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Funding & Policy Gaps:
—> Union Budget 2026 allocated ₹1,000 crore for the IndiaAI Mission, which appears inadequate for building sovereign AI capabilities.
Global Comparison:
—> China’s massive AI investment (USD 98 billion in 2025, with USD 56 billion government spending) far exceeds India’s allocation.
—> US tech giants — Amazon, Google, Microsoft, Meta, and Oracle — are projected to invest USD 700 billion collectively in 2026.
—> The global AI race is driven by sustained, high-scale capital investment and state backing.
Infrastructure & Talent Deficit: India lacks:
—> Large-scale GPU clusters.
—> Adequate R&D funding.
—> World-class computational infrastructure.
—> The education system produces service-sector talent rather than frontier AI researchers.
—> Shortage lies not in AI engineers but in “AI Ops” expertise — deployment, optimisation, and monitoring of complex AI systems.
Global Rankings & Reality Check:
—> The WEF ranks India eighth in AI investment, far behind the top three.
