• India drew just $1.16B in AI funding in 2024 vs. $109B by the U.S.
• Gaurav Munjal says India is “building Bhujia companies” while others lead in AI.
• Urges more private capital and risk-taking in deep-tech and AI innovation.

Unacademy and Airlearn CEO Gaurav Munjal has set off a widespread debate among India's startup scene with a strongly worded LinkedIn post pointing out India's deficit in artificial intelligence (AI) investment. "$465B in AI investments worldwide. Less than $1B in India. We are working on creating Bhujia businesses while others are eating our lunch in AI," he wrote, pointing out the stark disparity between India and top global tech economies.

Based on the Stanford 2025 AI Index, private venture capital investment in AI hit a record $131.5 billion worldwide in 2024 with the U.S. alone contributing $109.1 billion. China contributed $9.3 billion and the UK $4.5 billion. India was 12th with a paltry $1.16 billion in private funding for AI less than 1% of that in the U.S. Even collectively, India's private investment in AI between 2013 and 2024 was $11.29 billion, which is less than what the U.S. spent in one year.

Though the Indian government has declared its intention to invest in AI development sanctioning a Rs  10,372 crore India AI Mission in March 2024 Munjal opines that this would not suffice to close the gap. He stressed the requirement for more intensified private sector involvement and mental shift among Indian founders and investors towards taking greater risks in deep-tech areas.

Munjal's post caused a variety of reactions on the internet. Some users praised the honesty, blaming India's lag behind in technology to the legacy of IT services that focused more on execution than innovation. Others were more tongue-in-cheek or optimistic, saying India might find its way into the space for AI within ten years. Some were critical of the tone of the comment, saying they too create consumer or FMCG businesses like "Bhujia companies" that help the economy and which should not be mocked.

Despite the varying views, the post has set off an urgent debate regarding India's need to raise its AI and emerging technologies ambitions beyond safe bets and towards high-impact innovation.