In a keynote session, Mr. Romal Shetty, in conversation with Mr. Amitabh Kant, India’s G20 Sherpa, delved into India’s AI strategy and the actions required to establish the country as a global hub of AI excellence. So, what must India do to reshape its AI ecosystem? Let’s take a closer look.
Importance of Building AI Computing Infrastructure
Mr. Amitabh Kant highlighted that AI cannot thrive on software alone; a strong hardware ecosystem is crucial. He pointed out that AI systems today heavily rely on imported chips. For long-term success, India needs to establish domestic chip production capabilities.
“The government has already initiated the Semiconductor Mission, investing ₹76,000 crore to promote semiconductor manufacturing.”
Several companies are already setting up facilities in India, which is a step in the right direction. With increasing geopolitical tensions, especially around AI chips, achieving strategic chip independence is essential.
Building this capability, however, comes with its own challenges—one of the most pressing being energy consumption. Mr. Romal Shetty highlighted that Gen AI emissions could reach 14%, underscoring the importance of optimizing resource utilization to ensure sustainable growth in this sector.
Focus on Talent and R&D to Establish AI Leadership
The future of AI in India depends largely on its ability to build a skilled tech workforce. Mr. Romal Shetty believes that in the long-term Quantum and AI are going to dominate. While India has a massive pool of engineering talent, Mr. Amitabh Kant highlighted the importance of restructuring engineering education to focus on emerging technologies like AI and Quantum Computing. He believes that AI should be taught as a foundational skill across disciplines, starting at the undergraduate level.
Importance of Building AI Computing Infrastructure
Mr. Amitabh Kant highlighted that AI cannot thrive on software alone; a strong hardware ecosystem is crucial. He pointed out that AI systems today heavily rely on imported chips. For long-term success, India needs to establish domestic chip production capabilities.
“The government has already initiated the Semiconductor Mission, investing ₹76,000 crore to promote semiconductor manufacturing.”
Several companies are already setting up facilities in India, which is a step in the right direction. With increasing geopolitical tensions, especially around AI chips, achieving strategic chip independence is essential.
Building this capability, however, comes with its own challenges—one of the most pressing being energy consumption. Mr. Romal Shetty highlighted that Gen AI emissions could reach 14%, underscoring the importance of optimizing resource utilization to ensure sustainable growth in this sector.
Focus on Talent and R&D to Establish AI Leadership
The future of AI in India depends largely on its ability to build a skilled tech workforce. Mr. Romal Shetty believes that in the long-term Quantum and AI are going to dominate. While India has a massive pool of engineering talent, Mr. Amitabh Kant highlighted the importance of restructuring engineering education to focus on emerging technologies like AI and Quantum Computing. He believes that AI should be taught as a foundational skill across disciplines, starting at the undergraduate level.
“In the short term, the private sector must play a major role in driving AI innovation. Businesses across industries should invest in AI adoption to ensure transformation. In the long run, India must ramp up its R&D investments.”
India’s private sector invests just 0.6% of its GDP in R&D—too low to drive deep tech breakthroughs. To compete globally, companies must ramp up investment, particularly in AI and Quantum Computing.
Investment in R&D can Help Creating Jobs
Mr. Romal Shetty expressed concern that India’s research and development (R&D) efforts are currently insufficient across various sectors, emphasizing that R&D is a key value driver and more investment is essential. Mr. Amitabh Kant concurred, highlighting the need for India’s economy to transition from a service-based model to one that is manufacturing-driven. To foster growth in manufacturing, particularly in areas such as renewable energy and electric mobility, significant investment in R&D is crucial.
“This shift is essential not just for economic growth but for creating high-quality jobs.”
While many large companies are already making significant strides in R&D, India needs to scale this up. Investing in R&D across critical industries like solar power, wind energy, and electric mobility will allow India to stay competitive as new technologies rapidly emerge.
India’s Startup Ecosystem can boost AI innovations
India’s startup ecosystem, with 155,000 startups and 140 unicorns, is a key driver of AI growth. Mr. Amitabh Kant highlighted India’s vast data resources as a major advantage and suggested that making anonymized data accessible to startups and researchers could fuel innovation.
Rather than building everything itself, he emphasized that the government should act as a facilitator. India’s success with digital innovations like UPI proves that collaboration between startups and policymakers can drive major breakthroughs. With a talent pool of 420,000 engineers, India has the potential to lead in AI with cost-effective, scalable solutions.
Open-Source Systems Are Key to India’s AI Growth
The key to achieving AI-driven transformation is access to open-source tools and data. These resources enable the scalability needed to implement solutions across a diverse and vast country like India.
One of India’s most innovative approaches is its Digital Public Infrastructure (DPI), which has been built on open-source principles. The goal of DPI is to ensure that citizens’ data is kept sovereign but can be used for specific transactions. This contrasts with proprietary models used by tech giants like Google and Meta, where data ownership is not as clear. India’s achievements in DPI are globally recognised.
“The direct bank transfers to 800 million people during the COVID-19 pandemic and the successful vaccination tracking system showed how technology can drive real-world change.”
Mr. Amitabh Kant pointed to the success of the Aspirational Districts Program, which leveraged data and AI to improve outcomes in health, education, and nutrition across India’s most backward districts. The initiative showed how data could be used for improvement when paired with good governance. He also emphasized on building a thriving end to end AI ecosystem and not just the application layer.
Building Trust and Fostering Innovation in AI
Mr. Romal Shetty emphasized the importance of building trust in AI systems, ensuring they are safe and fair. He shared an example from Goa, where AI was used to streamline the building plan approval process. By codifying complex bylaws, AI quickly identifies violations, allowing plans to be approved in minutes with no human intervention.
Mr. Amitabh Kant echoed Mr. Romal Shetty’s concerns on AI ethics, advocating for regulations that foster innovation rather than stifle it.
He called for global cooperation in AI regulation, warning against national regulations that could hinder progress. Mr Amitabh Kant emphasised,
“Innovation should never be subverted by regulations. It would require an international body, like we have a body for nuclear weapons. You’ll require an international body.”
Conclusion: Can India Achieve a $20 Trillion Economy by 2047?
Both Mr. Amitabh Kant and Mr. Romal Shetty expressed optimism about the country’s ability to achieve a $20 trillion economy by 2047, with a per capita income of $20,000. India’s $4 trillion economy, growing at a healthy rate of 7.5-8% annually, is already on a positive trajectory.
Success will depend on fostering a culture of innovation, particularly in AI and hardware, while ensuring a balanced approach to regulation that promotes both safety and trust. Global collaboration on AI governance, much like in nuclear technology, will also be crucial in maintaining ethical standards.
