Source: The post India can lead AI with innovation and strategy has been created, based on the article “Al race: What India should do” published in “Indian Express” on 8th February 2025.
UPSC Syllabus Topic: GS Paper3-Awareness in the fields of IT, Space, Computers.
Context: The article discusses India’s potential to lead in AI. It highlights India’s strengths in AI talent, startups, and digital infrastructure. It stresses the need for AI hardware independence, open-source models, and global leadership. It calls for urgent innovation and policy changes.
For detailed information on India’s Strategy for AI Leadership read this article here
Why is AI important for India?
- Strong AI Workforce: India has 4,20,000 AI professionals, more than many countries’ entire tech sectors.
- High AI Adoption: 92% of Indian enterprises use AI, the highest in the world.
- Growing AI Market: India’s AI market is worth $17 billion.
- Leading AI Startups: Sarvam AI (Indian languages), Niramai (breast cancer detection), and BHASHINI (22+ language translations) are driving innovation.
- Digital Growth: 49% of global real-time payments come from India, with $568 billion in monthly UPI transactions.
- Government Support: The IndiaAI Mission aims for AI leadership.
How has India built a strong digital foundation?
India has transformed its digital landscape in the last decade.
- Financial Inclusion: Bank account penetration rose from 30% to 80% in seven years, while costs dropped from $23 to 15 cents per account.
- Digital Payments: India handles 49% of global real-time payments, with $568 billion in monthly UPI transactions.
- Startups & Innovation: India has 108 unicorns, using DPI to develop fintech, health-tech, and commerce platforms.
- Crisis Management: During COVID-19, India transferred $4.5 billion to 160 million people instantly.
What are the global AI trends?
- US Investment in AI & Semiconductors: The Stargate initiative commits billions of dollars to AI and semiconductor research. It aims to create 1,00,000 jobs and secure US dominance in AI.
- China’s Cost-Effective AI Development: DeepSeek built an open-source AI model with just 200 employees and $10 million, competing with OpenAI, which has 4,500 employees and $6.6 billion in funding.
- US AI Hardware Restrictions: The AI diffusion rule limits advanced GPU exports to India, placing it under Tier II restrictions despite being a Quad partner.
What should India do to lead AI?
- Build cost-effective AI solutions like ISRO, maximizing output with fewer resources.
- Promote open-source AI to foster innovation, like DeepSeek’s low-cost AI success.
- Develop sovereign AI models using Indian data to avoid biases.
- Strengthen multilingual AI for India’s 22+ official languages, like BHASHINI.
- Gain Tier I AI status to remove US-imposed GPU restrictions.
- Invest in AI hardware to ensure self-reliance in computing power.
- Act urgently with a mission-driven approach, leveraging India’s 4,20,000 AI professionals and 92% enterprise adoption rate.
Question for practice:
Discuss how India can achieve AI leadership by leveraging its strengths and addressing key challenges.
