Relevance: GS Paper III (Science & Technology & Indian Economy)

Source: Indian Express

1. The Current Scenario: Big Dreams vs. Small Budgets

India wants to be a global leader in Artificial Intelligence (AI). However, experts are worried that there is a big gap between what we want to do and what we are actually spending.

• The Money Gap: In the Union Budget 2026, the government kept ₹1,000 crore for the IndiaAI Mission. While this sounds like a lot, it is very small compared to China, which spent nearly $98 billion last year, or U.S. companies like Google and Meta, who spend hundreds of billions.
• The Talent Gap: We have the world’s largest number of developers, but they are mostly being trained to manage AI made by others. We need more researchers who can invent new AI models from scratch.

2. The “Consumer Trap”: Why We Must Own the Technology

Right now, India is mostly a “consumer” of AI. This creates a few big problems:

• Depending on the West: Nearly 75% of AI apps in India use “Western brains” (like ChatGPT’s API). If these foreign companies change their rules or prices, Indian startups could be in trouble.
• The “Compute” Crisis: To build a real AI, you need powerful computers (GPUs). In India, we use 65% of our computer power just to run existing AI, and only 21% to train or create new ones.
• Data but No Model: India provides the “raw material” (data from our huge population), but foreign companies use it to build the “finished product” (the AI model). We need to build our own models that understand our local languages and culture.

3. The Way Forward: How India Can Lead

To become a true “AI Creator,” India needs to change its strategy:

1. Build Our Own “Brain”: Instead of just using Western AI, we must invest in building our own foundational models (Sovereign AI).
2. Sovereign Infrastructure: The government must build massive National Data Centers so that our researchers don’t have to depend on foreign servers.
3. High-End Research: We need to encourage more students to do PhDs in Deep-Tech so they can invent the next generation of AI.
4. Using Our Data: Use the Digital Personal Data Protection Act to ensure Indian data is used primarily to train Indian AI models.

UPSC Value Box

Why this matters for Governance:

• National Security: If we own our AI, no foreign power can “switch off” our digital systems during a crisis.
• Digital Colonization: If we only remain consumers, we will always have to pay “rent” to foreign tech giants for using AI.

The Key Lesson:

India’s success with UPI showed we can lead the world in digital protocols. In the AI era, we must lead in Intellectual Property (IP)—which means owning the AI models ourselves.

Summary

India has the data and the developers, but we are currently trailing in investment and high-end research. To avoid being just a “market” for others, we must build our own powerful computers and AI models. True independence in the digital age means being a Creator, not just a Consumer.

One Line Wrap: To lead in the AI race, India must stop renting the “brains” of the West and start building its own.

“India’s journey from an AI consumer to an AI creator is hindered by a lack of domestic infrastructure and research funding.” Discuss. (10 Marks, 150 Words)

Model Hints

• Intro: Define AI Sovereignty (owning the tech). Mention the low budget compared to China/USA.
• Body:
  • Explain the API Dependency (renting Western AI).
  • Mention the Inference vs. Training gap (65% vs. 21%).
  • Talk about the need for Sovereign Data Centers.
• Conclusion: India must focus on IP-led growth to become a developed nation by 2047.