India AI Strategy 2025: Nandan Nilekani’s Smart Approach
India is heavily investing in artificial intelligence (AI) to challenge the big-league tech giants. Recently, Finance Minister Nirmala Sitharaman raised the budget for the National AI Mission from ₹173 crore to ₹2,000 crore, demonstrating huge impetus behind domestic AI models.
IT Minister Ashwini Vaishnaw revealed that six Indian startups are currently working on creating an AI foundation model, which will be completed in the next eight to ten months. In this regard, India was able to procure about 18,600 advanced GPUs, powered by Nvidia’s Hopper graphics chips. Alternatively, China’s DeepSeek startup made headlines recently when it developed its inexpensive R1 model, creating a debate lingering around whether India ought to develop its own large language models (LLMs) or look for another route.
Previous Drawbacks in Underlying Tech
India has previously been in the weakest position while developing local technologies.
- Bharat OS (BOS) failed due to complaints about poor adoption.
- Semiconductor manufacturing never took off despite all the incentives.
- Indian reproductions of international applications (such as TikTok clones) burned millions in risk money without truly being able to attain profits.
These failures speak against building AI models from scratch; they might not be the best way out.
Nandan Nilekani’s AI Method: A More Intelligent Tactic
According to Infosys co-founder Nandan Nilekani, India must not engage in the competition over LLMs. Instead, he proposes:
1. Usage of global LLMs to create synthetic data
2. Development of small language models (SLMs) for applications unique to India
3. Tracking of AI models using regional data
Rather than draining away billions, India can just focus on deploying AI applications and their real impact.
Artificial Intelligence and the Problem of Automation in Employment
AI is changing employment all over the world. Automation could take away 69% of jobs in India, according to a World Bank report. More recent findings indicate:
- AI has caused jobs in the retail domain to drop by 25% in the U.S.
- Goldman Sachs is employing AI to finalize IPO documentation in just minutes.
To avert widespread job losses, India should consider a skill training initiative in AI along the lines of the IT industry boom of the 1990s.
India’s Edge in Data
Due to heavy data generation, India is poised to take the lead in the adoption of AI:
- Reliance Jio produces 16 exabytes of data every year.
- India is now one of the largest consumers of data globally.
Mukesh Ambani’s partnership with Nvidia will provide the much-needed impetus for a robust AI infrastructure in India.
Final Thoughts
India should really focus on training in AI, applications, and small language models, rather than starting on a journey to develop LLMs. By taking the right steps, India can emerge as the world leader in AI, instead of being just another player in the LLM race.
The report retains its significance as yet another recent news updates that will shape India’s AI future.
