India’s Emerging Role in the Global AI Race: What Rishi Sunak’s Remarks Reveal About a Shifting Tech Landscape
Artificial intelligence (AI) has rapidly moved from research labs into everyday life, reshaping industries ranging from finance and healthcare to agriculture and education. In recent years, countries across the world have begun positioning themselves as leaders in this transformative technology. Against this backdrop, British Prime Minister recently remarked that India is “well positioned” to lead in artificial intelligence — a statement that reflects both geopolitical optimism and measurable technological momentum.
But what does it mean for India to lead in AI? How did the country reach this point? What challenges lie ahead? And how might this affect citizens, businesses, and global power dynamics?
This explainer unpacks the context behind the claim, the structural factors that have shaped India’s AI ecosystem, and the implications for the future.
The Global AI Moment: Why Leadership Matters
Artificial intelligence is not just another technological trend. It represents a foundational shift in how economies function. AI systems now power language models, automated manufacturing, predictive analytics, smart agriculture tools, fraud detection systems, and more.
Countries that succeed in developing strong AI capabilities stand to gain:
- Economic growth through new industries and productivity gains
- Strategic influence in global technology governance
- Enhanced national security capabilities
- Increased foreign investment
Over the past decade, nations such as the United States and China have dominated headlines in AI development. However, the landscape is broadening. Emerging digital economies, including India, are becoming significant players due to scale, talent pools, and policy focus.
Why India Is Being Viewed as a Potential AI Leader
1. A Vast and Skilled Talent Pool
India produces one of the largest numbers of science, technology, engineering, and mathematics (STEM) graduates globally. Institutions such as the Indian Institutes of Technology (IITs) and Indian Institutes of Information Technology (IIITs) have cultivated globally competitive engineers and researchers.
Beyond elite institutions, India’s broader IT services industry — developed over decades — has created a workforce familiar with data management, software development, and global technology standards. This human capital is a core ingredient for AI development.
2. Digital Public Infrastructure at Scale
One of India’s unique advantages lies in its large-scale digital public infrastructure initiatives. Programs such as , the Unified Payments Interface (UPI), and the broader “India Stack” ecosystem have digitized services for hundreds of millions of citizens.
These systems:
- Generate large datasets (with privacy safeguards)
- Enable seamless digital identity verification
- Support financial inclusion
- Provide a foundation for AI-powered services
AI thrives on data. A country with a large, digitally connected population offers opportunities for AI experimentation and deployment at scale.
3. Government Policy and Strategic Focus
The Indian government has articulated AI as a national priority. , the government’s policy think tank, released a national strategy for AI focused on “AI for All,” emphasizing inclusive development.
Policy priorities have included:
- Encouraging AI research and innovation
- Supporting startups
- Focusing on AI applications in agriculture, healthcare, education, and smart mobility
- Strengthening public-private partnerships
More recently, India has been discussing semiconductor manufacturing, data governance frameworks, and responsible AI regulation — all of which form part of a broader technology strategy.
4. A Thriving Startup Ecosystem
India is home to one of the world’s largest startup ecosystems, particularly concentrated in cities such as Bengaluru, Hyderabad, Pune, and Gurugram.
AI-focused startups are working on:
- Language technologies for India’s multilingual population
- AI-powered diagnostics in healthcare
- Agricultural yield prediction tools
- Financial risk analysis systems
- Climate data modelling
The combination of domestic demand and export potential makes AI entrepreneurship viable at scale.
Historical Context: How India’s Tech Story Evolved
India’s emergence in AI did not happen overnight. It is the result of decades of incremental change.
| Period | Key Development | Impact on AI Potential |
|---|---|---|
| 1990s | IT services boom after economic liberalization | Built software talent base |
| 2000s | Global outsourcing hub expansion | Developed global tech integration |
| 2010s | Digital public infrastructure rollout | Enabled large-scale data ecosystems |
| 2020s | Startup surge and AI policy focus | Positioned India in AI innovation space |
Liberalization and IT Growth
After economic reforms in 1991, India’s IT sector grew rapidly. Companies such as and built global reputations in software services. This period created technical capabilities, export relationships, and managerial experience.
The Digital Leap
The 2010s saw a dramatic expansion of digital services. Mobile penetration increased, internet access widened, and digital payments expanded. Government-led digitization made technology part of everyday life for millions.
AI became the logical next step — moving from digital connectivity to intelligent automation and data-driven services.
How AI Development Works in Practice
AI systems typically require three core ingredients:
- Data – Large datasets to train models
- Compute power – Advanced hardware such as GPUs
- Talent – Engineers, researchers, and data scientists
India’s strengths lie in data scale and human capital. However, challenges remain in high-end semiconductor manufacturing and advanced computing infrastructure, areas where global supply chains remain critical.
Collaborations with countries such as the United Kingdom and the United States have increasingly focused on:
- AI safety
- Research partnerships
- Technology investment
- Semiconductor cooperation
Such partnerships may influence how India’s AI ecosystem matures.
Who Is Affected — and How?
AI development is not limited to tech companies. Its effects extend across society.
1. Workers and Employment
AI can automate repetitive tasks, raising concerns about job displacement. In India’s services-driven economy, automation may affect certain roles in back-office operations and customer support.
At the same time, AI also creates new roles:
- Data scientists
- AI ethics specialists
- Machine learning engineers
- AI product managers
The overall employment impact depends on how quickly skills training adapts to new demands.
2. Farmers and Rural Communities
AI-powered tools can analyze soil conditions, predict crop yields, and optimize irrigation. For a country where agriculture employs a significant share of the population, productivity gains can have large social effects.
However, access to technology, affordability, and digital literacy remain important barriers.
3. Healthcare Systems
AI-assisted diagnostics, predictive health analytics, and telemedicine can help address India’s uneven healthcare access. Rural regions, in particular, may benefit from AI-supported screening tools.
Still, data privacy and regulatory oversight are essential to prevent misuse.
4. Small Businesses
AI tools can help small enterprises:
- Automate accounting
- Manage supply chains
- Analyze customer trends
- Improve marketing
Lower costs of AI services could make advanced analytics accessible to small businesses that previously lacked such resources.
Economic and Strategic Implications
Economic Growth Potential
AI has the potential to contribute significantly to GDP growth by improving productivity across sectors. Automation in manufacturing, logistics optimization, and data-driven services can increase efficiency.
India’s large domestic market also provides a testing ground for AI products that can later be exported to other emerging economies.
Geopolitical Positioning
Technology leadership increasingly shapes geopolitical influence. Countries with strong AI capabilities often participate in setting international standards and norms for responsible AI use.
By being recognized as “well positioned,” India gains diplomatic leverage in global technology discussions.
Challenges and Risks
Despite optimism, significant hurdles remain.
Infrastructure Gaps
High-performance computing requires robust electricity supply, advanced data centers, and semiconductor availability. India is investing in these areas but still relies heavily on global supply chains.
Data Privacy and Regulation
India has introduced data protection frameworks, but balancing innovation with privacy rights is complex. Without trust, AI adoption could slow.
Inequality and Access
Urban tech hubs benefit more immediately from AI investment. Ensuring that rural and underserved populations share in the gains is a continuing policy challenge.
Global Competition
The AI race is highly competitive. Countries such as the United States and China invest heavily in research and advanced chip manufacturing. India must continue scaling investment to remain competitive.
What Could Happen Next?
Several possible developments may shape India’s AI trajectory:
- Increased international collaboration – Joint research projects and AI safety initiatives may deepen ties with countries like the UK and US.
- Expanded semiconductor manufacturing – Reducing reliance on imports could strengthen domestic AI capacity.
- Regulatory evolution – Clearer AI governance rules may attract investment while protecting citizens.
- Language-based AI innovation – India’s multilingual environment may drive breakthroughs in language models tailored to diverse populations.
India’s demographic profile — a young population combined with rising digital literacy — also suggests sustained demand for AI-driven services.
A Balanced Outlook
Rishi Sunak’s comment that India is well positioned to lead in AI reflects recognition of structural strengths: scale, talent, policy direction, and digital infrastructure. However, leadership in AI is not a static achievement but an ongoing process requiring sustained investment, careful governance, and global cooperation.
The next phase will likely depend on how effectively India addresses infrastructure gaps, manages ethical risks, and ensures inclusive access to AI benefits. If these elements align, India could play a significant role not just in deploying AI technologies, but in shaping how they are governed and integrated into society.
In the broader global AI landscape, leadership is less about dominance and more about contribution — to innovation, safety, and shared prosperity. Whether India ultimately becomes a central pillar of this emerging order will depend on decisions being made today across government, industry, and academia.
For now, the country stands at a moment of opportunity — one defined not only by technological capability, but by the responsibility that accompanies it.