"Cost Of An AI Query Has Fallen 280-Fold In 18 Months," Says Ex-Niti Aayog CEO Amitabh Kant

While critics argue that India has yet to carve out a clear position in the global AI supply chain, ex-Niti Aayog CEO Amitabh Kant said India stand at the centre of the fastest fastest diffusion of any general-purpose technology in history.

"Generative AI hit 53% global adoption in 3 years, faster than the PC and the internet. The cost of an AI query has fallen 280-fold in 18 months," he penned in an X post.

Further, he noted that India is "first in the world for AI skill penetration, first in DPI, and building sovereign AI models in all 22 Indian languages, 20% of global data and now building chip capacity."

However, critics continue to favour countries such as South Korea, Taiwan, the Netherlands and China, which have strong semiconductor and electronics manufacturing bases, as well as the United States, which combines deep pools of patient capital with strong intellectual property ownership.

Meanwhile, "India has been right to avoid entering the most capital-intensive segments of the AI race as it instead focuses on building low-cost sovereign AI models and pursuing frugal innovation through small language models, as per SIDE report release by ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE).

Also Read: Why India Receives Only 1% Of Global Private Investment In AI?

The India Edge: Why the Country Is Driving The Next AI Wave 

Its opportunity lies not in replicating the capital-heavy AI strategies of the United States or China, but in building a talent-led, application-driven AI ecosystem that reflects its own comparative advantage.

As the second wave of AI, driven by applications, agents, and widespread use, takes off, India is well placed to emerge as one of the world’s leading user capitals of AI.

"This transition will not happen on talent alone. India will need more risk capital for AI startups, easier access to affordable compute and stronger links between universities, research labs, startups and industry," it noted.