India’s AI economy has doubled to $6 billion in 2024 and could reach $32 billion by 2031, but barriers threaten inclusive growth
Data access limits, talent shortages, and high Cloud costs create strong entry barriers for smaller firms and stifle meaningful innovation
AWS, Microsoft, and Google dominate India’s Cloud, while Nvidia, Intel, and AMD lead AI chips. Their market control risks monopolistic outcomes
Europe, the US, and China are regulating AI infrastructure and Cloud services to prevent lock-in and ensure competitive markets
India must define gatekeeper firms, enforce transparency in pricing and algorithms, and prevent infrastructure lock-ins to protect smaller innovators
Beyond NITI Aayog’s AI initiatives, stronger ex-ante rules, data trusts, and penalties for anti-competitive practices are key for a fair, sovereign AI ecosystem