Is India Among the Leading AI Nations?
Synopsis
Key Takeaways
- India is positioned among the top AI nations.
- The country is focusing on all five layers of AI architecture.
- ROI in AI is driven by enterprise-level implementations.
- India is set to be the largest supplier of AI services globally.
- Public-private partnerships are key to expanding access to AI resources.
Davos, Jan 21 (NationPress) India is undoubtedly positioned in the top tier of AI nations, according to Union Minister for Electronics and IT, Ashwini Vaishnaw. He stated that the architecture of Artificial Intelligence consists of five essential layers: application, model, chip, infrastructure, and energy, and India is making strides in all these areas.
During a panel discussion at the World Economic Forum (WEF) annual meeting in Davos, the minister detailed India's commitment to the wide-scale adoption of AI, focusing on economic sustainability and techno-legal governance.
The session was led by Ian Bremmer, President and Founder of the Eurasia Group, with panelists including Brad Smith from Microsoft, Kristalina Georgieva from the IMF, and Khalid Al-Falih from Saudi Arabia's Ministry of Investment.
“In the application sector, India is set to become the leading supplier of services globally,” he remarked, highlighting that the returns on investment (ROI) in AI stem from enterprise-level implementations and productivity improvements rather than merely from developing large models.
Vaishnaw pointed out that around 95% of AI applications can be managed using models with 20-50 billion parameters, many of which are already operational in India.
He cautioned against confusing geopolitical strength with the ownership of massive AI models, noting that such models can be deactivated and could potentially cause financial strain for their creators.
“The financial advantages of what I term the fifth industrial revolution will arise from ROI — implementing the most cost-effective solutions for maximum returns,” he explained.
The minister stressed that successful AI implementation increasingly depends on CPUs, compact models, and emerging custom silicon, which reduces reliance on any single nation and challenges the idea of AI supremacy through sheer scale.
Identifying the availability of GPUs as a critical limitation, he stated that India has embraced a public-private partnership model, enlisting around 38,000 GPUs as a common national computing resource. This initiative, backed by the government, offers subsidized access to students, researchers, startups, and innovators at approximately one-third of the global pricing.