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India faces challenge of limited homegrown AI models, relies on foreign technology: Report

ANI February 24, 2025 181 views

India is grappling with significant challenges in developing its own artificial intelligence capabilities, primarily due to limited hardware, funding, and research infrastructure. The Motilal Oswal report highlights the country's heavy dependence on foreign technology and the obstacles in creating competitive AI systems. However, emerging solutions like DeepSeek offer a promising path forward with cost-effective, open-source AI models that could reduce technological dependency. The Indian government is responding with substantial investments through the IndiaAI Mission, signaling a commitment to developing a robust domestic AI ecosystem.

"India faces challenges such as a lack of homegrown large-scale AI models, dependence on foreign technology" - Motilal Oswal Report
New Delhi, February 24: India faces significant challenges in developing large-scale artificial intelligence (AI) models and remains heavily dependent on foreign technology, according to a report by Motilal Oswal.

Key Points

1

India lacks homegrown AI infrastructure and advanced computing resources

2

Government allocates Rs 2,000 crore for AI mission

3

DeepSeek provides potential cost-effective AI model solution

4

Budgetary initiatives aim to strengthen domestic AI ecosystem

The report highlighted key hurdles such as a shortage of high-end AI hardware, limited access to advanced GPUs and cloud computing, and insufficient funding for research and development. These factors hinder India's ability to create cutting-edge AI systems that can compete globally.

It said "India faces challenges such as a lack of homegrown large-scale AI models, dependence on foreign technology, and limited AI hardware infrastructure".

One of the major barriers to AI development in India is the high cost associated with building large-scale models. The report pointed out that India has a low risk appetite when it comes to AI research and innovation. Limited financial support and infrastructure gaps further slowdown progress in the sector.

However, the emergence of DeepSeek offers a potential solution for India. DeepSeek has shown that high-quality AI models can be developed at a fraction of the cost, making it a viable model for India.

Its open-source nature allows developers and researchers to freely inspect, modify, and use the technology, reducing financial barriers and encouraging community-driven development.

Additionally, DeepSeek focuses on efficiency and algorithmic optimization, meaning it does not require the most advanced and expensive hardware to deliver strong performance. This could be particularly beneficial for India, where access to high-end computing resources remains limited.

Moreover, the ability to customize AI models based on country's diverse linguistic and cultural landscape makes this approach even more relevant.

Recognizing these challenges, the government has announced budgetary initiatives to strengthen the country's AI ecosystem. Under the IndiaAI Mission, an allocation of Rs 2,000 crore has been made to develop India's foundational AI models, establish data centers, and improve AI infrastructure.

Additionally, Rs 500 crore has been set aside for setting up Centers of Excellence (CoE) in AI for education. This will also expand existing AI centers in agriculture, healthcare, and urban planning.

The report highlights that while India is making efforts to boost AI development through budgetary support, a stronger focus on research, innovation, and infrastructure is necessary.

By leveraging cost-effective and efficient AI models like DeepSeek, India has an opportunity to reduce dependency on foreign technology and drive self-reliance in AI advancements.

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