India must put more Human Intelligence in creating its own AI models
Government has launched the IndiaAI Mission, backed by $1.25 billion in funding, to expand AI infrastructure and boost public-sector AI applications. India’s AI market is projected to reach $17 billion by 2027, supported by its $250 billion IT industry and a workforce of nearly 5 million programmers.
Major Indian corporations, including Tata Consultancy Services (TCS) and Reliance Industries, are heavily investing in AI-driven projects, with a focus on generative AI and large language models (LLMs).
India is making a concerted effort to build its own artificial intelligence (AI) ecosystem, aiming to reduce reliance on foreign technology and establish digital sovereignty. Tata Sons Chairman N. Chandrasekaran has warned of the risks of “digital colonialism,” where India’s data, culture, and languages could be shaped by AI models developed elsewhere without local socio-cultural context.
To counter this, he has outlined a framework for AI sovereignty that includes technological infrastructure, data ownership, skilled talent, and strong governance policies.
Despite its growing tech sector, India lags behind leading AI nations such as the United States and China. The Sustainable Infrastructure and Digital Economy (SIDE) 2025 Report ranks India 11th in AI research and 16th in AI infrastructure, highlighting the need for greater investment and policy support. The country faces challenges in terms of computing power, regulatory clarity, and research capabilities.
To address these gaps, the Government has launched the IndiaAI Mission, backed by $1.25 billion in funding, to expand AI infrastructure and boost public-sector AI applications. India’s AI market is projected to reach $17 billion by 2027, supported by its $250 billion IT industry and a workforce of nearly 5 million programmers. Major Indian corporations, including Tata Consultancy Services (TCS) and Reliance Industries, are heavily investing in AI-driven projects, with a focus on generative AI and large language models (LLMs).
Meanwhile, global tech giants continue to advance AI at a rapid pace. OpenAI has introduced GPT-4.5 (codenamed Orion), an upgraded model designed to enhance coding, problem-solving, and conversational abilities while reducing misinformation. The model is currently in limited testing, with OpenAI emphasizing that it is not a breakthrough AI system but a significant step forward in refining AI-generated responses. Deployment challenges remain due to global GPU shortages, limiting the model’s widespread adoption.
Other major players are also ramping up their AI efforts. Amazon is set to launch AI-powered Alexa devices by Fall 2025 in an effort to compete with OpenAI’s chatbot ecosystem. Tencent, one of China’s leading tech firms, is aggressively investing in AI research to strengthen its position in the global market.
For India to compete at this level, it must accelerate the development of its AI ecosystem by improving digital infrastructure, fostering innovation, and formulating policies that encourage responsible AI growth. While the country has made notable progress, sustained efforts in AI research, workforce training, and industry partnerships will be essential to positioning India as a global AI leader.
As AI becomes increasingly central to economic growth and national security, India must act swiftly to build a self-reliant AI ecosystem that aligns with its strategic and technological ambitions.
AI for India
• India’s push for AI independence aims to protect its data, language, and culture from foreign dominance.
• Government-backed initiatives, such as the IndiaAI Mission, are critical to strengthening the country’s AI infrastructure.
• The global AI race is heating up, with OpenAI, Amazon, and Tencent making significant strides.
• India’s AI market is expanding, but further investment and policy refinement are needed to compete with global leaders.
