Why Indian Firms Are Racing to Build Local AI: Key Initiatives and Future Roadmap

Indian companies are working to develop local AI to enhance the nation’s technological capabilities. On March 6, the Ministry of Electronics and Information Technology launched AI Kosha, a platform to gather non-personal data from government departments to develop AI models. The Ministry also introduced the Common Compute portal, offering shared access to GPUs for startups and researchers. These initiatives are part of the IndiaAI Mission, which aims to make India a global AI leader. The mission is backed by ₹10,371.92 crore and focuses on sectors like healthcare, education, and governance. Additionally, translation models will help overcome language barriers and improve communication across India.

Why Indian Firms Are Racing to Build Local AI: Key Initiatives and Future Roadmap

Indian companies are accelerating efforts to develop homegrown artificial intelligence (AI) solutions, aiming to position the country as a global leader in this transformative technology. Recognizing AI’s potential to drive economic growth and societal progress, the Indian government has launched strategic initiatives to bolster innovation and infrastructure. A significant step in this direction was the March 6 announcement by the Ministry of Electronics and Information Technology (MeitY), introducing two pivotal platforms: AI Kosha, a national dataset aggregator, and the Common Compute portal, a shared resource for computational power. These efforts underscore India’s ambition to harness AI for domestic needs while competing on the global stage.

Building a Data Ecosystem with AI Kosha

AI Kosha serves as a centralized repository designed to collect non-personal datasets from government ministries and departments. By compiling anonymized data—ranging from agricultural patterns and healthcare statistics to urban infrastructure details—the platform aims to provide researchers and developers with the raw material needed to train advanced AI models. High-quality, diverse datasets are critical for creating accurate and context-aware AI systems, particularly in a country as complex as India.

For instance, datasets on regional crop yields could empower AI tools to predict agricultural outcomes or optimize supply chains, while healthcare data might enable predictive diagnostics tailored to India’s demographic challenges. By streamlining access to such information, AI Kosha seeks to eliminate bottlenecks that often hinder innovation, ensuring that startups and academic institutions can focus on building solutions rather than scrambling for data.

Democratizing Compute Power via the Common Compute Portal

Alongside data, computational resources are a cornerstone of AI development. Training sophisticated models requires substantial processing power, often reliant on expensive graphics processing units (GPUs). To address this, the Common Compute portal will offer shared access to a centralized pool of GPUs, reducing costs for startups, researchers, and students. This initiative is particularly transformative for smaller players who lack the financial muscle to invest in high-end infrastructure. By democratizing access to compute resources, the government aims to catalyze grassroots innovation, enabling developers to experiment, iterate, and scale AI applications efficiently. The portal is part of a broader roadmap to expand India’s computational capacity, with plans to commission additional GPUs and integrate advanced hardware in the coming years.

The IndiaAI Mission: A Blueprint for Leadership

These initiatives are pillars of the IndiaAI Mission, a government-led program established in 2023 in partnership with Nasscom (India’s tech industry association). Initially conceived as a public-private collaboration, the mission has since evolved into a comprehensive strategy backed by a ₹10,371.92 crore ($1.2 billion) investment. Its objectives span infrastructure development, talent upskilling, and sector-specific AI adoption. Priority areas include healthcare, where AI could revolutionize disease detection and telemedicine; education, through personalized learning tools; and governance, by enhancing public service delivery.

For example, AI-driven platforms could streamline subsidy distribution or improve disaster response systems. The mission also emphasizes ethical AI frameworks to ensure transparency and accountability, addressing concerns around bias and privacy.

Tackling Linguistic Diversity with AI

India’s linguistic diversity—with over 120 languages and thousands of dialects—poses unique challenges for technology adoption. To bridge this gap, the IndiaAI Mission prioritizes the development of multilingual AI models. Advanced translation tools could enable seamless communication across languages, breaking down barriers in education, governance, and commerce.

Imagine a farmer in rural Maharashtra accessing agricultural advisories in Marathi via an AI chatbot, or a healthcare worker in Tamil Nadu using a voice-enabled diagnostic tool in Tamil. Such innovations could democratize access to critical services while preserving linguistic heritage.

The Road Ahead

While these initiatives mark a strong start, sustaining momentum will require addressing challenges such as data privacy, talent shortages, and global competition. Collaboration between academia, industry, and policymakers will be key to creating a thriving AI ecosystem.

Additionally, fostering public trust through responsible AI practices will ensure widespread adoption. As India races to build localized AI solutions, the focus remains on ensuring that technology serves its unique needs—empowering citizens, boosting productivity, and cementing the nation’s position as a pioneer in inclusive, ethical AI. The journey is just beginning, but the foundation laid today could shape India’s technological destiny for decades to come.