From "make in India" to "skip India": AI startups losing faith in local market amid growing frustration
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A recent viral LinkedIn post has ignited a conversation around a troubling trend in India’s startup ecosystem — artificial intelligence startups increasingly opting out of engaging with Indian clients.
Dubbed the “Skip India” trend, the phenomenon sheds light on a deeper issue affecting early-stage innovation: the lack of support, financial commitment, and respect for startup value.
In a post that has garnered widespread attention, finance professional Shubham Garg revealed how several Indian AI startup founders are choosing to bypass local enterprises altogether. The core frustration? Many Indian companies ask for free proof of concepts (PoCs), drawing startups into extended pilot phases with no certainty of conversion or payment.
According to Shubham, “We love to celebrate startups after they make it, but when they're building, we hesitate to support them. We ask for discounts, want free access, and treat innovation like a trial version, not a value driver. If we want India to lead in AI, this has to change."
The post resonates with many in the startup community who say that despite India’s ambition to become a global AI hub, the domestic market often undervalues homegrown innovation. Founders report dealing with indecisive communication, repeated delays, and a persistent reluctance to invest in new technology during its formative phase.
As a result, many startups are redirecting their focus to international markets where they find more appreciation — and, crucially, more willingness to pay — for their products and services.
One commenter captured the sentiment, stating, "If we keep expecting startups to work for free like they're handing out samples, they'll eventually take their skills somewhere else. Real support means paying them fairly for their hard work. At the same time, startups should also show their value clearly so customers know what they're paying for."
Another user echoed the concern, saying, “It's disheartening to see the disconnect between innovation and valuation in our ecosystem. Supporting startups goes beyond just acknowledgement; it requires genuine financial commitment. If we truly want to foster growth and innovation in India, we must change our mindset and recognise the value they bring to the table."
