This is the last issue of 2025! Check out our recap in today’s Spotlight and I look forward to what 2026 will bring. Thank you for being part of India Rising. It’s great to have you here.

Here are the topics of our last issue this year:

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India’s ranking in Stanford’s AI Vibrancy Index, outperforming Europe by a wide margin.

India’s role in the technology sector is still underestimated. The time as pure outsourcing hub is long gone and global businesses of all sizes come to India not for the cost arbitrage that might still exist, but to access the ecosystem and talent pool. Stanford’s latest AI Vibrancy Index confirms that India already is a crucial player in future technologies such as AI, well outperforming European peers.

AI development is accelerating in many countries, and influenced by a range of factors. Stanford University’s Global AI Vibrancy Tool combines and transparently evaluates 39 data sets such as user preferences, policy decisions, or establishment of AI Centre of Excellence in order to identify global and national trends.

The absolute numbers shared in the graph above are cumulated by the following measures of AI development:

A detailed comparison of countries indicates their key strengths and weaknesses:

Overall, the US is still the clear leader in AI based on the vibrancy index dataset, thanks to its strong AI economy and R&D. India is a clear leader in talent availability and R&D, but struggles with an underdeveloped infrastructure. The latter is getting boosted by various private players, from Big Tech to Indian conglomerates, highlighting India’s role in the AI race.

European economies on the other hand have a good talent base, but to some surprise clear weaknesses in R&D, responsible AI, and economy. A closer look at the definition of these metrics in the report indicates the following:

It’s important to add that US companies, now leaders in AI and technology, have leveraged India’s talent and technology ecosystems for over three decades. Google, Microsoft, or Amazon, drive innovation in their tech hubs across the country. Nvidia, Qualcomm, AMD or Texas Instruments design semiconductors. And it’s crucial to be aware that the talent is no longer leaving the country, given the opportunities in Bengaluru, Chennai, Hyderabad, or Pune.

A recent article by the German magazine Die Zeit looked into the impact of AI development in India’s tech hubs. In short: rather limited, as India is expected to play a key role in the implementation of AI in global workflows. A quote by one of the interviewed software engineers is on point: “Aus meinem Freundeskreis ist kaum jemand ins Ausland gegangen" (“Hardly anyone from my circle of friends has gone abroad.").

European companies can unlock substantial synergies with their own technology hubs in India. And should change their strategy and do so in order to gain access to key talent and ecosystems.

Sources: Stanford, AI Index 2025, AI Vibrancy Tool, Die Zeit

India’s manufacturing capabilities and ecosystems saw substantial progress in 2025. A large number of domestic and international players across all sectors expanded their presence or established new ones, and just before the end of the year, announcements by France’s Schneider Electric and Germany’s Knorr-Bremse confirm India’s increasing importance in global supply chains. And unveil a new trend: the integration of manufacturing with AI and engineering hubs.

The contrast is instructive: Schneider Electric’s investment intends to strengthen the company’s domestic manufacturing capacity, improving global supply chains at the same time as the expansion will support exports.

Knorr-Bremse will follow an integrated approach: by combining manufacturing capabilities with an engineering hub and AI Centre of Excellence (CoE), the German company plans to leverage India’s ecosystems in engineering and cutting edge technology for driving innovation globally, on top of manufacturing for the domestic market.

As the development integrates Knorr-Bremse’s engineering hub and AI CoE with their manufacturing site, it very much defines the strategic considerations of AI CoEs for global businesses (see Zinnov AI CoE Playbook). The technology consultancy Zinnov (disclaimer: I’m advisor to Zinnov) supported Knorr-Bremse structure and secure this project.

Both announcements exemplify the key trends that India is becoming both a manufacturing as well as technology hub that is crucial for multinational businesses. The upcoming Free Trade Agreement will most likely increase the demand and interest for investments in the country, highlighting India’s position in global supply chains and as an important domestic market alike.

European businesses need to understand that their clients and ecosystem partners are moving to India to increase their competitiveness and establish a new market. The biggest risk is to ignore this trend for too long.

Sources: CNBC TV18, Times of India, Zinnov

The US financial institution J.P. Morgan (JPM) is reorganising its global footprint. After the recent opening of its new HQ in New York and a newly announced large scale office in London’s Canary Wharf, JPM reportedly signed an agreement with Brookfield in Mumbai, the center of India’s financial industry. The intended development will be Asia’s largest Global Capability Centre (GCC).

The development is substantial in size and commitment:

This is clearly signalling that India is a key hub for technology and innovation and becoming increasingly competitive. This follows last week's announcements of USD 67.5+ billion in AI infrastructure investments by US tech companies. With today’s insights on the AI competitiveness of the country and Knorr-Bremse’s investment, JPM and Brookfield confirm it again.

Competition will not only increase in securing talent. The real estate sector will play a crucial role in meeting the accelerating demand and attracting the talent these multinationals search for. Availability of prime real estate might become an issue and strategic collaborations with real estate developers are most likely to continue. GCCs accounted for 40% of office leases in 2025 and are a key driver for developments in tier 2 cities.

Sources: Business Standard, Construction Week Online, The Economic Times

As 2025 comes to an end, I have a lot to be thankful for.

What started only 9 months ago has become a platform of exchange:

Thank you, dear fellow Risers and supporters!

Special thanks to this year's contributors Kanwar Vivswan, Janine Haesler, Vijay Kumar Vaddadi, Shweta Sawhney, Araddhna Mangala, Adithya Ramalingam, Wolfgang Bergthaler, Godson George Micheal Rai, and Priya Samikumar as well as Indo-German Young Leaders Forum for providing a recap through their platform 🙏 !

We have exciting plans for the new year and I’m wishing you all the best for 2026!

Your random facts and stories about India and the Indo-European friendship.

This week: Christmas celebrations in Europe and India

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