India AI & Tech Daily | October 1, 2025: From Gaming Bans to DeepTech Funding

Explore the top AI and tech developments in India on Oct 1, 2025: Online Gaming Act enforcement, Kerala’s ₹25K Cr Tech Township, Assessli’s LBMs, Equal AI’s call assistant, Agnikul’s rocket plans, Anthropic’s India expansion, and MIT’s AI caution.

India’s technology and AI ecosystem is moving at a blistering pace, with government regulations, state-led mega projects, deeptech funding, and global players all converging on the same day’s headlines. Below is a detailed breakdown of the stories shaping the conversation, and why they matter.

Online Gaming Act Goes Live

Effective October 1, 2025, India’s new Online Gaming Act bans all online real-money gaming nationwide. Platforms, advertisers, and payment gateways are prohibited from facilitating these activities.

Impact on Startups: Dozens of gaming startups face immediate disruption, forcing pivots to casual or skill-based gaming that meets compliance.
Broader Ecosystem: Adtech and fintech companies tied to the gaming industry will feel ripple effects.
Why it matters: India is signaling a stricter approach to digital regulation, balancing consumer protection with innovation.

Kerala’s ₹25,000 Crore Tech Township

The Kerala government signed a ₹25,000 crore MoU with Tata Realty to develop a Tech Township in Kochi.

Scope: AI research hubs, data centers, residential clusters, and commercial spaces.
Strategic Vision: Positions Kerala as a new contender in India’s technology geography, beyond Bengaluru and Hyderabad.
Why it matters: State-driven tech infrastructure initiatives are critical to decentralizing India’s innovation economy.

Assessli and the Rise of Large Behavioural Models

Assessli, a Bengaluru-based startup, raised ₹44.4 crore (~$5M) from Foxhog Ventures to advance its proprietary Large Behavioural Models (LBMs).

What they do: Unlike LLMs that analyze language, LBMs are designed to model human behaviour patterns for applications in hiring, advertising, and commerce.
Investor Interest: First-of-its-kind round for behaviour-aware AI in India.
Why it matters: LBMs could open new frontiers in AI personalization, but also raise serious ethical and privacy questions.

Broader Implications of LBMs

LBMs might reshape consumer insights, HR assessments, and ad targeting. However, the blurred lines between observation and surveillance could spark debates around fairness and transparency. As India considers data protection and AI ethics frameworks, startups like Assessli will be test cases for “responsible AI.”

Equal AI Launches India’s First Indigenous AI Call Assistant

Equal AI announced the rollout of its voice-based AI call assistant designed for Indian SMEs.

USP: Handles inbound and outbound calls in regional languages with human-like interaction.
Market Fit: India’s 60M+ SME sector struggles with customer support; Equal AI wants to be the AI-powered fix.
Why it matters: Indigenous solutions for vernacular markets are key for broad AI adoption.

Why Vernacular AI Matters

India’s AI adoption curve has historically lagged when products are English-first. Regional AI tools ensure inclusivity, helping SMEs in Tier-2/3 cities participate in the digital economy. Equal AI could set a precedent for scaling indigenous products nationwide.

Agnikul’s Reusable Rocket Ambitions

Chennai-based spacetech startup Agnikul Cosmos revealed plans to develop reusable small-satellite launch vehicles.

Current Status: Known for 3D-printed engines and low-cost launches.
Next Phase: Reusability could dramatically reduce launch costs and scale India’s satellite economy.
Why it matters: India’s growing role in the global space race extends beyond ISRO to nimble private players.

India’s Space Advantage

Private startups like Agnikul and Skyroot are putting India on the map for affordable access to space. With reusable technology, India could compete with SpaceX in specific niches like small-satellite launches, giving Indian space-tech its own identity.

Anthropic Expands Hiring in India

US-based AI firm Anthropic (creator of Claude) listed a Country Lead for India role.

Strategic Play: India is becoming central for both talent and enterprise AI adoption.
Competitive Landscape: Pits Anthropic directly against OpenAI, Google, and Microsoft in India’s enterprise AI market.
Why it matters: Global AI firms see India not just as a market, but as a strategic base for growth.

Why India is Attractive

India offers a rare combination of deep tech talent, cost-effective scaling, and fast-growing enterprise demand. With Anthropic’s entry, competition for top-tier Indian AI talent is expected to intensify.

MIT Study: 95% of AI Investments Fail

A new MIT report finds that 95% of AI projects fail to scale, largely due to poor data quality and governance.

Global Implication: Trillions in wasted investment worldwide.
India Angle: For Indian enterprises racing to adopt AI, the lesson is clear: without reliable data, projects will collapse.
Why it matters: Scaling AI isn’t about hype cycles, it’s about disciplined execution.

Lessons for India

Indian businesses often rush to adopt AI without proper data pipelines or governance frameworks. This report underscores the urgent need for investments in data readiness: clean, structured, and representative datasets, before scaling AI pilots.

Big Picture Insight

India’s AI and tech landscape is evolving from ambition to action. Regulations like the Gaming Act show tougher governance; state investments like Kerala’s township demonstrate intent to decentralize; and startups like Assessli, Equal AI, and Agnikul prove innovation is alive across verticals. At the same time, global players like Anthropic entering India and sobering reminders from MIT highlight both opportunity and caution.

The real challenge ahead? Execution at scale: ensuring that policies, talent, infrastructure, and innovation align to make India not just a participant, but a leader, in the global AI race.