India is on the brink of significant advancements in artificial intelligence, but doubts linger about its pace and capacity to catch up with leading nations, particularly the US and China. With the tech world buzzing from China's DeepSeek, India seems to lag, lacking a unique foundational language model akin to this AI powerhouse.

The Indian government is making efforts to change the game by supplying high-end chips to startups and researchers, with ambitions of rolling out a competitive model within the next 10 months. Notably, recent accolades from AI industry giants, including OpenAI's CEO Sam Altman endorsing India’s participation, indicate a shift in perception. India's user base now ranks as the second largest for OpenAI, signaling a budding market. Furthermore, Microsoft’s $3 billion investment for bolstering cloud and AI infrastructure highlights the growing interest in India’s AI landscape.

Despite having over 200 active generative AI startups, experts caution that India must address fundamental shortcomings in education, research support, and state policy to ascend in the global arena. Currently, China and the US hold a substantial advantage in AI development, bolstered by extensive funding and infrastructure dedicated to research and military applications. In a troubling comparison, between 2010 and 2022, India secured less than one percent of global AI patents while its counterparts amassed 60% and 20%, respectively.

While India boasts a talented workforce, contributing significantly to the global AI talent pool, the nation confronts brain drain as many skilled professionals opt to migrate elsewhere for better opportunities. Industry analyst Prasanto Roy notes that foundational innovations usually stem from robust R&D initiatives, which remain underdeveloped in India.

Moreover, India lacks essential datasets for training AI models that cater to its diverse linguistic landscape. The successful digital payment transformation exemplified by frameworks like the Unified Payment Interface (UPI) has raised hopes for a similar collaboration among government, industry, and academia to foster AI advancements.

Nonetheless, the traditional IT sector has struggled to pivot from service-oriented roles towards pioneering foundational AI technologies, leaving startups to address gaps in this domain. Experts express skepticism about India's ability to deliver groundbreaking models like DeepSeek within the established timeline, emphasizing the importance of strengthening the AI ecosystem through enhanced research facilities and investments.

To truly harness its potential, India must create a conducive environment fostering deep-tech breakthroughs, elevate its infrastructural capabilities, and cultivate an ecosystem that promotes innovation. As the global AI landscape evolves rapidly, the urgency for India to address its internal challenges and fulfill its ambitions for strategic independence in AI becomes increasingly critical.