Beyond Major AI: How India is Shaping its Distinct AI Revolution?

Nitin Konde, Varun Bhardwaj

25 Feb 2025 — 2 min read

Beyond Major AI: India’s Unique Approach to AI Innovation

IT Minister Ashwini Vaishnaw stated that India aims to develop small language models (SLMs) to address "distinct" issues, in addition to a large language model (LLM). Vaishnaw stated that the government is examining its own digital models with smaller models that can address specific, distinct issues.

During a virtual address at the Nasscom Technology and Leadership Forum 2025, the IT minister stated that the government is concentrating on generating a substantial quantity of non-personal and anonymised datasets for the training of domestically developed fundamental artificial intelligence (AI) models. Vaishnaw also enquired whether the country can establish a robust research foundation. India has established centres of excellence (CoEs), three of which are presently operational, with an additional one allocated in the budget.

Digital Public Infrastructure Acting as a Catalyst

Vasihnaw emphasised that structured data derived from state-supported digital public infrastructure (DPI) will enable India to "distinguish itself" in the forthcoming months and years in the AI competition. Vaishnaw observed that the Centre is utilising AI throughout the India Stack, including services like Digi Yatra, Aadhaar, and UPI. The Minister stated that the outcomes had been exceptional. The efficacy of DPI can be amplified by factors of 10, 15, or even 100, and we incorporate AI in this process.

This will be a significant advantage for us due to our existing foundation. In a virtual fireside chat, Vaishnaw announced that Japan has granted a patent for UPI's "gateway system." A distinguished media site reported that the IT minister indicated the nation intends to shift from a services-orientated economy, particularly in IT services, to a product-centric powerhouse in sectors including semiconductors, AI, and consumer electronics. He stated that India's aspirations in AI surpass simple service delivery or application creation. India might have confined itself to being a hub for use cases and application service provision, but the nation aspires to achieve far greater ambitions.

Government’s Future Plan in the AI Sector

The minister stated that the Centre is pursuing a comprehensive AI strategy, which encompasses the development of indigenous fundamental models, the creation of anonymised non-personal datasets for training, the establishment of centres of excellence for AI research, and the integration of AI education into institutions. The IT minister disclosed that 25 semiconductor products will be developed at the five upcoming semiconductor units in the country, where construction is currently ongoing.

Regarding AI governance, Vaishnaw emphasised that the Centre will maintain a regulatory approach that fosters innovation rather than hinders it. "We must address the potential harm to society and regulate it; yet, we should not allow innovation to be suppressed as has occurred in numerous other nations," he stated.

This follows closely behind reports indicating that the Centre has received a minimum of 67 proposals for the development of a domestic AI basic model. The government has allegedly received offers for the development of 20 LLMs from domestic AI businesses, including Sarvam AI, CoRover, and Ola's Krutrim.