India’s flourishing AI startup scene has served as a global innovation hub. A growing movement called the “Skip India Movement” is, nevertheless, altering the course of events. Frustrated by persistent demands for free Proof of Concepts (PoCs) and the undervaluation of their intellectual efforts, many Indian AI entrepreneurs are now choosing to bypass the domestic market entirely.

What is the “Skip India Movement”?

The term “Skip India Movement” describes a number of AI businesses with headquarters in Bengaluru and Delhi that consciously choose to forsake Indian customers in favour of global markets, primarily the US and Europe. This pattern results from Indian companies’ persistent demands that businesses build unique proofs of concept (PoCs) without any cash outlay, which many founders view as exploitative.

The PoC Problem in India

Unlike in mature markets where PoCs are often paid engagements, Indian corporates frequently expect startups to deliver complex solutions for free under the guise of “evaluation.” These unpaid trials often lead nowhere, draining the startup’s resources and demoralizing teams.

“AI founders finally skipping selling to Indian customers after doing PoCs after PoCs and then being requested for even more ‘free’ PoCs. There is a limit to this… Enough is enough.”

– Vaibhav Domkundwar (@vaibhavbetter), CEO of Better Capital.

Opportunities for India’s digital transformation have been lost as a result of this environment, which has delayed growth and deterred new businesses from pursuing domestic contracts.

The Global Pivot: Opportunities Abroad

Companies are concentrating on international clients that offer both financial support and strategic alignment rather than navigating the challenging Indian B2B market. Markets in the US, EU, and Middle East have shown greater openness to paying for pilots, validating use cases quickly, and scaling proven solutions.

Platforms like Product Hunt, Y Combinator, and Techstars have become launchpads for these startups, helping them secure international traction early in their journey.  

Impact on the Indian Startup Ecosystem

The “Skip India Movement” is both a wake-up call and an opportunity for Indian enterprises and government bodies. If left unaddressed, it may lead to a brain drain and weaken the domestic AI innovation pipeline.

For India to retain its position as a global AI leader, there must be a cultural shift in how startups are treated. By valuing innovation, compensating fairly for pilots, and fostering mutual trust, Indian corporates can reverse the “Skip India” trend and build a stronger ecosystem at home.

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