Last week, Finance Minister Nirmala Sitarman announced during her budget speech that the Center was Rs. 500 crores to set up a center for excellence in AI and education. This is a positive step towards promoting homegron AI innovation. But more progress is still to be made. India has the intellectual power and ability to create AI models, which is a growing, globally supported by a growing, competitive talent pool in areas such as software development, engineering and entrepreneurship. This is to become an important player in India AI market.
Deepsek, a Chinese AI firm that offers an open -source large language model (LLM), has surprised the world by creating a model in the form of chatgipt -4 at a fraction of the cost. According to API documentation on its website, Deepsek offers $ 0.14 per million input tokens and services on $ 0.28 per million output tokens. In contrast, the Price of Openai’s Chatgpt Plus Subscription and Perplexity AI is priced at $ 20 per month.
India is not a stranger for technological innovation – Mangalayan, to study the surface and atmosphere of Mars on Mars on Mars on Mars on Mars, which cost only $ 74 million. If a small Chinese company can manufacture an AI model that competes with giants such as OpenaiI in a short time and at a fraction of the cost, India can also do it.
India can know a lot about the agility and innovation from the circumstances under which the lampsac was developed – with very limited money and resources. The R1 model of Dipsek costs 20–50 times lower to operate the GPT model of openiAI, while performing them better in logic functions. India is also competing at this place, such as Ola’s homegron AI Chat Assistant, Crutrim and Bharatgipt, with efforts such as a generous AI platform, which can generate lessons, voice and video content in indic languages.
The emergence of Deepsek highlights a major difference between India and China in the research and development (R&D) perspective. China spends 2.65% of its GDP on R&D, while India invests only 0.7%. This difference in the private sector is wide, the sugar industry has contributed to GDP’s 2.06% GDP compared to 0.23% in India. In 2024, China’s total R&D expenditure increased by 8.3% compared to the previous year, reaching around 3.6 trillion yuan.
The Government of India should take steps and take action to regulate the region by facilitating both foreign and domestic investments. It is also important to ensure that patents are preserved and intellectual property rights have been retained, allowing startups to protect their innovations and expand globally.
Fundamentally, the government needs to prioritize AI as a strategic field. This means allocating resources, encouraging private investment, and developing infrastructure necessary to support AI development. Additionally, India should closely examine China’s policy approach, especially how it enabled a company like Deepsak to flourish, and implemented similar strategies to promote homegron innovation.
(Venka is an enterprise investor in which CEO of Nuventures and US Fintech focus on IT company Nuware)
Disclaimer: These are the personal opinions of the author
(Tagstotransite) AI (T) Deepsek (T) China
