The AI Race Globally

The global race in artificial intelligence (AI) is gaining momentum as technological changes are shaping industries. AI is going to dominate the software sector that plays a very important role in the economy of India. This sector is currently contributing around 7.5% to the GDP of the country and is expected to increase by 10% in 2025 according to industry insiders. Moreover, the AI market in the edtech sector is estimated to be $80 billion by 2030.

Strategic AI Initiatives in India

To become a global leader in AI, India has stepped up efforts to create an AI hub. Among the proposals was the creation of an AI Excellence Center for ₹500 crore. On this occasion, Finance Minister Nirmala Sitharaman underlined that AI is transforming industries all over the world, and India must establish leadership in AI research and applications.

The centers have already been introduced in agriculture, healthcare, and smart cities. The new proposed center of excellence will primarily focus on education and skill development.

The IT Ministry also announced that it would develop India's own LLMs, which would generate text and perform other machine-learning functions similar to those of ChatGPT and DeepSeek, within the next 10 months.

India's AI Progress

India’s AI infrastructure is rapidly growing. Currently, AI models in the country have exceeded 10,000 GPUs, with a target set at 18,600 GPUs. Comparatively, China’s DeepSeek operates with 2,000 GPUs, while OpenAI’s ChatGPT-4 runs on 25,000 GPUs. Six major developers are collaborating to build India’s own AI model, with the first version expected within 4 to 10 months.

The Global AI Market: U.S. & China Lead

AI is projected to add $15.7 trillion to the economy of the globe by 2030. China and the U.S. have been most innovative in this shift. Now China's DeepSeek AI model going to be another tough competitor when it comes up against U.S.-based technology, especially compared to America dominance.

India has to place strategic investments and provide supportive policy in order to assert itself as being one of the major players worldwide.