India On Par With US, China On AI: Vaishnaw

Thu, 22 January 2026
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India belongs in the same group as the United States and China when it comes to leading R&D in the AI revolution, as the country is working simultaneously on all five layers of the AI architecture, Union Electronics and Information Technology Minister Ashwini Vaishnaw said in response to a question by a panel that alluded to a comment made by International Monetary Fund MD Kristalina Georgieva.

Georgieva had said the US and China were in one group when it came to AI development, whereas India and other countries were in the second group.

India, Vaishnaw said, had been ranked third in Stanford's AI preparedness and penetration rankings and second in the AI talent base rankings.

Speaking at a discussion at the World Economic Forum in Davos, Vaishnaw said India was working on the applications in AI, AI models, the chips that run these models, the data centre which hosts them, and the energy that will power the AI infrastructure.

'On the application layer, we will probably be the biggest supplier of services to the world. Go to an enterprise, understand their business and the working and then provide that service using AI applications. This is going to be the biggest factor of success or successful deployment of AI,' Vaishnaw said.

The return on investment in various layers of AI will come from the application layer, not from cutting-edge large language models (LLMs) being developed by companies and countries. Nearly 95 per cent of the world's work today can be completed successfully using models that run on 20 billion or 50 billion parameters, he said.

India, he added, already has a bouquet of such AI models being deployed across multiple sectors to increase productivity, efficiency, and effective use of technology.

'Our focus is very much on ensuring that AI diffusion happens in a very big way,' he said. -- Aashish Aryan, Business Standard