India is pushing to catch up in artificial intelligence (AI) development, but experts warn that it may be trailing behind benchmarks set by the US and China. The global quest for AI supremacy gained momentum with the emergence of advanced models like China's DeepSeek, which has made significant impacts on the tech landscape by drastically reducing generative AI application costs.
Two years post-ChatGPT, India lacks its own foundational language model similar to DeepSeek, which is crucial for powering AI applications such as chatbots. Although the Indian government is optimistic about developing a homegrown equivalent within ten months by providing high-performance chips to startups and researchers, concerns about the country's preparedness loom large.
Leaders from major AI firms, including OpenAI and Microsoft, have recently acknowledged India's talent pool and potential. OpenAI's CEO, Sam Altman, has emphasized that India can play a vital role in the evolving AI landscape. Nevertheless, analysts believe that despite a flourishing startup ecosystem—200 organizations focused on generative AI—India is missing structural reforms in education and policy necessary to bolster its innovation framework.
China and the US have gained significant headway with substantial investments in research and military applications linked to AI. Figures from the Stanford AI Vibrancy Index reflect that while India ranks in the top five globally based on metrics such as patents and funding, it holds less than half a percent of the world's AI patents. In 2023, India's startups received a fraction of the private investment seen by competitors in the US and China.
Government-funded AI initiatives in India total approximately $1 billion, vastly overshadowed by the US's $500 billion Stargate program and China's $137 billion AI plans for 2030. Although India's city of Bengaluru houses a $200 billion IT outsourcing industry brimming with talent, the transition from service-based roles to the foundational development of consumer AI technologies remains sluggish.
One critical hindrance identified is the lack of high-quality, India-specific datasets for training models in regional languages, causing further complications in advancing AI solutions tailored to the nation's diverse linguistic landscape. Furthermore, as identified by studies, an increasing number of AI professionals from India are exploring opportunities abroad, often attracted by better research environments that encourage foundational innovations.
Experts assert that a collaborative approach similar to the successful digital payment revolution, driven by government, industry, and academia, could be instrumental in advancing India’s AI objectives. Nevertheless, many industry observers remain skeptical regarding whether emergent startups and government initiatives can deliver substantial breakthroughs within the ambitious timelines set by officials.
Though the immediate outlook may appear challenging, experts suggest that India could innovate atop existing open-source platforms like DeepSeek. Over the long term, fostering a foundational AI model remains essential for the nation's strategic autonomy and reducing reliance on imports amidst global technological tensions. To accomplish this, experts emphasize that advancements in computational hardware and semiconductor manufacturing must materialize for India to effectively close the gap with leading nations in the AI arena.
