Clipped from: https://www.thehindubusinessline.com/opinion/unlocking-ais-potential/article69594953.ece
Collaboration among govt, tech firms and academia needed
Building a Sovereign AI comes with challenges that require sustained investment, policy clarity, and infrastructure development | Photo Credit: BlackJack3D
India’s AI ambitions are deeply tied to its goal of becoming a global technology innovation hub and achieving a $1 trillion digital economy by 2028. In this evolving landscape, Sovereign AI — which refers to a nation’s capabilities to produce and secure AI using its own infrastructure, data, algorithms, workforce, and business networks — will be crucial to ensuring data security, privacy, and reduced dependency on foreign technologies.
However, there are significant challenges to deploying Sovereign AI locally, such as regulatory and ethical complexities, high infrastructure costs, data quality issues, and skills shortages. To overcome these hurdles, a collaborative approach between the government and industry will be essential where the government provides the vision and policy frameworks, while the private sector brings innovation, expertise, and scalability.
India’s AI landscape is evolving rapidly, driven by research, innovation, and sector-specific applications. Two examples of the many initiatives shaping India’s AI ecosystem are Digital Bhashini, an AI-powered platform that enables voice-based internet access and content creation in Indian languages, and Bharat Gen, the country’s first government funded multimodal large language model enhancing public service delivery through foundational AI models in language, speech, and computer vision.
Recognising AI as a strategic priority, the government has allocated ₹10,372 crore under the IndiaAI Mission. This investment aims to build AI infrastructure with up to 10,000 GPUs and drive AI applications in critical sectors, reinforcing India’s commitment to self-reliant AI development.
But while India is making significant strides in AI, building a Sovereign AI comes with challenges that require sustained investment, policy clarity, and infrastructure development. Latest research by International Data Corporation (IDC) found that 46 per cent of Indian government agency leaders cited high upfront and maintenance costs as key challenges to deploying AI. The research also reported that leaders found evolving AI regulations equally challenging at 46 per cent, while 40 per cent emphasised the need for built-in Sovereign AI compliance tools. On the technical expertise and infrastructure fronts, AI demands specialised skills in machine learning and high-performance computing, therefore, retaining top talent is critical for progress. Significant upgrades would be needed to effectively handle the massive amount of data India generates, as much of it is unstructured, fragmented, and lacks proper labelling.
What can India do?
India would greatly benefit from Sovereign AI models focused on national security, healthcare, and governance, thereby reducing reliance on external tech for these critical sectors.
To drive innovation and build its infrastructure, a flexible public funding model and increased AI R&D investment are key. The IndiaAI Mission’s GPU cluster subsidies are a step in the right direction, enabling wider access to computing power for AI R&D. A strong collaboration between the government and industry is also imperative to accelerating Sovereign AI development. Partnerships between government bodies, technology firms, and academic institutions will enable resource pooling, knowledge sharing, and innovation-driven growth. Similarly, encouraging start-ups and universities to build on open-weight AI models can accelerate innovation. For this to succeed, NITI Aayog and MeitY must provide sustained funding, clear regulations, and strong institutional support.
Lastly, integrating AI with existing DPI systems can help overcome traditional adoption challenges and establish a strong foundation for deploying AI solutions across various sectors. For instance, the Open Network for Digital Commerce (ONDC) can greatly benefit from AI integration, multiplying the benefits of MSMEs competing in the digital economy.
The writer is President and Managing Director, Dell Technologies India
Published on May 19, 2025
aniltikotekar4sme.com 