The sovereign AI race: Why India can't afford to depend on foreign tech

India is embarking on a groundbreaking initiative to establish its own sovereign AI technology ecosystem, which encompasses computing, data management, algorithms, and practical applications. This ambitious project aims to lessen dependence on foreign technologies, enhance national security, and seize the economic opportunities presented by the AI revolution. Recently, Union Minister Ashwini Vaishnav revealed plans for India to develop its own semiconductor chips, signaling a significant step forward. However, experts caution that while the intentions are commendable, the path ahead is fraught with challenges. The Ministry of Electronics and Information Technology (MeitY) has outlined a strategic plan through the IndiaAI Mission, emphasizing that control over data, algorithms, and computing resources will dictate the rules in an AI-driven world. As part of this mission, the government has acquired approximately 34,000 GPUs from major industry players such as Nvidia, AMD, AWS, and Intel. While this procurement is a positive move, it represents only a small portion of what is necessary to establish a competitive global presence. The goal is to aggregate national demand, similar to MeitY's bulk GPU purchases, ensuring that startups, researchers, and businesses can access advanced computational resources without prohibitive expenses. Startups like Sarvam, Gnani.ai, and Soket AI have been chosen to develop a domestic large language model (LLM). However, hardware is merely one component of this complex endeavor. Nitin Mittal, Deloitte’s Global AI Leader, warns that without fostering local capabilities, India may encounter significant barriers to growth. He believes that the years 2025 to 2030 present a crucial opportunity to leverage India’s design expertise, but the lack of indigenous advanced semiconductor fabrication facilities and High Bandwidth Memory (HBM) capabilities could jeopardize long-term competitiveness. Dr. Vivek Raghavan, co-founder of Sarvam, emphasizes that an exclusive reliance on foreign AI models is a strategic misstep. He argues that foundational models influence language, decision-making, and the perspectives that AI systems adopt. India possesses the essential elements to become a leader in this field, including its diverse linguistic landscape, a rapidly digitizing economy, robust public infrastructure, and deep technical expertise. However, there is a pressing need for cohesive national efforts to align these strengths into a unified capability. The journey towards establishing a national tech ecosystem is vital, but it is also complicated by a historical apprehension towards risk-taking. Punit Pandey, founder and CIO of Ojas Softech and Astrosage AI, asserts that achieving cloud sovereignty is equally critical. "If India had its own cloud infrastructure, we would have greater control over our data. Without it, we remain dependent on external sources," he explains. While some may believe India is managing well, the absence of globally recognized tech products, despite the nation's significant presence in Silicon Valley, is a stark reminder of the challenges ahead. For policymakers, the path forward is clear yet demanding in terms of investment. There is a need to focus on developing sovereign intellectual property (IP) cores, fund open-source electronic design automation (EDA) toolchains, and prepare for local manufacturing and memory ecosystems. Only by securing the entire silicon value chain can India transition from being a global support hub to a comprehensive AI powerhouse. Practical applications will play a crucial role in garnering public support for this vision. Abhishek Singh, Additional Secretary at MeitY and CEO of the IndiaAI Mission, highlighted Bhashini, India’s natural language processing platform, which facilitates seamless communication across all Indian languages. For instance, a woman in a remote village can call a toll-free number, describe her health issue in her native language, and receive prompt medical advice. Singh asserts, "These are the solutions that bring the concept of sovereignty to life." The ambition for a sovereign AI stack is audacious, vital, and, by most assessments, still a distant goal. The stakes—economic, strategic, and social—are too significant to overlook. In the quest to shape the future of AI, India cannot afford to remain a passive observer; it must actively build, own, and lead in this transformative domain.