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The number of participants at the AI Impact Summit in Delhi from nearly 100 countries.

Last week, Delhi welcomed the world. With over 250,000 participants from nearly 100 countries, the very first global AI Impact Summit in the Global South was not only a signal of India’s increasingly recognised role in the AI landscape, but geopolitical weight. India used the moment to signal its growing weight in the AI landscape, backed by a wave of investment commitments and bilateral partnerships that will be difficult to ignore.

India’s role in technological innovation is still underestimated. Often described as the outsourcing hub of the world, India actually is a top 3 leader in AI as per Stanford’s AI Vibrancy Index and the most important country outside of the US for globally leading tech companies such as Google or Microsoft. The India AI Impact Summit therefore provided a global stage to showcase domestic developments as well as signals why global businesses make India one of their most important market not only for technological development, but testing and implementation at scale.

These headlines were made last week:

Furthermore, 89 countries so far signed the summit declaration that is focused on the AI development for shared benefits by all of humanity. This adds to the Indian government’s push for AI safety and regulation, which for example requires platforms such as Instagram or TikTok to clearly label AI generated content.

Overall, India’s role as AI epicentre is visibly accelerating and already impacting investment flows and international partnerships. Agreements such as the Germany-India AI pact lands at a telling moment and alongside a wave of major investment commitments in India’s AI ecosystem from leading tech companies and local players.

The convergence of infrastructure investment, organic user adoption, and multilateral partnerships makes India's trajectory distinct from previous waves of tech optimism about emerging markets. For European businesses and policymakers in particular, it’s time to move quickly enough to shape what that partnership could look like.

Sources: Government of India, Yotta, Times of India, TechCrunch, DW. IndianWeb2

While recent focus and headlines were about India’s AI ecosystem developments, a larger number of multinationals across the automotive, electronics, and aerospace sector set up their first manufacturing sites and confirm the country’s importance in global supply chains.

India’s manufacturing sector has seen substantial growth. With a PMI of 59.3 in February, up from 58.4 in the prior month, stats are stating healthy demand and development. Several recent announcements add to the positive sentiment:

What makes this wave of announcements significant is not any single investment, but the breadth of sectors and the geographic diversity of the companies involved. From British automotive to Chinese electronics and Brazilian aerospace, multinationals are no longer treating India not as an afterthought in their supply chain strategy.

For European businesses, the signals are hard to ignore. LG's decision to manufacture in Pune for export to European markets is a direct reminder that India is no longer purely a destination for European goods, but is becoming a source for increasing competition. Companies that have not yet assessed India as a manufacturing base risk finding themselves at a cost, speed and customer disadvantage relative to peers who move earlier. Beyond cost, India offers scale and a growing domestic consumer base to absorb production risk, which European businesses need to take into account as well.

Sources: Times of India, The Economic Times, The Hindu

The global leader for automation machinery and pneumatic systems Festo just inaugurated its new Global Capability Centre (GCC) in Bengaluru, confirming its commitment to leveraging India's engineering talent.

Celebrating 100 years of innovation recently, the company now wants to further unlock India's innovation and technology ecosystem to remain future ready. With around 40 years of history in India already, this is a clear signal of the country's long-term importance to Festo's global strategy.

Some details:

This expansion confirms a trend I’ve been experiencing in my work with Zinnov, and tracking through India Rising: German and European companies are increasingly establishing Global Capability Centers (GCCs) in India to access its technology ecosystem.

Whether driven by digital transformation needs, R&D capabilities, or access to India’s deep tech talent pool, I expect the GCC momentum will only grow. Siemens AG for example is strategically shifting to India, as its Chief People Office Judith Wiese highlighted the 15-20% workforce decline in Germany over the next decade the main reason for increasing capabilities in India.

For European companies still treating India as a peripheral market or a back-office location, the window to define a strategic position on their own terms is narrowing. The talent is there, the infrastructure is improving, and competitors are already moving. Festo's GCC is one more data point in a pattern that is becoming too consistent to ignore.

Sources: The Economic Times, LiveMint

How are residents reclaiming urban spaces to create a greener future? This 7 minutes short report shares how rooftops in Chennai or Lübeck are being repurposed.

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

This week: Our collaboration with The Indian Dream - Compassionate Capitalism

This is an excerpt from The Indian Dream’s recent publication on India’s compassionate capitalism and how it differs from the Western approach.

Read the full article here.

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