Indian IT companies are experiencing an increase in digital transformation deals for the fiscal year 2025, indicating a recovery in growth. This trend is part of a broader narrative in the technology sector, where companies are adapting to market demands and shifting towards digital solutions. Additionally, the Indian venture capital ecosystem has seen a rise in funding, totaling $2.5 billion in 2024, up from $1.9 billion in 2023, according to PitchBook data. However, the venture capital landscape remains cautious, with a 32% decrease in the number of funding rounds for startups as investors become more selective. The overall funding for startups has slightly increased to $11.3 billion in 2024, driven mainly by late-stage investments, while seed-stage deals have dropped by 50%. Amid these changes, the AI sector continues to thrive, contrasting with the struggles faced by non-AI startups in securing funding.