Put capacity ahead of regulation for global competitiveness in AI

Placing capability development over premature regulation could create an Indian AI ecosystem that the world would envy

- SUJEET KUMAR

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India’s artificial intelligence (AI) ecosystem is witnessing extraordinary growth, marked by vibrant competition across the AI value chain.

A mix of homegrown startups such as Sarvam AI, Krutrim and Yellow.ai, alongside global players like Google, Microsoft, OpenAl and Nvidia, are shaping this ecosystem. India’s vast market potential and exceptional talent pool have been noted globally, and about 30% of Indian companies have reportedly moved beyond pilot-phase AI initiatives, outperforming the global average of about 26%. This underscores the country’s readiness to deploy AI at scale.

This growth has been largely enabled by the government’s capacity-first approach, which aims to foster innovation through capacity building, open collaboration and a light-touch regulatory stance that encourages both local and global participation. Initiatives such as the IndiaAI Mission have been designed to empower innovators by ensuring that the ecosystem can breathe and grow freely without being burdened by regulatory barriers that could inadvertently disadvantage Indian startups.

To sustain this momentum, India must continue to prioritize capacity building. Whether viewed from the lens of data protection, competition policy or intellectual property, India’s focus must remain on enabling innovation and empowering enterprises. Such an approach could ensure that Indian innovators are not only participants, but also leaders in shaping the global AI future.