India’s G20 sherpa says the AI race belongs to tech democratizers, not pricey models

India’s former NITI Aayog CEO and G20 Sherpa Amitabh Kant has outlined a vision for artificial intelligence that emphasizes democratization and accessibility over costly, proprietary models. His remarks, delivered at the launch of a comprehensive digital economy report, highlight India‘s unique position as a global leader in digital transactions and ICT services exports, while acknowledging critical areas where the nation needs to improve its AI capabilities to remain competitive.

The big picture: The race to dominate artificial intelligence will be won by those who make the technology accessible and cost-competitive, not those who build expensive models.

• Success in AI requires collaboration between government, businesses, startups, and citizens to drive inclusive digital growth.
• The future of India’s economy is fundamentally digital, with progress already evident in several key areas.

Key metrics: India currently ranks 11th globally in AI research and 16th in AI infrastructure, indicating room for improvement in the global AI landscape.

• The country maintains the world’s second-largest mobile and internet network by user count.
• India leads globally in digital transaction volume and ICT services exports.

Behind the numbers: The SIDE 2025 report introduces a new CHIPS framework (Connect-Harness-Innovate-Protect-Sustain) for measuring digitalization in developing countries.

• This approach provides a broader definition of digitalization, considering both breadth and depth of digital economy impacts.
• The framework is specifically tailored to assess digital progress in developing nations like India.

Significant challenges: Despite high mobile data usage rates and widespread mobile broadband adoption, India faces several structural hurdles.

• Fixed broadband infrastructure remains underdeveloped, potentially limiting long-term digital resilience.
• Geographic disparities in digital service access persist, despite progress in financial inclusion through UPI.

The path forward: Kant emphasizes three key areas for continued digital transformation:

• Government must strengthen digital infrastructure foundations.
• Businesses need to maintain their focus on innovation.
• Citizens should actively pursue digital skill development.