Even as the year draws to a close, the technology sector continues to experience remarkable advancements and innovations. This year has been no exception, with artificial intelligence (AI) taking center stage in discussions surrounding technological progress. AI has not only evolved to become more sophisticated and efficient but has also become more integrated within both new and established workflows. However, technology encompasses much more than just AI. Let’s explore various sectors in greater detail.
### From Generative to Agentic AI
Generative AI has revolutionized our online interactions. This year, the technology reached new heights, evolving into what is known as Agentic AI—advanced iterations of existing chatbots capable of executing basic commands. Agentic AI functions as autonomous systems, performing tasks with minimal to no human input. In 2025, numerous companies began adopting AI agents to streamline their workflows, a trend that is expected to persist into the next year. On a policy level, India has initiated discussions surrounding AI, aiming to make the technology more inclusive and sovereign. Shammik Gupta, Founder and CEO of 3Cubed, remarked, “If 2025 taught leaders anything, it’s this: AI didn’t fail. Our expectations did. Last year was filled with copilots, dashboards, and demos, yet few enterprises can genuinely claim improved efficiency. Costs remained high, customer experience was inconsistent, and teams became more overwhelmed rather than streamlined. The root issue wasn’t the technology but rather our execution and belief in its potential.”
Gupta further outlined three critical insights: first, visibility is more valuable than intelligence. AI cannot remedy issues that leaders are blind to; most organizations still lack a comprehensive understanding of their operational workflows. Second, data exhaust does not equate to actionable insights. While dashboards indicate what has occurred and logs reveal where, they do not explain why events transpired. Absent this causative context, AI merely accelerates noise. Third, automation without context can lead to instability. Many companies have automated processes but subsequently added layers of reviews and exceptions, which has heightened costs, risks, and diminished trust. The lesson learned is that organizations require a clearer understanding of their operational systems rather than simply better AI models.
As we move into 2026, the utilization of AI is anticipated to transform significantly, resembling a partnership rather than a mere tool. This evolution is poised to change engineering practices and how organizations approach development. The interaction between humans and machines is set to improve dramatically, facilitated by the advent of humanoids and intelligent agents. Additionally, advancements in smaller, faster, and more cost-efficient models are pushing intelligence closer to the source, shifting scalability considerations from raw computational power to return on investment.
### Cryptocurrency & Web3
Despite the government’s hesitation to officially recognize conventional cryptocurrencies, substantial efforts are underway to explore alternative solutions. For instance, the Central Bank Digital Currency (CBDC) initiative is progressing, focusing on retail and B2B ‘Deposit Tokenization’ to facilitate seamless, instantaneous, and programmable cross-border payments for smaller businesses. Various B2B platforms are gradually embracing blockchain technology for tasks such as tokenizing invoices and supply chain assets. In terms of safety and governance, the Financial Intelligence Unit (FIU) compliance for all Virtual Digital Asset (VDA) providers is seen as a move to regulate the industry.
As we head into 2026, the cryptocurrency sector is preparing for a phase of strategic consolidation. The significant volatility experienced in late 2025 highlighted the market’s sensitivity to global economic fluctuations. Regulatory clarity is expected to be the primary driving force in the upcoming year, with initiatives like the SEC’s proposed “innovation exemption” poised to impact how digital asset firms operate. Concurrently, shifts in monetary policies across major economies will influence liquidity and risk appetite. Although trader sentiment has improved from the extreme fear observed in November, caution remains, characterized by heightened futures open interest indicating shorter positioning. Nevertheless, increased institutional engagement and clearer compliance frameworks are fostering a positive long-term outlook, suggesting that 2026 could reward those who maintain disciplined investment practices.
Nischal Shetty, Founder of WazirX, reflected on 2025 as a year of mixed but hopeful developments for the crypto industry. It witnessed significant advancements, including growth in decentralized finance (DeFi) projects, the expansion of stablecoins, new pilot programs for CBDC infrastructure, and rising developer engagement across Asia-Pacific and beyond. However, the market correction in October served as a reminder of the fragility of sentiment, illustrating that hype without tangible results can still hurt the industry. Positive institutional shifts and policy signals have fueled meaningful momentum, as evidenced by Vanguard’s decision to allow crypto ETFs for Bitcoin, Ethereum, XRP, and Solana, boosting mainstream adoption. The approval of spot crypto ETFs by the Commodity Futures Trading Commission (CFTC) has further strengthened the push toward regulated crypto exposure for traditional investors, with firms like BlackRock continuing to invest strategically in digital assets.
Looking forward to 2026, there is reason for cautious optimism. In India, the groundwork for the CBDC project is expected to be laid soon, with the Reserve Bank of India (RBI) announcing a hackathon to cultivate tech talent in emerging technologies, thereby encouraging Indian professionals to pursue careers in these fields. A clearer regulatory framework for VDAs, paired with favorable tax measures and support for stablecoin initiatives alongside CBDC efforts, could unlock genuine blockchain applications for Indian developers and foster on-chain growth.
In summary, while 2025 may not have been a breakout year, it undeniably marked a transformative period. The infrastructure matured, institutional participation broadened, and global policy discussions sharpened. In 2026, the growing institutional appetite for regulated digital asset products is likely to drive capital inflows and enhance market stability, with domestic policies playing a crucial role in shaping investor sentiment.
### Semiconductor Developments
Following the successful push for self-sufficiency in the smartphone sector, India aims to achieve similar independence in semiconductor manufacturing. This initiative is crucial, given the rising domestic demand and emerging fields like AI that rely heavily on semiconductor technology. Furthermore, semiconductors are essential to India’s ambition of becoming a manufacturing hub rather than just a large consumer market. Significant progress has been made, ranging from indigenous chip designs to incentives for domestic production.
Recently, Union Minister Ashwini Vaishnaw announced that India’s chipmaking capabilities are on track to compete with those of the U.S., China, and other leading manufacturers by 2032. The India Semiconductor Mission, which has a budget of $10 billion, aims to enhance local manufacturing, design, and talent development. Electronics and IT Secretary S. Krishnan confirmed that the central government has already allocated nearly INR 629 billion (approximately $7.17 billion), representing about 97 percent of the INR 650 billion (around $7.41 billion) set aside for semiconductor production under this mission. The budget will support chip production, with INR 100 billion (around $1.14 billion) designated for modernizing the Semiconductor Laboratory in Mohali, Punjab, and INR 10 billion (approximately $114 million) earmarked for a design-linked incentive scheme.
### B2B SaaS Trends
This year witnessed a transformation in the B2B Software as a Service (SaaS) sector, with a focus on vertical integration and localization, while also adapting to challenges posed by AI. Efforts have been made to create frameworks that resonate with local contexts, and the implementation of the Digital Personal Data Protection (DPDP) Act has prompted SaaS providers to rethink their architectural strategies, placing design at the forefront alongside privacy-focused tools.
Maurizio Garavello, SVP for the APAC region at Qlik, noted, “While 2025 was characterized by intense AI experimentation, much of the value remained isolated within specific use cases rather than becoming fully integrated into enterprise decision-making. As we look toward 2026, Indian enterprises must transcend fragmented pilot projects and embed AI into the core of their operational workflows. The previous trade-off between strict central control and unregulated self-service is no longer feasible.”
To thrive in this upcoming phase, organizations must embrace a model of governed flexibility, ensuring that data integrity, security, and accountability are prioritized while empowering teams closest to the business to innovate rapidly. According to Qlik, for AI to achieve true scalability within India’s burgeoning economy, innovation must be grounded in reliable data and foster a culture of collective accountability.
### India’s GCC Transformation
This year marked a significant strengthening of India’s Global Capability Centers (GCC) as the world embraced new technologies, particularly AI. As highlighted earlier, the shift to agentic AI has reinforced India’s status as a talent hub for tech companies seeking skilled professionals and robust infrastructure. Furthermore, the GCC landscape in India is becoming increasingly decentralized, with cities like Coimbatore, Kochi, and Ahmedabad emerging as attractive locations for smaller GCCs.
Piyush Kedia, CEO and founder of Incommon, stated, “2025 has been a pivotal year for India’s GCC narrative. We have evolved beyond the traditional ‘back office’ perspective. The most compelling work now involves product development, data analysis, and AI within Indian teams that are accountable for tangible outcomes, rather than mere output volume. Concurrently, the external environment has shifted, with stricter U.S. visa regulations like the H-1B changes and the HIRE Act creating uncertainty for both companies and Indian professionals abroad. Many organizations are now positioning India as a primary development site, rather than a contingency plan, which has resulted in increased interest in the region.”
Looking ahead to 2026, Kedia anticipates three significant trends: firstly, a rise in mid-market and private equity-backed companies establishing ‘India-first’ teams for AI, data, and platform initiatives; secondly, the maturation of hub-and-spoke models, with Tier-2 cities becoming critical components of talent strategies rather than merely cost-driven choices; and thirdly, boards will increasingly assess GCCs based on business impact—focusing on revenue, reliability, and innovation rather than headcount alone. Kedia concluded by emphasizing that the next phase belongs to companies that regard India as an extension of their headquarters, maintaining high standards for leadership, security, and execution. If India can successfully align capability with predictability, it will establish a strong foundation for GCC 2.0.
