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India is undergoing a significant transformation in the way public sector capacity building is designed and delivered. Conventional approaches centred on classroom training and participation are increasingly being supplemented by competency-based learning, digital platforms, institutional capacity building, performance-linked governance, State-level capability development and, more recently, artificial intelligence-enabled institutional readiness. This paper examines these emerging trends through recent developments under Mission Karmayogi, the iGOT Karmayogi platform, the Capacity Building Commission and NITI Aayog's State Support Mission. It argues that India's capacity-building agenda is moving from an input-orientated training model towards a broader institutional performance model. Recent government data indicate the scale of this transition. As of March 2026, iGOT Karmayogi had more than 1.53 crore users, over 4,600 courses and more than 8.3 crore course completions. In May 2026, the Department of Personnel and Training and the Capacity Building Commission convened a national summit explicitly focused on moving from training to performance-linked governance. In September 2026, the Capacity Building Commission also announced work on AI native public institutions, emphasising that AI readiness requires institutional systems and workflows rather than individual training alone. The paper concludes that the next stage of capacity building should be evaluated not simply through participation and course completion, but through changes in competencies, administrative behaviour, institutional performance and development outcomes.