India finds itself at a critical juncture in its AI journey, underpinned by a warning from Stephen Ezell, Vice-President of Global Innovation Policy at the U.S.-based think tank ITIF. He asserts that India’s current AI budget is inadequate to realize its full potential, putting at risk projections of major economic and job growth by the end of the decade.
Ezell highlights that artificial intelligence is inherently “job-transformative, not destructive,” but stresses that India must urgently rethink its data strategies and scale up investment significantly. Without such steps, he cautions, the country may fall short of forecasts that promise the creation of around 2.3 million new jobs and an economic boost ranging from $1.2 to $1.5 trillion by 2030.
Endorsing India’s recent efforts to develop a national AI framework—including the IndiaAI Mission with its $1.25 billion budget—Ezell acknowledges the initiative as a step in the right direction. However, he underscores that this funding level barely scratches the surface of what is required to build AI leadership, especially in training sophisticated systems on comprehensive datasets.
The underlying issue, he explains, is twofold: insufficient investment in both foundational data infrastructure and scalable AI systems able to handle India’s market scale. Without better access to high-quality, interoperable data and a substantial boost in R&D financing, India risks ceding its advantage even as its talent pool grows.
India does have significant strengths in AI readiness. Its talent base is among the largest globally, with many skilled engineers and researchers contributing meaningfully to AI projects worldwide. Initiatives like the IndiaAI Mission signal a commitment to foster domestic innovation. Yet, without a corresponding scale-up in funding and infrastructure, such efforts may falter in delivering high-impact results.
Ezell’s warning is echoed by other recent developments. Despite abundant tech talent and a thriving startup ecosystem, India trails many peer nations in private R&D investment and innovation output. The country’s share of global AI investment remains relatively small, despite strong adoption rates in sectors like knowledge services and public technology platforms.
To capitalize on its potential, India must elevate AI from a nascent ambition to a funded imperative. That means not only sustaining its existing missions but expanding them through public-private partnerships, venture capital mobilization, and industry contributions. Policymakers must integrate AI funding as part of national economic planning, acknowledging its cross-sectoral relevance in fields from healthcare to manufacturing.
If executed effectively, ramped-up investment could move India closer to achieving its forecasted job creation and economic growth goals. It could also pave the way for global leadership in AI-enabled services, tailored models for local languages and society, and scalable platforms for public welfare—cementing India’s role as a powerhouse in the global digital economy.
In the absence of such bold action, however, India may instead face stagnation in its AI ambitions—rich in talent but limited by underinvestment. As the 2030 target looms closer, the question is no longer whether India can lead in AI, but whether it will muster the financial muscle to realize that vision.
