India's AI Push Attracts Global Talent as Indigenous Model Development Gains Momentum:

India’s initiative to develop indigenous AI foundational models is drawing interest not only from domestic talent but also from Indian-origin researchers and engineers abroad, according to Abhishek Singh, Additional Secretary at MeitY and CEO of the IndiaAI Mission.

“We are seeing many qualified professionals returning from the US. The foundational model call for proposals has created opportunities, and we have received submissions from Indian researchers currently overseas who are now forming companies and collaborating with partners in India to build AI solutions,” Singh told Moneycontrol in a virtual roundtable ahead of the Nasscom Technology & Leadership Summit.

Singh noted that 60 applications have been received, with a dedicated committee formed for evaluation. This surge in interest from Indian-origin researchers signifies a shift in the country's AI landscape, which has long suffered from a brain drain of top tech talent to the US and other developed nations.

India’s Commitment to AI Development

On January 30, Union IT Minister Ashwini Vaishnaw announced India’s plans to develop its own Large Language Model (LLM), tailored specifically for Indian needs. Following this, on February 11, the Indian government allocated Rs 1,500 crore under the IndiaAI Mission to support the development of indigenous foundational AI models.

Building a Strong AI Talent Pipeline

Despite the influx of returning talent, Singh emphasized that India’s AI workforce will largely consist of domestic professionals. To sustain AI adoption and innovation, the government has introduced AI and data science courses at the school level and launched initiatives such as the YUVAi program, which has trained over 100,000 students in AI concepts and projects.

Singh highlighted India’s growing AI expertise, citing the Stanford AI Index 2024 report, which ranks India as the global leader in AI skill penetration.

“India has one of the world's largest AI-trained workforces. Many of our engineers and researchers work for top global tech companies such as Microsoft, OpenAI, Google DeepMind, and Meta. We have traditionally been the brain-power hub for the world,” Singh said.

Beyond AI, similar trends are emerging in sectors like space, where progressive policies and new opportunities are fueling reverse brain drain, he added.

India as the AI-Use Capital of the World

But what happens once India’s LLM is fully developed? Singh believes that India is poised to become the AI-use capital of the world—a sentiment echoed by India’s Aadhaar architect and Infosys co-founder Nandan Nilekani and other industry leaders.

One key organization driving AI applications across domains, including startups, is the Centre of Excellence (CoE) for IoT and AI, which operates in Bangalore, Gurgaon, and Ahmedabad.

Many researchers leverage LLMs to generate ideas, leading major foundational model developers to launch deep research models. However, CoE CEO Sanjeev Malhotra emphasized that transforming research ideas into commercial applications remains a challenge.

“They have to either sell their research ideas to entities that can commercialize them or establish their own startups to bring their ideas to market,” Malhotra explained during the roundtable discussion.

To further AI adoption, India must ensure a steady supply of AI talent. In addition to school-level AI courses and the YUVAi program, the Union Budget 2024 allocated Rs 500 crore for a new AI education center.

Balancing AI Adoption and Job Disruptions

Despite AI’s rapid expansion, concerns persist over potential job losses, particularly in the short term as job roles evolve.

To mitigate this, Nitin Seth, CEO of IT service management firm Incedo, advocates for fostering a massive wave of entrepreneurship in India.

“We need to create an entrepreneurial revolution to counterbalance job disruptions. Given our young workforce and strong tech adoption, India is well positioned for this transformation,” Seth said.

With substantial investments, a growing AI-skilled workforce, and strong policy support, India’s AI ambitions are gaining momentum, shaping the country’s future as a global AI powerhouse.