DAVOS, Switzerland — IBM Chairman and Chief Executive Officer Arvind Krishna on Tuesday called on Indian entrepreneurs to strengthen domestic capabilities across semiconductors, artificial intelligence model development, and real-world applications to build what he described as stronger “AI sovereignty” for India.
Speaking at the World Economic Forum annual meeting in Davos, Krishna said smaller, specialized AI models are rapidly narrowing the gap with large foundational models and now account for nearly 95 percent of AI consumption.
“The underlying ecosystem whether it’s semiconductors, model building, or usage applications is where the big breakthroughs will come for India,” Krishna said in remarks to NDTV Profit.
He cited China’s DeepSeek as an example of how progress in artificial intelligence often follows multiple failed attempts, arguing that experimentation and tolerance for failure are essential to innovation. Krishna said India should focus on developing specialized AI systems trained on local datasets, particularly in sectors such as healthcare, defense, and law, to create effective and relevant domestic applications.
Union Information Technology Minister Ashwini Vaishnaw, also speaking at the event, said Indian IT companies have already pivoted toward AI, contributing to increased hiring across the sector. He said India is currently developing 12 AI models, with at least four expected to be launched in the near future.
Vaishnaw said India is prioritizing sector-specific, smaller AI models that can drive productivity gains across industries. He added that the country has attracted about $70 billion in investment for AI-enabling infrastructure, including data centers from global technology companies such as Google and Amazon.
The minister also highlighted progress in India’s semiconductor program, noting that 10 fabrication plants are under construction, three pilot projects are underway, and four units are expected to begin commercial operations in 2026.
Vaishnaw said the government’s recent decision to allow private sector participation in nuclear power generation could help provide the large-scale energy required for advanced AI computing.
A recent report cited at the event pointed to rapid growth in India’s electronics and semiconductor sectors, projecting semiconductor demand to rise from $33 billion in 2022 to $117 billion by 2030.
The government’s Rs 7,280 crore scheme for Sintered Rare Earth Permanent Magnets is expected to support India’s semiconductor ambitions by ensuring secure access to critical materials, further strengthening the country’s push toward technological self-reliance. (Source: IANS)
