India’s pursuit of becoming a global AI hub has gained renewed urgency with the emergence of China’s DeepSeek, a low-cost AI model that threatens to disrupt the global technology landscape. For India, this development serves as both an inspiration and a warning. It should inspire India to speed up its AI development efforts, leveraging its talent and resources to build competitive AI models. If India drags its feet, it risks falling irreversibly behind other global leaders in AI innovation and development.

While the Centre has been discussing the IndiaAI Mission since March 2024, progress has been slow. The Ministry of Electronics and Information Technology’s latest statements regarding GPU (graphics processing unit) procurement, foundational model development, and a common compute facility are encouraging. The selection of 10 companies to supply GPUs and the plan to launch a common compute facility are positive signs. The subsidised access to GPUs at ₹150 per hour for high-end and ₹115.85 per hour for lower-end, compared to the global rate of $2.5-$3 per hour (approximately ₹200-₹250), is a welcome move. The 40 per cent subsidy makes it more accessible for start-ups and researchers. Hosting DeepSeek on Indian servers to address data privacy concerns is a prudent measure. But translating these plans into tangible outcomes is crucial. The four to eight month timeline for developing the foundational model, while realistic, needs to be adhered to rigorously.

These developments offer an opportunity for the Indian start-up ecosystem to develop cutting-edge AI solutions. The measures announced by the Centre combined with the availability of an open-source platform such as DeepSeek on local servers significantly lower the entry barriers for AI development. Large IT services companies such as TCS and Infosys must move beyond a service-export model to one that prioritises intelligence and innovation. Shifting the mindset from low-cost outsourcing to developing high-value AI language models is critical to creating globally recognised AI solutions. US, China and EU are investing heavily in AI research, development, and deployment, recognising the profound impact AI is likely to have on national security, economic growth, and technological leadership.

India must build a robust AI ecosystem and foster cross-sector collaboration to enable local innovation that meets global standards. It has a vast pool of skilled professionals in engineering, data science, and software development. They can be upskilled to take on AI projects. The expansion of affordable broadband across urban and rural areas has created a connected digital landscape, ensuring that AI innovations can reach and impact all parts of society. With billions of dollars being invested in data centres, India’s computing power is expected to grow exponentially — a critical component for advancing AI. DeepSeek should serve as a wake-up call for India. With the right steps in place, India can become a global AI powerhouse.

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