Amidst the global competition surrounding artificial intelligence, India’s ambitions in the domain have now become impossible to ignore. While India has thus far been a modest player in the global AI race, recent developments—particularly after the advent of DeepSeek AI—show that the country is making serious strides in the direction of putting itself at par with countries like the US and China. The IndiaAI Mission, with over USD 1.2 billion in investment, is pushing India to the forefront of AI innovation. Startups across the country are gaining global attention, and corporations—major and minor—are betting big on India’s AI future.
Experts are of the opinion that India is well-positioned to lead in AI, both as a participant and a key decision-maker. India’s role as co-chair at the recent Paris AI Summit is indicative of its growing influence. Unlike the US and the UK, where AI breakthroughs are often research-driven, India’s approach is significantly different. Indian companies are focused on large-scale adoption and cost-effective solutions, which will make AI accessible to more people. The country’s talent pool is also among the advantages. With the second-largest AI workforce globally, India has no shortage of skilled engineers and researchers. Cities like Bangalore, Hyderabad, and Pune are becoming AI hubs. While India may not yet be a leader in foundational AI research, it is making major contributions in applying AI across industries like healthcare, finance, and agriculture, among others. The recent launch of the IndiaAI Mission is a strong statement regarding the country’s commitment to build AI infrastructure. India’s massive, young, and tech-savvy population is driving AI adoption. More than half of the country’s citizens are under 30, potentially serving as a huge market for AI-powered services. Companies are using AI to transform everyday experiences, from banking to retail to transportation. AI-driven consumer technology is rapidly changing business models and redefining industries. One of India’s biggest strengths in AI is its linguistic diversity. Unlike global AI models that focus primarily on English, India has a unique opportunity to build AI in multiple languages. Local AI models can be tailored to regional needs. This will help preserve cultural diversity and ensure enhanced accessibility. Funding innovative models could help Indian firms create AI tools that are locally relevant and owned by Indian companies.
Needless to say, despite this progress, there are significant challenges ahead. Many AI projects require heavy investment in infrastructure. Competing with AI powerhouses like the US and China will take time and significant resources. Experts argue that more government-led R&D is necessary, as was done in the past successful projects like UPI and Aadhaar. AI development also comes with ethical and regulatory concerns. Balancing rapid growth with responsible AI governance will be crucial. India has an opportunity to set a new global blueprint for AI development. Public-private partnerships, investments from global tech giants, and a focus on frugal innovation give the country a strong foundation. The AI race is not just about who can build the biggest models but about who can create meaningful, real-world solutions. With its vast talent pool, entrepreneurial spirit, and commitment to affordable, practical AI, India can position itself as a leader in shaping the future of artificial intelligence.