to be best positioned to benefit from this growth. Sustainable commercial models will be central to capturing that opportunity over the long term.
As AI adoption continues to accelerate, the organisations that approach growth, technology and risk management as interconnected priorities will be best placed to capitalise on the opportunities emerging across India's rapidly evolving digital economy.
DWF is a leading legal adviser to Indian and India-focussed companies, financial institutions and high net worth individuals and families. Our India Group, consisting of 108 lawyers from 9 countries, 16 practice areas and 9 sector groups, is the largest India group of any international law firm located outside India.
Dhruv Chhatralia BEM, the Head of the DWF India Group, was named to the India Business Law Journal’s International A-List 2024 featuring the world’s top-tier international lawyers outside India, based on recommendations by general counsels and lawyers at Indian law firms, for his work on cross-border aspects of India-related matters. DWF was ranked as an International Firm to Watch by the IBLJ in 2025. DWF was also shortlisted for the award of “Legal Practice of the Year” at the 6th Annual UK-India Awards in 2024 based on the achievements of the DWF India Group. Further details about the DWF India Group can be found on the following webpage: https://dwfgroup.com/en/services/india-group.
While we do not practice Indian law as per the country’s current regulatory framework, we have strong relationships with leading Indian law firms with whom we collaborate to provide a seamless service to our clients. If you have queries on any of the issues covered in this article, please do get in touch with me.
With thanks to Kartik Monga, Andrea Tarazi and Hrutika Bhaasker.
