Beyond Deepseek: How Indian AI startups are leading cyber forensics and deepfake detection?

On March 2024, the Indian government allocated about INR 10K crore towards the India AI mission. The paltry $1.25 billion budget got a lukewarm response at a time when Big Techs were spending multi-billion dollars each quarter buying the coveted AI chips. 

The AI race had turned into a spending spree where government spending of $1.25 billion seemed inadequate. Fast forward to 2025, and the Indian government stands vindicated in its prudence. It was easy to get carried away as the American companies did by announcing massive half-a-trillion-dollar investments. 

Within days of the announcement of Stargate, amid much fanfare, a bombshell was dropped by a little-known Chinese startup. The emergence of Deepseek-R1 from China created a paradigm shift in the AI world, creating a powerful LLM with just $5.5 million. It shattered perceptions about the cost of developing a highly advanced AI foundational model and made expensive investment decisions look ridiculous. 

In contrast, the Indian approach looked judicious. The effectiveness of Deepseek crushed the assumption that more investments equals more AI chips, resulting in better AI. The AI investment arms race suffered a jolt as Deepseek became the top app in Apple’s app store.

As the Deepseek success made international headlines and captivated the tech industry, a minister in the Indian government recounted previous instances where “some people question the amount of investments the government has committed in India’s AI mission”. He cited the Deepseek example to argue how localized AI models can be developed with a frugal attitude. 

The domestic AI startups took note when the IT minister announced India is set to launch its first homegrown AI foundational model within the next 10 months. However, it’s underappreciated that the AI industry isn’t just about accumulating Nvidi chips and developing LLMs. Several Indian startups are developing AI tools that are working in niche areas like cyber forensics and deepfake detection.

Cyber forensics ecosystem in India
After the government adopted the Digital India mission, the country transformed into a giant digital economy where communications, commerce, and crimes all acquired a technological component. Cybercrimes have risen exponentially, leading to a corresponding demand for cyber forensics capabilities. 

In the AI era, the process of investigating digital evidence to trace, track and trial cyber criminals has become complex. The Ministry of Home Affairs set up the National Cyber Forensic Laboratory (NCFL) for forensic analysis and investigation of cybercrimes to support investigations undertaken by law enforcement agencies (LEAs). 

The Indian Computer Emergency Response Team (CERT-In), under the Ministry of Electronics and Information Technology (MeitY), was notified as India’s first Cyber Forensic Laboratory authorised to function as an ‘Examiner of Electronic Evidence’. 

Its recognition under section 79A of the IT Act 2000 strengthens the country’s cyber forensic capabilities. In January 2025, India and US signed an MOU on cybercrime investigations enhancing cooperation and information sharing on cyber threat intelligence and digital forensics in criminal investigations 

While government actions are crucial for a thriving cyber forensic environment, private investors and startups too are rapidly advancing. Livemint cited the data collected by Tracxn estimate that Indian cybersecurity startups in the last two years amassed fund inflows of about $130.7 million, nearly a 63% jump from two years prior. 

Global venture capital firms like Accel and domestic VC’s like RPG ventures are investing in Indian startups in the cybersecurity space. As per a PWC report of 2024, about 90% Indian business leaders see a significant cyber threat to their business. The private sector is ramping up on cyber defense tools, while the public sector, including government agencies expand their cyber forensic capabilities. 

The rapidly evolving cyber landscape and the parallel expansion of AI technology in India makes India a market to watch out for in the upcoming years. The country's cybersecurity market witnessed a 25% CAGR since 2019 and crossed USD 6 billion in 2023.  The Indian startups are set to stand apart in the global market and are poised to outperform their global peers in technological capabilities. 

Deepfake detection in India
Deepfakes have emerged as a unique threat in the era of generative AI. The public sector and private sector are responding to the challenges. Besides the IndiaAI Mission, MeitY is funding two research projects to detect AI-generated fake videos, audios, and images.  

McAfee research revealed that an average Indian encounters 4.7 deepfake videos online every day, and 66% of Indians report that they or their known ones have fallen victim to deepfake video scams in the last year. Unsurprisingly, global companies like McAfee are prioritizing Indian markets when they launch AI-powered deepfake detector to defend its users against such threats. 

The domestic companies and startups are rapidly investing in deepfake detection. Big Tech’s like Intel and Microsoft have their deepfake detection tools competing with Indian startups like pi-labs with their Authentify tool. It’s an AI vs AI battle wherein big tech companies with deep pockets and startups with ingenious solutions compete to detect, red flag, and alert human users. In high-stake areas like financial institutions, banks and the insurance sector, deepfake detection tools are expected to be a must-have tool integrated into existing digital infrastructure. 

With several Indian celebrities becoming the target of deepfake attack exposing them to negative PR, the deepfakes activity in social media have already attracted attention and raised awareness beyond the narrow niche segment. As generative AI empowers criminal elements, a corresponding growth among AI startups that detect deepfakes is inevitable. 

Conclusion
India’s AI ecosystem is evolving beyond pursuing foundational models, with a strong focus on cybersecurity, cyber forensics, and deepfake detection. The country’s balanced approach—investing in strategic AI capabilities rather than engaging in an unchecked spending race—has positioned Indian startups at the forefront of AI-driven security innovations.

With increasing cyber threats and the rise of deepfake-based fraud, both the public and private sectors are scaling their efforts. Government initiatives like the National Cyber Forensic Laboratory and private investments in cybersecurity startups are reinforcing India’s digital resilience. 

Meanwhile, homegrown AI startups are gaining recognition for their deepfake detection solutions, competing with global giants in an AI vs. AI battle.

As cyber threats become more sophisticated, India's AI-driven security ecosystem will continue to grow. With strong government backing, increasing private investments, and a robust startup landscape, the country is well-positioned to shape the global AI industry in the coming years.

-- Ankush Tiwari, Founder & CEO, pi labs.