India in the global AI race: Misunderstood or Undervalued?

The global AI race is already heating up, with countries like the United States and China investing billions into AI research and development, it's easy to feel that India is being left behind in the dust. Critics often highlight India’s relatively slow progress in AI adoption and infrastructure development, pointing out the lack of aggressive funding and the nation’s reliance on foreign-built technologies.

Yes, it’s true that India has not yet attained the kind of AI advancements that the U.S. and China enjoy, but its efforts are commendable and point to a bright future. Rather than chasing rapid development at any cost, India is focusing on cultivating a homegrown ecosystem that addresses its unique socio-economic and cultural challenges while positioning itself as a trusted player in the global AI arena.

Cultivating talent for India-specific AI models

The foundation of any technological revolution lies in talent and expertise. India’s progress in AI education has been recognized globally, with Stanford ranking India among the top nations in AI education. The country has 240 universities offering AI courses and 100 universities equipped with 5G labs, ensuring that the next generation of AI talent is well-prepared for cutting-edge research and industry applications.

Initiatives like Future Skills under the IndiaAI Mission and the recent Microsoft-IndiaAI partnership aim to train 500,000 individuals by 2026. Moreover, the establishment of AI Catalysts Centers of Excellence in Tier 2 and Tier 3 cities will empower 100,000 AI innovators through hackathons and AI community-building efforts. With investments in AI education, including AI Productivity Labs in 20 National Skill Training Institutes across 10 states, India is laying the foundation for world-class AI research and development.

Moreover, India is seeing a 55% annual increase in AI-related patents, with startups developing cutting-edge innovations in healthcare, finance, and autonomous systems, proving that the country is not just training AI professionals - it is actively driving AI innovation.

India’s journey in foundational AI models is also gaining momentum. While it may have entered the Large Language Model (LLM) race later than some, it is well-positioned to deliver unique, India-centric AI solutions. Unlike foreign LLMs that often reflect Western biases, India’s indigenous AI models will be tailored to Indian languages, cultural contexts, and socio-economic realities - offering far greater relevance and impact in governance, education, healthcare, and customer service.

Building AI infrastructure: From dependence to self-reliance

While India has historically relied on foreign technologies, the tide is turning. The IndiaAI Mission’s Rs 10,372 crore investment is fueling AI research and developing a national compute grid.

India has rapidly developed a huge common computing infrastructure, surpassing global benchmarks in record time. The compute facility now houses an impressive 18,693 GPUs, significantly exceeding the initial target of 10,000 GPUs.

To put this into perspective, DeepSeek was trained on just 2,000 GPUs, while ChatGPT required 25,000 GPUs. This vast computing power will accelerate AI research, enable advanced model training, and foster ethical AI algorithm development, placing India among the global AI powerhouses.

India’s AI compute facility is also setting new affordability benchmarks:

• The cost per GPU hour is just Rs 115.85, significantly lower than the global benchmark of $2.5–$3 per hour.
• High-end computing will be available at Rs 150 per hour, with a 40% government subsidy reducing the cost to below Rs 100 per hour for common compute access.
• Competitive six-month and annual compute rate packages are available, making world-class AI infrastructure affordable for Indian innovators.

This democratized access to AI compute resources will drive innovation, lower entry barriers for startups, and ensure that India’s AI development is both inclusive and scalable.

Moreover, the private sector is also increasingly engaged, with firms like Reliance, Tata, and Infosys investing in AI research and cloud services. 

Unlocking the data goldmine

India stands at the precipice of an AI-driven revolution, thanks to its vast and diverse data ecosystem. With over 700 million internet users and generating 2.5 exabytes of data daily, the country possesses a goldmine of information that can fuel AI advancements across multiple sectors, from healthcare and education to governance and financial technology. However, tapping into this potential requires a delicate balance between data accessibility and privacy protection.

The Digital Personal Data Protection Act, 2023, is a major milestone in India's efforts to regulate data usage while ensuring innovation remains unhindered. By establishing clear guidelines for data collection, processing, and sharing, the Act safeguards user privacy while enabling AI researchers and developers to leverage India's extensive data reserves. This regulation is particularly crucial in a landscape where global AI leaders dominate data access, ensuring that India's AI future is not dictated by external forces.

Ethical AI: India as a thought leader

Far from being a passive player in AI governance, India is actively shaping global AI ethics. The country has taken leadership roles in the G20 AI Framework, UN AI Ethics Council, and OECD AI Principles discussions.

Beyond global advocacy, the IndiaAI Safety Institute is being set up to ensure safe, secure, and ethical AI development across industries. India's balanced approach - promoting AI innovation while ensuring ethical responsibility - positions it as a role model for other developing nations looking to regulate AI effectively.

Recommendations for advancing India’s AI ecosystem

India stands at the threshold of an AI-driven transformation, with a strong foundation laid by government initiatives like BharatGen and AI applications across key sectors. By fostering an innovation-friendly environment, ensuring ethical AI governance, and enabling inclusive technology deployment, India can drive scalable and impactful AI solutions tailored to its unique socio-economic needs.

Below are a few recommendations to advance India's AI ecosystem:

• The private sector holds the key to developing cutting-edge applications, AI-driven startups, and real-world deployments. AI startups and enterprises should collaborate with government-backed AI initiatives to scale solutions for national and global impact.
• Govt should expand AI startup incentives through tax breaks, grants, and dedicated AI venture funds and also develop regulatory sandboxes that allow AI startups to test their solutions in real-world conditions before full-scale deployment.
• AI frameworks must undergo rigorous audits to prevent discrimination based on gender, caste, region, or economic status.
• Policymakers must implement robust data protection standards to safeguard personal and sensitive information, ensuring AI is used responsibly.
• AI applications vary widely across industries, and a one-size-fits-all regulatory framework would be insufficient to address the unique challenges of each sector. By creating sector-specific governance bodies, India can ensure that AI is developed and deployed responsibly, aligning with both national priorities and global ethical standards.

With the right balance of policy, innovation, and responsible AI governance, India is poised to not just compete - but lead the global AI revolution.