This should come as a wake-up call for India, which is trying to become a leading global player in the AI space. New Delhi needs to focus on AI sovereignty.

In India, the AI sector is currently dominated by global players. 

The challenge: India traditionally has focused on services, whether it is in the information technology (IT) sector or AI. Indian companies have not made a mark as far as IT hardware is concerned; their expertise has been confined to IT services. Indian IT majors have successfully showcased their excellence in software products and services across the globe.

“We prefer providing software services, and that has been a trend in India,” S Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), told The Secretariat. 

However, Krishnan said that the government is now looking to expand Made in India cybersecurity products amid the rising global risks. Even as India is not into manufacturing AI hardware, the government wants to rapidly promote software development, keeping in mind the risks of over-dependence on foreign players.

AI Startups

In India, the AI startups tribe is growing. These startups are providing necessary software support. According to official data, about 90% of Indian startups that have been launched since 2025 have been in the field of AI and related services.

“As I said, we are now focused on developing homegrown cybersecurity products and services, and several steps are already in place,” Krishnan added.

India can boast of its Bengaluru-based AI major Sarvam, which is already making waves in the large language model (LLM) providing specific solutions for the country’s multilingual frame. Krishnan further said that to support the expanding AI structure in India, it is also necessary to encourage talent.

“We must encourage talent at that level. Under the India AI Mission, we do exactly that so that people who are working in the AI space get the necessary support to ensure there is cutting-edge talent,” Krishnan said.

Building a holistic AI ecosystem that focuses on innovation, startups, and strengthening data access is now being driven by India AI, under MeitY.

India AI Mission

In March 2024, the Government launched the India AI Mission with an outlay of Rs 10,372 Cr for the development of the overall AI ecosystem in the country. 

Encouraged by the Government’s initiatives, the leading private sector players, both domestic and global, have taken various initiatives in the AI space

Indian companies like Yotta, CtrlS, Tata Communications, Sify Technologies, ESDS Software Solution and Jio Cloud are growing their cloud and data centre ventures. Though these companies specialise in other tech services, they have a significant presence in the AI space.

Global tech giant Google is moving ahead with the establishment of an AI Hub in Visakhapatnam, Andhra Pradesh. This investment of approximately US$ 15 billion marks Google’s largest investment in India to date.

Tata Group has also announced a US$11 billion investment for an AI innovation city in Maharashtra.