Can India Finally Take the Lead in the Global AI Race?

When it comes to AI supremacy, headlines are dominated by the US and China with OpenAI, Google DeepMind, Baidu, Alibaba, and other giants leading the charge. But India, with its massive tech workforce, thriving startups, and digital-first economy, hasn’t taken the lead, yet. So what’s holding India back, and why is that beginning to shift?


World-Class Talent, Emerging Ecosystem

India produces over 1.5 million engineers annually, many of whom fuel global AI advancements at Big Tech. Institutions like IIT Madras and IIIT Hyderabad are launching AI research hubs that start to rival their Western peers.


Signs That Change Is Brewing

1. Deep-Tech Investment Is Growing
VCs are increasingly interested in AI-first startups beyond fintech and e‑commerce.

2. New Research Hotspots
IIT Madras’ Robert Bosch Centre and IIIT Hyderabad’s Kohli Center are turning academia into innovation hubs.

3. Brain Circulation Replacing Drain
Instead of just exporting talent, India is benefiting from remote work, global investment, and returning diaspora expertise.


Rising Indian AI Stars

A new wave of Indian-founded AI startups shows what’s possible when talent meets opportunity:

  • InVideo (Mumbai): Generative‑AI video creator 7M+ users, valued at $300M+
  • Yellow.ai (Bangalore): Conversational AI for brands like Domino’s & Sephora $102M funding
  • Arya.ai: Banking/insurance AI solutions smart underwriting, automation
  • Entropik: Emotion AI with facial recognition, eye-tracking, EEG $25M funding

India’s Untapped AI Potential

  • NASSCOM projects a $17B AI market by 2027, growing at 25% CAGR
  • Strategic sectors: healthcare, agri-tech, education, logistics
  • Government backing: Bhashini (multilingual AI platform), IndiaAI (national AI mission)

What India Needs to True AI Leadership

To shift from potential to power, India must align policy, funding, and infrastructure:

  • DARPA‑style AI R&D: Bold public programs for long-term innovation
  • Deep‑tech incentives: Grants, patents, tax breaks for foundational models
  • Localized datasets: AI trained on Indian languages, dialects, and cultural contexts
  • Industry‑academia bridges: Co-funded innovation centers, shared labs

India’s AI Wave Has Begun

India is no longer a mere observer in AI, it has the talent, scale, and drive to lead. What’s left is sustained execution and collaboration. If key stakeholders government, industry, research unite, India could soon shift from using global AI to building it.

Leave a Reply

Scroll to Top