India AI: The Dilemma of Autonomy vs. Scarce Resources

India is seriously considering developing its own advanced artificial intelligence models. The primary reason is to avoid dependence on other nations, especially concerning national security and the control of critical data.

The stakes are high. If global AI power remains concentrated in a few countries, India risks becoming a mere consumer. This could compromise its defense capabilities, sensitive data management, and long-term economic competitiveness. Srikanth Velamakanni, co-founder of Fractal Analytics and NASSCOM Chairperson, discussed this challenge in a Bloomberg News video published on July 9, 2026.

Building cutting-edge AI models demands immense resources that India currently lacks. We are talking about specialized chips, massive computing power, and adequate funding, all of which are scarce in the country.

The question is whether the push for autonomy justifies these colossal investments. There are significant costs, not just financial, but also in terms of time and talent. It's a race against the clock and against giants with a huge head start. India currently faces significant gaps in chip manufacturing and the availability of computing infrastructure required to train advanced AI models.

The choice isn't easy. On one side, there's the pride and necessity of having total control over its own AI technology. On the other, there's the reality of needing to use foreign systems to avoid falling behind, accepting the inherent risks.

Many experts, including Ganesh Ramakrishna (also mentioned in the discussion), emphasize balancing these ambitions. Perhaps a middle ground, collaborating on some fronts and developing only the most critical parts internally, could be India's wisest solution. The concentration of global AI power in a few countries raises concerns for India's security and economic resilience, as highlighted in the ongoing debate.