HOW INDIA COULD LEAPFROG ECONOMICALLY WITH GENERATIVE ARTIFICIAL INTELLIGENCE

Digital India under the tech-visionary Indian Prime Minister Narendra Modi faces a new challenge as to how to create a public-private partnership to harness the immense power of Generative Artificial Intelligence to bring about transformative changes in all aspects of Indian life.

- Narain Batra

The Indian government has identified AI as an important strategic technology and has launched the National AI Strategy as well as other initiatives to promote AI adoption. Areas, where AI is finding applications in India, include healthcare, agriculture, education, smart cities, financial services, defence, transportation, and energy. Big tech companies, startups, government organizations, and industry are notable players adopting AI. The shortage of AI talent is a big challenge. The Indian government has launched programs like YUVAI (Responsible AI for Youth) to train more students and workers in AI skills. Indian tech universities and companies are also expanding their AI programs and certifications.

It would take some time before India catches up with leading AI nations like the US and China in research output and availability of large datasets. However, the government and private sector are working to boost dataset availability across sectors. Adoption and growth of AI applications are still relatively low compared to global counterparts but are increasing quickly across leading industries. Crucial problems are lack of infrastructure, paucity of talent, business culture open to change, and customer trust, problems which are not unique to India.

Nonetheless, AI in India is a booming landscape with immense potential. The field is experiencing a surge of growth and enthusiasm, with several factors contributing to its current status. Bengaluru is home to the highest number of GenAI startups in India at present. EY report estimates that GenAI could boost India's GDP by $359-438 billion by 2030, representing a 5.9-7.2% increase with a potential to add $1.2-1.5 trillion cumulatively over seven years. Sectors like business services, finance, healthcare, and education are poised for significant impact.