India's Vision for 2047: Viksit Bharat, AI Economy, and Technological Advancements

Bhavish Aggarwal: India's path to global leadership lies in mastering technologies of the future

This is part of a special series of articles by the country's foremost voices, ahead of Union Budget 2024, aiming to draw attention to the critical reforms that can help India in its journey to become a developed nation by 2047. In the last decade, India's gross domestic product (GDP) has nearly doubled to $3.5 trillion, showcasing our resilience as one of the world's fastest-growing major economies. As we envision Viksit Bharat by 2047, increasing our economic growth from 8% to 12% could transform India into a $50 trillion economy. The global landscape is witnessing rapid technological advancements, particularly in artificial intelligence (AI) and new energy. Our peers, notably China, are investing heavily in 'new productive forces', transforming traditional industries and fostering emerging sectors. To drive India's growth and competitiveness, we must prioritize AI and new energy as foundational technologies that can revolutionize our entire economy. In 1947, we won our political freedom. In 2047, we must achieve our technological freedom. We need to create our own playbook for technological advancement -- one that addresses our unique challenges and leverages our strengths. It's about using tech not just for economic growth, but for societal transformation. Building India's own AI stack: While India's economy has digitized significantly, our compute penetration remains low. Despite our huge success in information technology (IT) services, they represent just 1% of the $30 trillion global technology industry. Our global competitors have rapidly accelerated investments in AI, pouring hundreds of billions into research, infrastructure and talent. India's approach to AI must leverage our core strengths across data, compute and algorithms. Data colonization: India generates 20% of the world's data, yet 80% is stored offshore, processed into AI and imported back in dollars. This 'data colonization' is reminiscent of the East India Company's practices, where India's raw materials were extracted and processed products sold back at a premium. Today, our digital raw material -- data -- is similarly exploited. We must reverse this trend by leveraging our digital public infrastructure (DPI) to create privacy-preserving datasets. We can build on our DPI success (UPI, UIDAI, ONDC) to create the world's largest open-source AI, grounded in Indian ethos. Compute infrastructure: In terms of compute infrastructure, India currently has only 1GW of data centre capacity, while the global capacity is 50GW. By 2030, projections show the US at 70GW, China at 30GW and India at 5GW if we maintain our current trajectory. To achieve AI leadership, we need rapid AI adoption, data localization norms, incentives for global computing companies, and production-linked incentive (PLI) schemes for data centres. Deploying 50GW by 2030 will require $200 billion in capital -- an ambitious but achievable goal. India is the world's largest hub for silicon development and design talent, yet we lack Indian-designed chips. We need industry-led chip design projects and government incentives through research-linked incentive schemes. Accelerating the deployment of cutting-edge process fabs of less than three nanometers in India is a geostrategic imperative. R&D on algorithms: As AI research becomes increasingly closed and proprietary, India has a unique opportunity to become a global champion of open innovation in AI research and development (R&D). We can achieve this by attracting world-class talent and the best scientists to work in India, providing industrial-scale resources for research and offering government incentives for AI R&D. By creating a globally leading open innovation platform for AI, India can position itself at the forefront of AI advancement while ensuring that our values and perspectives shape the future of this transformative technology. New energy supply chains: The new energy paradigm is shifting from mining and refining of fossil fuels to advanced material sciences, particularly for critical minerals like lithium. This transition is reshaping the global energy landscape, and India must position itself at the forefront of this revolution. The new energy ecosystem rests on three pillars: renewable energy (RE) generation, battery storage and electric vehicles (EVs). RE generation: India's RE capacity has grown from 72GW in 2014 to over 175GW in 2023, with solar capacity rising from 3.8GW to more than 88GW. However, we still lag behind global leaders. In 2023, China deployed 215GW of solar energy capacity compared to India's 8GW. We must intensify our focus on RE deployment to reach our target of 500GW by 2030. Battery storage: For renewable energy to be truly effective, we must couple it with robust battery storage solutions. Currently, our battery storage production capacity is only 2GWh, compared to China's 1,700GWh. To power our RE grid and achieve 100% EV adoption, we need to aim for 1,000GWh capacity. This significant increase in battery storage will not only support our RE goals but also drive down costs and improve energy accessibility across the country. The EV sector: In the EV sector, India's current auto penetration is less than 200 vehicles per 1,000 people, with 2 million EVs sold annually compared to China's 30 million. By 2030, India should aim to become the world's largest EV market, potentially producing 50 million EVs. This shift will create a cleaner environment, lower transport costs for consumers and reduce the economy's overall logistics expenses. Currently, 90% of the new energy ecosystem -- from solar production to lithium cell production and midstream processing to EV manufacturing -- is concentrated in China. By building our own technologies and supply chains, we can make our economy more energy-efficient and create tens of millions of future-ready jobs. This transition will secure our energy independence and position us as a key player in the global fight against climate change. India's path to global leadership lies in mastering these technologies of the future. Our journey isn't about catching up; it's about leapfrogging our competitors to become pioneers in AI and new energy paradigms. This is our moment to transform India into the world's most technologically advanced economy, creating hundreds of millions of future-ready jobs. To realize this vision, we need a unified effort from all stakeholders in our society. Just as every Indian played a part in our struggle for independence, every citizen now has a role in building our technological future. We stand at a critical juncture. The next decade will determine whether India emerges as a true tech superpower or remains on the periphery. It's time for bold action and big dreams. The future is ours to create, and the time to act is now.

Budget 2024 | Amitabh Kant: A place on the global technology map

Throughout history, technological advancements have repeatedly disrupted the labour market. The printing press, mechanized looms and the World Wide Web each brought about a transition that heralded turning points in human achievement. Now, as we stand on the brink of an artificial intelligence (AI) revolution, we face another profound shift in the workforce. The Indian economy is experiencing a once-in-a-generation opportunity with the ongoing AI revolution. AI is set to contribute a substantial $967 billion to India's economy by 2035 and usher in a new era of innovation and growth. Recognizing the significance of this transformative period, the government of India has allocated a substantial five-year budget of ₹10,372 crore to the India AI Mission. This initiative aims to spur AI innovation through dynamic public-private partnerships, with ₹2,000 crore specifically designated to support deep technology startups. India's engagement in AI on a global scale is robust, with the second highest number of GitHub AI projects worldwide, comprising 19% of global AI endeavours. From 2015 to 2023, India led the world, expanding its AI talent pool, with an impressive 263% increase since 2016. In 2023, the hiring of AI talent in India surged by 16.8% year-over-year, indicating a strong emphasis on cultivating AI skills within the workforce. According to Nasscom, 70% of Indian startups are integrating AI to propel their growth, highlighting its pivotal role in our startup ecosystem. The IBM Global AI Adoption Index 2023 reveals that 74% of Indian enterprises that have adopted AI are not merely using the technology, but are actively increasing their investments, underscoring the strategic importance of AI in enhancing operational efficiencies and pioneering new avenues for development. Transition periods invariably bring their own set of adjustment challenges, and the current shift towards AI-driven economies is no exception. According to the Future of Jobs report by the World Economic Forum, we're on the brink of a major upheaval in the global job market, with nearly one-fourth of existing jobs facing potential turnover and about 44% of the workforce needing to adapt to altered skill demands. Similarly, the International Monetary Fund's recent analysis reveals that 40% of global employment is now vulnerable to AI innovations. AI's remarkable ability to enhance operational efficiency, streamlining processes with unparalleled precision, is indeed transformative. However, this surge in productivity also prompts critical questions about inclusivity within the workforce. How can we ensure that the benefits of technological advancements are equitably shared? Moreover, AI ushers in unprecedented creative possibilities with the advent of generative AI. Yet, there's a risk that excitement about these capabilities could overlook the valued role of human diligence. It is essential to strike a balance where AI complements rather than replaces human expertise, fostering a collaboration that enhances both technology and human insight. As the prime minister put it eloquently in his remarks at the recent G7 Summit, "We have to collectively ensure that the benefits of technology reach all sections of society, to realize the potential of every person in the society, to help in removing social inequalities, and expand human powers instead of limiting them. This should not only be our desire, but our responsibility." Herein, a collaborative effort of policymakers, businesses and the tech community becomes critical. First and foremost, as we navigate the integration of AI into the workforce, India must aim to establish comprehensive end-to-end AI capabilities. India should not limit itself to merely being the application frontier of AI; it must ambitiously strive to establish foundational capabilities in both hardware and software, shaping the very core of AI technology. It is noteworthy that India generates 20% of the world's data yet hosts only 2% of the world's data centres, with our computing infrastructure comprising less than 2% of the global capacity. This significant discrepancy poses a critical bottleneck that impedes our technological advancement. It is crucial to catalyse a robust strategy that pole vaults India into a leadership position within the global AI supply chain. This approach will not only create more jobs and elevate opportunities for value addition but will also bolster our standing in the global technology landscape. Second, it is crucial to integrate comprehensive AI curriculums within our education system. Our schools, colleges and research institutions must offer robust learning modalities that enable students and researchers to explore and experiment with the fundamentals of AI. This should encompass a wide range of subjects, from mathematics and statistics to machine learning, deep learning, natural language processing, computer vision, reinforcement learning and AI ethics. We must develop curricula that are industry-contextualized, technologically iterative and globally relevant, from K-12 to graduate levels, serving as beacons for educational excellence. Establishing career tracks from the school level to cultivate AI specialists and implementing an AI-first strategy in our Atal Tinkering Labs within the next few years should be taken up in mission mode. It is vital to create a collaborative and competitive ecosystem among educational and research institutions to enhance AI interventions. Initiatives like the FutureSkills PRIME, a partnership between industry leaders and the government, that aim to reskill and upskill approximately 1.4 million employees over the next five years in emerging technology skills are essential and should be actively supported and expanded to address the evolving needs of the workforce amid rapid technological changes. Finally, the continuous development of a robust and smartly targeting social welfare net to aid workforce transition should be prioritized. Furthermore, creating a national employment information monitoring platform that tracks real-time changes in employment across critical regions and key positions will prove invaluable. By providing up-to-date employment status, early warnings and predictive forecasts, we can navigate the ever-changing employment landscape more effectively. This comprehensive approach will ensure that the benefits of AI advancements are widespread and risks are actively mitigated, building a resilient and forward-looking economy. Our steadfast commitment to building a developed India by 2047 is anchored in the principle that no section of society should be left behind in our national journey toward development. As we embrace this ambitious resolve, it is essential to recognize that we are amid an AI era brimming with limitless possibilities. It is vital that our policies set forth clear guiding principles -- our North Star -- and create robust navigation tools for every societal stakeholder. This strategic approach will illuminate the path toward our ambition, ensuring that every individual has the opportunity to both contribute and benefit.