India laggards in Global AI Race
Why is India lagging in the global AI race despite its strong IT sector and talented workforce.
Key factors contributing to this gap, includes infrastructure limitations, lack of investment in research and development (R&D), and the absence of a robust ecosystem for innovation.
One major issue was the lack of access to high-quality computing resources, such as GPUs and cloud infrastructure, which are essential for AI development. These resources are either too expensive or unavailable, making it difficult for researchers and startups to compete globally. Additionally, the high cost of data storage and processing further exacerbates the problem.
Another critical factor was the insufficient investment in R&D by both the government and private sector. Unlike countries like the U.S. and China, which heavily fund AI research, India’s spending in this area is pathetically low.
The need for more grants, scholarships, and incentives to encourage innovation and attract top talent.
R&D investment in India, in fact, has declined from 0.8% of the GDP in 2008–09 to 0.7% in 2017-18. Data shows that India’s GERD is lower than the other BRICS nations. Brazil, Russia, China and South Africa spend around 1.2%, 1.1%, above 2% and 0.8% respectively. The world average is around 1.8%.
A significant reason for low R&D spending is the lack of competitive pressure. In an environment where domestic markets are protected by high tariffs and non-tariff barriers, firms face little incentive to innovate.
Then India's education system where Indian universities and colleges are not adequately equipped to teach cutting-edge AI technologies. Outdated curricula, lack of practical training, and limited exposure to real-world applications were cited as significant barriers. Scant collaborations between academia and industry to bridge this gap.
IIM-A, India's top institute stood at 410th rank globally, followed by the Indian Institute of Science 501st rank globally and the Indian Institute of Technology Bombay 568th rank globally.
Education is the most fundamental need of any developing country and should be the number one priority for India. In education sector, India ranks 92, which is way behind the ranks of other developing countries such as Phillipines (76), Malaysia (51), Sri Lanka (59) and many more.
Cultural and organizational challenges where Indian companies prioritizing on short-term profits over long-term innovation, leading to a lack of focus on AI development. Additionally, the fear of failure and risk-averse mindset in the corporate world act as huge hindrances to experimentation and growth in AI.
Indian corporate culture is very much short-term, instant-gratification based. R&D requires time, the results are uncertain, and it needs considerable investment.
India’s regulatory framework lacks similar incentives, further discouraging investment in innovation.
Key recommendations to overcome this is for India to increase R&D funding, improving infrastructure, updating educational programs, fostering a culture of innovation, and encouraging public-private partnerships. With the right policies and investments, India has the potential to become a global leader in AI.
