Why in News?

Recently , China’s open-source AI model DeepSeek has created a shockwave in global tech and economic system.

What are the key developments in India’s AI computing infrastructure?

• India’s AI infrastructure - India is rapidly building a strong AI computing and semiconductor infrastructure to support its growing digital economy.
• India AI Mission - IndiaAI Mission was launched in 2024, with Rs. 10,300 crore allocation over five years to strengthen AI capabilities.
• High-end common computing facility -  Under the AI mission, this  facility equipped with 18,693 Graphics Processing Units (GPUs), is developed
• It will be one of the most extensive AI compute infrastructures globally and is nearly nine times that of the open-source AI model DeepSeek and about two-thirds of what ChatGPT operates on.

How  is open data advancing AI?

• IndiaAI Datasets Platform - The platform will enable Indian startups and researchers to access a unified repository of high-quality, anonymised datasets, reducing barriers to AI innovation.
• Boosting AI Model Accuracy - By providing large-scale, non-personal datasets, the initiative will help reduce biases and improve the reliability of AI applications across domains such as agriculture, weather forecasting, and traffic management.
• Centres of Excellence - The government has established three AI Centres of Excellence (CoE) in Healthcare, Agriculture, and Sustainable Cities in New Delhi.
• Skilling for AI-Driven Industries - Plans are in place for five National Centres of Excellence for Skilling, to equip youth with industry-relevant expertise.

What are India’s indigenous AI Models and language technologies?

• India’s Foundational Large Language Models - IndiaAI has launched an initiative to develop indigenous foundational AI models, including LLMs and Small Language Models (SLMs).
• Digital India BHASHINI - An AI-led language translation platform designed to enable easy access to the internet and digital services in Indian languages , including voice-based access.
• BharatGen - The world’s first government-funded multimodal LLM initiative, BharatGen was launched in 2024 in Delhi  to enhance public service delivery and citizen engagement.
• Sarvam-1 AI Model – It is a large language model optimised for Indian languages with 2 billion parameters and supports ten major Indian languages.
• It is designed for applications such as language translation, text summarisation, and content generation.
• Chitralekha - An open-source video transcreation platform developed by AI4Bhārat to generate and edit audio transcripts in various Indic languages.
• Hanooman’s Everest 1.0 -  A multilingual AI system developed by SML, Everest 1.0 supports 35 Indian languages, with plans to expand to 90.

How does AI improve Digital Public Infrastructure (DPI)?

• India’s DPI – It has redefined digital innovation by combining public funding with private sector-led innovation.
• Platforms like Aadhaar, UPI, and DigiLocker serve as the foundation, while private entities build application-specific solutions on top of them.
• Integrating AI and DPI - DPI model is now being enhanced with AI, integrating intelligent solutions into financial and governance platforms.
• Applications - For Mahakumbh 2025, AI-driven DPI solutions played a crucial role in managing the world’s largest human gathering.
  • Railway crowd management - AI-powered tools monitored real-time railway passenger movement to optimise crowd dispersal in Prayagraj.
  • Kumbh Sah’AI’yak  - It is aBhashini-powered Kumbh chatbot enabled voice-based lost-and-found services, real-time translation, and multilingual assistance.

What is the status of  AI Talent & Workforce Development?

• Development of Global Capability Center - India is adding one GCC every week, reinforcing its status as a preferred destination for global R&D and technological development.
• National Education Policy (NEP) 2020 - University curriculum is revamped to include AI, 5G, and semiconductor design, aligning with the National Education Policy (NEP) 2020.
• AI Education - Under the IndiaAI Future Skills initiative, AI education is being expanded across undergraduate, postgraduate, and Ph.D. programs.
• AI Talent Pipeline - To enhance accessibility, Data and AI Labs are being established in Tier 2 and Tier 3 cities, with a model IndiaAI Data Lab already set up at NIELIT Delhi.

According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8, ahead of the US (2.2) and Germany (1.9).

• India AI developers - India has emerged as the fastest-growing developer population globally and is home to 16% of the world’s AI talent.

India ranks second in public generative AI projects on GitHub.

• AI Talent Hubs - The AI-skilled workforce has seen a 14-fold increase from 2016 to 2023, making India one of the top five fastest-growing AI talent hubs, alongside Singapore, Finland, Ireland, and Canada.

What is the status of India’sm AI adoption and industry growth?

• India’s AI  Growth - The India Skills Report 2024 by Wheebox forecasts that India’s AI industry will reach USD 28.8 billion by 2025, with a CAGR of 45%.
• Businesses Prioritising AI Investments - 80% of Indian companies consider AI a core strategic priority, surpassing the global average of 75%.
• GenAI Startup Funding -  According to NASSCOM report , Indian GenAI startup funding surged over six times quarter-on-quarter, reaching USD 51 million in Q2FY2025.
• AI Transforming Workplaces - Seven in 10 Indian employees used AI at work in 2024, up from five in 10 a year earlier, showcasing AI’s rapid integration into workplaces.
• AI Empowering Small & Medium Businesses (SMBs) - AI-driven technologies, such as autonomous agents, are helping SMBs scale efficiently, personalise customer experiences, and optimise operations.

According to Salesforce, 78% of Indian SMBs using AI reported revenue growth, while 93% stated AI has contributed to increased revenues.

• Rapid Expansion of India’s AI Economy - As per the BCG-NASSCOM Report 2024, India’s AI market is projected to grow at a CAGR of 25-35%, reinforcing its potential for innovation and job creation.
• While AI automates routine tasks, it is simultaneously generating new opportunities in data science, machine learning, and AI-driven applications.
• AI Startup Support Ecosystem - India hosts 520+ tech incubators and accelerators, ranking third globally in active programs.

How India is regulating AI?

• Pragmatic AI Regulation – India balances innovation and accountability by steering clear of overregulation that could stifle growth and unchecked market-driven governance that may create monopolies.
• AI-driven safeguards - Instead of relying solely on legislation, India is investing top universities and IITs to develop solutions for deep fakes, privacy risks, and cybersecurity threats.
• Techno-legal approach – It ensures AI remains a force for inclusive growth, fostering an ecosystem where innovation thrives while ethical concerns are proactively addressed.

What lies ahead?

• India's rapid advancements in artificial intelligence, underpinned by strategic government initiatives, have positioned the country as a global AI powerhouse.
• By expanding AI compute infrastructure, fostering indigenous AI models, enhancing digital public infrastructure, and investing in talent development, India is creating an inclusive and innovation-driven ecosystem.
• Emphasis on open data, affordable access to high-performance computing, and AI-driven solutions tailored to local needs ensures that the benefits of AI reach businesses, researchers, and citizens alike.
• As AI adoption accelerates across industries, India's proactive approach is not only strengthening its digital economy but also paving the way for self-reliance in critical technologies.
• With a clear vision for the future, India is set to become a leader in AI innovation, shaping the global AI landscape in the years to come.

Reference

PIB | India’s AI Revolution