India’s AI Revolution

Syllabus: GS3/Science and Technology

Context

The government is actively shaping an AI ecosystem where computing power, GPUs, and research opportunities are accessible at an affordable cost.

It is a wide-ranging branch of computer science concerned with building smart machines capable of performing tasks that typically require human intelligence.
Artificial intelligence allows machines to model, or even improve upon, the capabilities of the human mind.

India as AI Hub: India ranks second in public generative AI projects on GitHub and houses 16% of the world’s AI talent.
AI Industry Growth: India’s AI industry is projected to reach USD 28.8 billion by 2025, growing at a CAGR of 45%.
India Ranks 1st in Global AI Skill Penetration: 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).
AI Talent Demand: India is among the top five fastest-growing AI talent hubs, alongside Singapore, Finland, Ireland, and Canada, with a projected demand for one million AI professionals by 2026.
Generative AI Ecosystem: Indian GenAI startup funding reached USD 51 million in Q2 FY2025, marking a six-fold increase.
AI Adoption Across Industries: 80% of Indian companies prioritize AI, with plans to increase tech investments, including over USD 25 million towards AI initiatives in 2025.
Workplace AI Adoption: 70% of Indian employees use AI at work in 2024, up from 50% the previous year.
AI Startup Ecosystem: India hosts over 520 tech incubators, making it the third-largest startup ecosystem globally.

Talent Shortage: Despite a growing demand, there is a gap in the availability of skilled AI professionals.
Data Privacy and Security: Concerns over data protection and regulatory challenges related to AI data usage.
Infrastructure Gaps: Inadequate infrastructure in certain regions limits the scalability and deployment of AI solutions.
High Costs: The cost of AI technology adoption can be prohibitive for small and medium-sized businesses.
Ethical Concerns: Lack of clear frameworks for addressing the ethical implications of AI, including biases in algorithms.
Limited Research and Development Funding: Insufficient investment in AI R&D compared to global leaders like the US and China.
Regulatory Uncertainty: Absence of comprehensive AI-specific policies and guidelines creates ambiguity for businesses and developers.
Access to Quality Data: Limited access to high-quality, diverse datasets needed for training AI models in various sectors.

IndiaAI Mission (2024): It has a budget of ₹10,300 crore over five years.
- A key goal is the creation of a high-end common computing facility with 18,693 GPUs.
India’s AI Models & Language Technologies: The government is facilitating the development of India’s own foundational models, including Large Language Models (LLMs) and problem-specific AI solutions tailored to Indian needs.
- BharatGen: The world’s first government-funded multimodal LLM initiative, BharatGen was launched in 2024.
- Sarvam-1 AI Model: A large language model optimised for Indian languages, Sarvam-1 has 2 billion parameters and supports ten major Indian 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.
AI Centers of Excellence: Establishing dedicated AI hubs and innovation centers across the country to support AI startups and research.
India’s Digital Public Infrastructure (DPI): Combines public funding with private sector innovation to drive digital transformation.
- Aadhaar, UPI, and DigiLocker serve as the foundation of India’s DPI.
- Intelligent solutions are being integrated into financial and governance platforms to enhance DPI.

India’s rapid AI advancements are driven by strong government initiatives, positioning it as a global AI powerhouse.
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.

Source: PIB

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