India can boost its artificial intelligence capabilities to rival ChatGPT. Microsoft India’s Chief Technology Officer shared this insight at the ET Soonicorns Summit 2025 in Bengaluru. The key lies in building robust AI infrastructure and mastering comprehensive toolchains.
The Microsoft CTO emphasized India’s unique position in global competition. “India has the talent and drive to innovate, creating AI tools that resonate with our cultural context,” the executive observed during the summit discussion.
India’s AI market trajectory supports this ambitious vision. According to Statista, the market size will reach US$244.22 billion in 2025. The projected annual growth rate stands at 26.60% through 2031. This positions India for a market volume of US$1.01 trillion by 2031.
Strategic Advantage
Government backing strengthens India’s competitive edge significantly. IT Minister Ashwini Vaishnaw announced cost advantages that could transform adoption rates. India’s AI model computation will cost less than 100 rupees per hour after government subsidies. Global models currently cost $2.5-3 per hour usage, according to Economic Times reports.
Infrastructure investments demonstrate serious commitment to AI leadership. Instead of planned 10,000 Graphics Processing Units, India secured 18,693 GPUs. The inventory includes 12,896 Nvidia H100s and 1,480 Nvidia H200s among the most advanced units available.
Dr. Vishnu Vardhan, Co-founder and CEO of Hanooman.ai, highlighted localization strategies. “Our goal is to develop comprehensive AI solutions tailored to Indian needs,” Dr. Vardhan noted during industry discussions. This approach addresses unique demographic and cultural challenges.
Market Impact in India
Industry leaders gathered voices reveal India’s strategic positioning advantages. Sandeep Alur, CTO of Microsoft Innovation Hub, joined discussions alongside other technology experts. Their insights shape understanding of infrastructure requirements and innovation pathways.
Foundational models must align with local cultures and languages. This creates opportunities for Indian businesses to address domestic markets effectively. Companies developing indigenous capabilities can elevate both domestic and global competitiveness.
The global AI race intensifies as nations strive for competitive advantages. DeepSeek recently surpassed ChatGPT as the top-rated free app on US Apple App Store. This development demonstrates how quickly market dynamics shift in artificial intelligence sectors.
What Business Leaders Should Know
Business leaders should monitor infrastructure advancements and government support closely. The Indian AI market embraces exponential growth potential that could reshape competitive landscapes. Companies aligning strategies with evolving AI capabilities can fast-track innovation cycles.
Stakeholders interviewed noted India aims to excel beyond mere competition. The focus centers on addressing unique challenges through demographic and cultural understanding. This approach could set new benchmarks for AI success globally.
Timing becomes critical as global competition accelerates rapidly. India’s advantages include world-class technical talent and thriving startup ecosystems. Government backing through India AI Mission initiatives provides additional strategic support.
The ET Soonicorns Summit 2025 featured comprehensive discussions on scaling strategies. Industry heavyweights addressed questions about investment priorities and real disruption opportunities. These conversations reveal operational secrets behind building AI unicorns.
Localised data centers could bridge digital divides effectively. Experts discussed AI applications for emerging markets with similar cultural contexts. This specialization might become India’s secret weapon against global competitors.
Infrastructure readiness exceeds original expectations significantly. Total high-end GPUs now number around 15,000 units available. Industry observers noted that models like DeepSeek trained on just 2,000 GPUs successfully.
Success requires cross-sector collaboration and strategic thinking. Execution excellence becomes essential for competing with well-funded global players. The combination of innovation, partnerships, and government support creates promising foundations.
Companies should evaluate their AI strategies against these developing capabilities. Indigenous AI development could unlock massive domestic value while building export potential. Business leaders must position themselves for this technological transformation opportunity.
