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India's AI Revolution: Big Strides, Bigger Gaps – Here's What You Must Know!
India's AI Revolution: Big Strides, Bigger Gaps – Here's What You Must Know!

April 15, 2025

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India is buzzing with AI excitement. The job market is flooded with AI roles, talent is upskilling like never before, and new AI startups are being launched every week. But here’s a more profound question:

| Is India’s AI growth as solid as it seems—or are there gaps we’re overlooking?

A recent deep dive from Stanford’s AI Index 2024, as reported in The Economic Times, sheds light on India’s place in the global AI landscape. And while there's plenty to cheer about, there are also critical insights and blind spots that we as a nation must act on—immediately.

I’ve seen AI evolve from buzzword to business backbone. Let me break down the data, reflect on what it means for us, and share how we’re helping bridge the gap.

India Tops AI Skill Penetration—But What Next?

In terms of AI skill penetration, India leads the world. We scored 1.4x relative to the global average, ahead of developed countries like Germany (1.12), France (1.13), the UK (1.32), and even the US (1.36).

| That means more Indians are learning AI per capita than citizens of any other nation.

But here’s the paradox: India’s AI output—research, products, and patents—is not yet matching this talent boom.

Many AI-skilled professionals are either underutilized or seeking opportunities abroad. This gap between skills and innovation must be closed with a strong national framework that connects education, industry, and R&D.
 

India’s AI Investment: Growing, Yet Underpowered

According to the same report, India accounted for only 3% of global private AI investment in 2023. Compare that to:

  • US: 35%
  • China: 12%
  • UK: 6%
  • Israel: 5%

India had just 9 major funding events between $500M and $1B, compared to the US’s 113.

| “This signals an urgent need to increase investor confidence and channel funds into high-impact, scalable AI projects.”

The good news? Indian AI startups raised over $223 million in 2023 through 480 disclosed deals. But we must move beyond volume to value—larger funding rounds, deeper technological bets, and long-term strategic capital.

R&D and Publications: India’s Silent Struggle

Despite our surge in AI talent, India’s share of global AI research publications is lower than expected. Countries like China and the US continue to dominate, and it’s not just quantity—it’s quality and impact.

What’s missing?

  • Stronger industry-academia collaboration
     
  • Incentives for publishing high-impact research
     
  • Patent-friendly government policies
     
  • Dedicated AI R&D zones and labs

| “We need a system where AI engineers and researchers feel empowered not just to learn but to invent.”

Global Comparison: Asia’s Optimism vs India’s Readiness

The Stanford survey revealed that Asian countries like South Korea and Singapore are showing more AI optimism than the US and Europe. China leads, with 78% of surveyed experts believing AI will bring economic benefits.

India’s optimism is visible—but is it translating into readiness?

The challenge lies in scaling AI applications from pilot projects to national-level solutions. Countries like Singapore have launched AI Governance frameworks and city-level AI deployments. We need to act fast, or we risk being left behind despite the talent advantage.

Recommendations: What India Can Do Right Now

From where I stand, here's how India can move from AI potential to AI power:

1. National AI Infrastructure

  • Establish AI superclouds and compute power grants for AI startups.
  • Build open-access datasets for Indian languages, healthcare, agriculture.

2. Decentralize AI Innovation

  • Don’t keep AI restricted to Tier-1 cities.
  • Create AI innovation hubs in Tier-2 and Tier-3 cities with incubators.

3. Support Applied AI for MSMEs

  • Offer subsidies and tools for AI adoption in small businesses.
  • Launch “AI for Bharat” initiatives focused on logistics, agri-tech, and rural finance.

4. Regulate Smartly

  • Establish clear AI governance frameworks that encourage innovation while safeguarding ethics, privacy, and fairness.

| “India doesn’t lack talent or ambition. What we need now is policy vision, industry collaboration, and investor boldness.”

Final Word: The Time Is Now

AI is not the future. It’s already shaping the present. And India has every ingredient to lead globally—if we align our policies, priorities, and platforms.

| As an industry leader, I call on founders, educators, investors, and policymakers to treat AI as a national mission.

Let’s make sure we don't just learn AI but lead it.


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Anuj Bairathi
Founder & CEO

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