AI sovereignty: India's ambition faces a long road despite growing momentum

In light of recent U.S. restrictions on advanced AI technologies, India is once again confronted with a critical question: Can it establish a fully autonomous AI ecosystem, or will it perpetually rely on foreign technologies and infrastructure? This discussion has gained momentum as AI emerges as a pivotal technology, comparable to cybersecurity, semiconductors, and telecommunications. The Indian government’s IndiaAI Mission has allocated significant resources to bolster domestic AI initiatives. However, industry leaders assert that achieving true sovereignty requires more than just financial commitments. To gain insights into the progress made under the IndiaAI Mission, Business Today reached out to several startups involved in the initiative, probing what has been accomplished, the challenges that persist, and the steps needed to foster a genuinely independent AI landscape. Ganesh Gopalan, CEO of the AI startup Gnani.ai, which recently secured $10 million in a Series B funding round led by Aavishkaar Capital, emphasizes three critical components for developing advanced AI models: people, data, and computational resources. Gopalan notes that while investments are beginning to enhance computational infrastructure and data accessibility, India’s most significant asset is its talent pool. He states, "The best opportunity in India lies in AI talent, which will be the biggest differentiator in the future, and India has a traditional advantage." Gopalan stresses that AI sovereignty is becoming an essential focus not only for nations but also for businesses. Initiatives like the IndiaAI Mission and the proposed Research, Development, and Innovation (RDI) Fund are seen as foundational steps in this direction. However, industry experts recognize that India is still trailing behind global frontrunners. Vivek Raghavan, co-founder of Sarvam, an Indian AI startup that recently raised $234 million in a substantial funding round, points out, "Both the United States and China are way ahead in this game." He believes the funding reflects a growing confidence in the capacity of Indian firms to develop essential AI technologies, despite the existing gaps. Raghavan insists that achieving sovereignty is imperative, stating, "Even if we are lagging behind, we have to do it," as AI capabilities increasingly influence national security, cybersecurity, and digital infrastructure. He advocates for a focus on creating AI models and systems specifically designed for Indian enterprises, government applications, and citizen services. Suraj Amonkar, Chief AI Research Officer at Fractal, one of India’s pioneering AI companies, highlights the rapid advancement of agentic AI, illustrating both the potential and the risks associated with reliance on external technologies. He remarks, "The subsequent restrictions placed on advanced models also demonstrate the importance of sovereignty considerations for the most advanced AI systems." Amonkar believes that India must not only engage in cutting-edge AI research but also become a hub for practical AI applications across various industries. Nevertheless, the road ahead remains challenging. While India is making strides in building computational capacity, funding local startups, and developing talent, experts warn that true AI sovereignty will necessitate sustained investments on par with those of global competitors, alongside a long-term commitment to indigenous models, infrastructure, and research.