The AI
Impact Summit 2026, hosted for the first time by a developing country in New
Delhi on February 18-19, concluded with 88 countries and international
organisations adopting the New Delhi Declaration on AI Impact, marking a
significant milestone in global cooperation on artificial intelligence. Guided
by the age-old Indian principle, “Sarvajan Hitaya, Sarvajan
Sukhaya” (Welfare of all, happiness of all), this non-binding landmark agreement proclaims
that the benefits of AI are equitably shared across humanity. It is hailed as
an attempt to democratise AI-access across humanity. It’s more of an ambitious
declaration, perhaps.
Despite successfully hosting a
global summit with the participation of top-notch industry leaders and
Presidents and Prime Ministers of many countries, “India is not an AI
superpower” is what the Economist paper has to say on India’s AI claim.
Why, this is not the first time that someone slighted our claim about AI
capabilities. In the recently concluded Davos meet, the Chief of the IMF almost
dismissed India as a second-rate AI power. Ashwini Vaishnaw, our IT minister,
sitting in the same panel, had, of course, brushed aside the IMF Chief’s
comments by saying, “I don't know what the IMF's criteria are, but Stanford University ranks India third in the world in
AI penetration, AI preparedness, and AI talent. It ranks second in AI talent.
Therefore, your second-tier classification is incorrect. India is clearly in
the first group”.
Continuing his rebuttal, Vaishnaw
put forth some interesting arguments: AI leadership is not defined solely by
building large models, for 95% of AI work can be done with 20-50 billion
parameter models. It is in this arena that India has developed a “bouquet” for
sectoral deployment. He further stated that India is building capabilities
across all five layers of AI architecture, viz., application, model, chip,
infrastructure, and energy. Indeed, he claimed that India would become the
world's largest supplier of AI services at the application layer.
Amidst this conflicting scenario,
let us first take a look at the ground realities of India’s adoption of AI
technology: One survey report indicates that 90% of Indian firms are using AI compared
to 62% globally. India is said to be leading the world in voice-driven AI. Sarvam
AI is one such company that has come into the limelight at the summit. Adopting
open-source models trained on local voice and language data, the company created
Sarvam 1, a suite of open-source foundational models and AI tools meant
for Indian languages. They have also launched Shuka 1.0, India’s first
open-source Audio LM. This initiative can be described as part of India’s
sovereign AI effort that aims to reduce its reliance on foreign AI systems. Seeing
Sarvam developed local AI models, Google CEO Sundar Pichai, said: “… I just
don’t see any impediments to that, and I think it is very, very well
positioned”.
This is what, indeed, the
political leaders of India and officials from its government agencies attempted
to highlight at the summit. Abhishek Singh from India AI, a government agency,
said, “We are not trying to burn millions of GPUs building artificial general
intelligence,” but are aiming at becoming the world’s “adoption capital”. In a
similar vein, Rudra Chaudhuri, Vice President of Observer Research Foundation
(ORF), who works closely with India’s growing innovation ecosystem, commented
that “India’s approach is bottom up. It’s not the model, it’s the use case that
you have to build around.”
Several Indian startups have
attracted global interest and investment in areas such as cloud computing and
customer service. Many others are focusing on applying AI to urgent problems of
the developing world. Supernova AI is one such example: This app makes English
tuition affordable to all Indians who lack access to good schools and want to
master their English speaking skills. It is indeed growing at a clip.
Similarly, telemedicine and AI triage chatbots are expanding rapidly. It is
thus evident from the foregoing that India is focusing more on applications.
That said, given the way in which
frontier models are galloping along, one may wonder whether such indigenous
apps will remain effective in the long run. Secondly, the cost of producing
such apps may also become a veritable question. But Chaudhuri of ORF argues
that many such uses will not require expensive “bleeding-edge models”. In other
words, what all these developments point to is: Indian companies will have to
learn how to apply AI frugally.
That is one side of India’s AI story.
The other side is the abundance of enthusiastic and talented techies who are
eager to work out how AI can be harnessed, as is evident from the presence of a
quarter of a million attendees at the summit. Secondly, massive investments of
around $200 bn are in the pipeline from Google, Amazon Web Services, Adani and
Reliance, etc., to expand data centres’ capacity —the infrastructure meant to
help India become an AI superpower—in the country from 1.5 GW in 2025 to 8-10
GW by 2030. Similarly, Microsoft has plans to invest about $20 bn in AI
infrastructure in the country over the next few years. Of course, it is not
clear whether India will benefit from these data centres, though Jensen Huang
of Nvidia argues that they could be as good for India’s economy as the
internet.
All these developments, plus a
vast STEM talent pool of about 15% of the global AI workforce, are likely to
augur well for India to become a member of the top-three global AI superpower
group. Nevertheless, to reduce the gap with the US and China, India must
increase its financial commitment for R&D, infrastructure development and
talent retention. As Sundar Pichai, CEO of Google and Alphabet, who
participated in the summit, said in an interview with the Economic Times, “…
the scale of the opportunity it [India] has with AI is immense.”
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