India could become the world’s AI inferencing capital as $20 bots challenge entry-level engineers, says Abhishek Singh

India is setting its sights on becoming the global leader in artificial intelligence (AI) inference and agentic services, as the rise of automation begins to reshape traditional software roles and challenge the country's $250 billion IT sector. Abhishek Singh, the Additional Secretary at the Ministry of Electronics and Information Technology and the head of the IndiaAI Mission, shared these ambitions at a recent event hosted by the Confederation of Indian Industry. At the core of India’s strategy is the need for its software workforce to adapt swiftly to the rapid advancements in AI technology. Singh highlighted that entry-level engineers are now facing intense competition from automated tools, with a stark comparison drawn to $20 bots that can perform tasks traditionally held by human engineers. "When our entry-level software engineers are competing with $20 bots, how do we position ourselves?" he questioned, emphasizing the importance of integrating these tools as enhancements rather than replacements for human talent. Historically recognized as the world's IT services back office, India now faces the challenge of transforming itself into a provider of higher-value AI solutions. Singh posed critical questions about the country's potential: "Can we ensure that we become the primary source for AI transformation services? Can we position ourselves as the leading providers of agentic AI and physical AI?" He urged major Indian tech companies to consider developing their own in-house coding agents instead of depending solely on foreign platforms like Cursor AI or GitHub Copilot. Singh pointed out that firms like TCS and Infosys have decades of expertise that could be harnessed to create proprietary coding solutions. "Can we build an in-house coding agent to maintain our competitive edge in AI scaling and service provision?" he asked. Furthermore, with announcements in the Union Budget 2026 regarding tax incentives and simplified regulations for data centers, Singh noted that India is poised to attract investments from global cloud providers, positioning itself as a key player in both AI talent and data center capabilities.