Artificial intelligence in India. The Artificial Intelligence (AI) market in India is projected to reach $8 billion by 2025, growing at a compound annual growth rate (CAGR) of over 40% from 2020 to 2025. This growth is part of the broader AI boom, a global period of rapid technological advancements starting in the late 2010s and gaining prominence in the early 2020s. Globally, breakthroughs in protein folding by Google DeepMind and the rise of generative AI models from OpenAI have defined this era. In India, the development of AI has been similarly transformative, with applications in healthcare, finance, and education, bolstered by government initiatives like NITI Aayog's 2018 National Strategy for Artificial Intelligence.

While AI presents significant opportunities for economic growth and social development in India, challenges such as data privacy concerns, skill shortages, and ethical considerations need to be addressed for responsible AI deployment.

History

Early days (1960s-1980s) 
The TIFRAC (Tata Institute of Fundamental Research Automatic Calculator) was designed and developed by a team led by Rangaswamy Narasimhan between 1954 and 1960. He worked on pattern recognition from 1961 to 1964 at the University of Illinois Urbana-Champaign's Digital Computer Laboratory. In order to conduct research on database technology, computer networking, computer graphics, and systems software, he and M. G. K. Menon founded the National Centre for Software Development and Computing Techniques. In 1965, he established the Computer Society of India and supervised the initial research work on AI at Tata Institute of Fundamental Research. Jagdish Lal launched the first computer science program in 1976 at Motilal Nehru Regional Engineering College. H. K. Kesavan from the University of Waterloo and Vaidyeswaran Rajaraman from the University of Wisconsin–Madison joined the IIT Kanpur Electrical Engineering Department in 1963–1964 as Assistant Professor and Head of Department, respectively. H.N. Mahabala, who was employed at Bendix Corporation's Computer Division, joined the department in 1965. He previously worked with Marvin Minsky. The IIT Kanpur Computer Center was led by H. K. Kesavan, with Vaidyeswaran Rajaraman serving as his deputy. Kesavan informally permitted Rajaraman and Mahabala to introduce artificial intelligence into computer science classes. The computer science program was approved by IIT Kanpur in 1971 and split out from the electrical engineering department. In 1973, an IBM System/370 Model 155 was installed at IIT Madras. John McCarthy, head of the Artificial Intelligence Laboratory at Stanford University visited IIT Kanpur in 1971. He donated PDP-1 with a time-sharing operating system. During the 1970s, the balance of payments deficit in India restricted import of computers. The Department of Computer Science and Automation at the Indian Institute of Science established in 1969, played an important role in nurturing the development of data science and artificial intelligence in India. First course on AI was introduced in 1970's by G. Krishna. B. L. Deekshatulu introduced the first course on pattern recognition in early 1970s.

Foundation

1980s 
In the 1980s, the Indian Statistical Institute's Optical Character Recognition Project was one of the country's first attempts at studying artificial intelligence and machine learning. OCR technology has benefited greatly from the work of ISI's Computer Vision and Pattern Recognition Unit, which is headed by Bidyut Baran Chaudhuri. He also contributed in the development of computer vision and digital image processing. As part of the Indian Fifth Generation Computer Systems Research Programme, the Department of Electronics, with support from the United Nations Development Programme, initiated the Knowledge Based Computer Systems Project in 1986, marking the beginning of India's first major AI research program. Prime Minister Rajiv Gandhi requested that the Department of Electronics and IISc to initiate the Parallel Processing Project in 1986–1987. The Center for Development of Advanced Computing eventually joined those efforts. IIT Madras was selected to develop system diagnosis, ISI for image processing, National Centre for Software Technology for natural language processing and TIFR for speech processing.

In 1987, the proposal of N. Seshagiri, Director General of the National Informatics Centre for the prototype development of supercomputer was cleared. Negotiations for a Cray supercomputer were underway between the Reagan administration and the Rajiv Gandhi government. US Defense Secretaries Frank Carlucci and Caspar Weinberger visited New Delhi after the US approved the transfer in 1988. The sale of a lower-end XMP-14 supercomputer was permitted in lieu of the Cray XMP-24 supercomputer due to security concerns. The Center for Development of Advanced Computing was formally established in March 1988 by the Union Ministry of Communications and Information Technology (previously the Ministry of IT) within the Department of Information Technology (formerly the Department of Electronics) in response to a recommendation made to the Prime Minister by the Scientific Advisory Council. The National Initiative in Supercomputing, which produced the PARAM series, was led by Vijay P. Bhatkar. For the first ten years, supercomputing and Indian language computing were the two main focus areas. In order to meet the needs in a number of domains, including network and internet software, real-time systems, artificial intelligence, and NLP, C-DAC has expanded its operations.

Under the direction of Professor KV Ramakrishnamacharyulu from National Sanskrit University and Professor Rajeev Sangal from the International Institute of Information Technology, Hyderabad, the Akshar Bharati Research Group was established in 1984 with support from IIT Kanpur and the University of Hyderabad for computational processing of Indian languages. They focused on computational linguistics, NLP with ontological database systems, and Indian language/translation theories with linguistic tradition.

1990s 
From IIT Kanpur, Mohan Tambe joined C-DAC in the 1990s to work on Graphics and Intelligence based Script Technology (GIST), which addressed the challenge of adapting personal computer software based on Latin script to Devanagiri and a number of other Indian language scripts. He was previously working on the Machine Translation for Indian languages Project. Within C-DAC, he established the GIST group. The technology was expanded to encompass NLP, artificial intelligence-based machine-aided language learning and translation, multimedia and multilingual computing solutions, and more. GIST resulted in the creation of G-CLASS (GIST cross language search plug-ins suite), a cross-language search engine. The Applied Artificial Intelligence Group at C-DAC has developed some basic and novel applications in the field of NLP, including machine translation, information extraction/retrieval, automatic summarization, speech recognition, text-to-speech synthesis, intelligent language teaching, and natural language-based document management with Decision Support Systems. These applications are the result of the foundation laid by previous language technology activities. Software firms in the Indian private sector began looking into AI applications, mostly in the area of business process automation.

In order to allow machines to read, comprehend, and interpret human languages, the Language Technologies Research Center was founded in October 1999 at the International Institute of Information Technology, Hyderabad. It focused on the advancements in semantic parsing, information extraction, natural language generation, sentiment analysis, and dialogue systems.

Some of the early AI research in India was driven by societal needs. For example;

 Eklavya, a knowledge-based program created by IIT Madas, helped community health workers deal with toddler illness symptoms by generating systematic case histories, offering basic treatment advice, or indicating when a referral was necessary. 
 The National Centre for Software Technology (NCST) created the Vidya language teaching system, which enhances educational quality through the use of speech-vision processing, ML, and NLP. 
 C-DAC created the Sarani flight-scheduling expert system. 
 TIFR and the Central Electronics Engineering Research Institute created a formant-based speech synthesis system for the Indian Railways. 
 IISc and ISRO built an image processing facility that uses AI and computer vision.

Acceleration phase

2010s 
With an investment of ₹20 crore, Tata Consultancy Services founded the FC Kohli Centre on Intelligent Systems at IIIT Hyderabad in 2015 to conduct research in the fields of robotics, cognitive sciences, neural language processing, and intelligent systems.  

In March 2018, Capillary Technologies and IIT Kharagpur established the Centre of Excellence in Artificial Intelligence Research for financial analytics, industrial automation, digital healthcare, and intelligent transportation systems, with a combined investment of ₹56.4 million. By March 2019, a second campus at Kukatpallya will open. In June 2018, India unveiled its national AI policy.  

For fundamental research in deep learning, reinforcement learning, network analytics, interpretable machine learning, and domain-aware AI, Bosch established the Robert Bosch Center for Data Science and Artificial Intelligence at IIT Madras in 2019. The center will concentrate its applied research on systems biology, smart cities, manufacturing analytics, financial analytics, and healthcare. Additionally, it is the location of India's largest deep reinforcement learning group.

2020s 
INDIAai, a collaborative initiative of the National E-Government Division and NASSCOM for AI-related advancements, was introduced by Ravi Shankar Prasad on May 30, 2020. In partnership with Intel and the Ministry of Education, the Responsible AI for Youth Program was also introduced to foster the development of AI-related skills. The Nvidia AI Technology Center was founded at IIITH in 2020 with the goal of accelerating AI research and commercialization. It focuses on the application of AI in language comprehension, smart cities, and agriculture.  

The Yardi School of Artificial Intelligence was founded in September 2020 by IIT Delhi to advance research in AI, ML, and data science in the fields of healthcare, materials science, robotics, industry 4.0, weather prediction, and transportation. $10 million was contributed by Yardi Systems' Anant Yardi in 2021 for education, infrastructure and research related activities.   

In 2021, Kotak Mahindra Bank and IISc announced their intention to establish the Kotak-IISc AI-ML Center for research and innovation in fintech, as well as to cultivate the necessary talent pool to satisfy industry demands. 

According to Stanford University's annual AI Index report, India ranked fifth globally in 2022 in terms of investments received by businesses offering AI products and services.  

The Centre for Machine Intelligence and Data Science was officially opened by IIT Bombay on April 28, 2023. 

Prime Minister Narendra Modi addressed international concerns about the negative use of artificial intelligence during a virtual G20 conference hosted by India in November 2023. India invested $1.25 billion (₹10,372 crore) on INDIAai.

National Mission on Interdisciplinary Cyber-Physical Systems 
The mission which has a five-year budget of ₹3,660 crore, was authorized by the Union Cabinet in December 2018 under the Department of Science and Technology. A technological vertical in AI and ML, IoT, data bank and DaaS, data analysis, autonomous systems and robotics, cyber security, and quantum engineering has been assigned to each of the 25 technological innovation hubs that have been formed.

To translate academic research on AI at the proof of concept stage into commercially viable goods and services, IIT Kharagpur established the AI4ICPS Innovation Hub Foundation in 2020. Under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS), the Department of Science and Technology awarded it a grant of ₹170 crore.

International collaboration 
The United States and India expanded their joint cyber training and exercises in 2022 and initiated the Defense Artificial Intelligence Dialogue. According to Cleo Paskal, a non-resident senior fellow at the Foundation for Defense of Democracies, the Indian community has influenced artificial intelligence research and development in the United States for many years. Things are taken to the next level by the Defense Artificial Intelligence Dialogue.

Legislation 

India currently does not have specific laws regulating artificial intelligence (AI). However, the Indian government has introduced several initiatives and guidelines aimed at the responsible development and deployment of AI technologies.

The Indian government has tasked NITI Aayog, its apex public policy think tank, with establishing guidelines and policies for AI. In 2018, NITI Aayog released the National Strategy for Artificial Intelligence, also known as #AIForAll, which focuses on healthcare, agriculture, education, smart cities, and smart mobility.

In 2021, NITI Aayog published the "Principles for Responsible AI," addressing ethical considerations for AI deployment in India. These principles cover system considerations, such as decision-making and accountability, and societal considerations, such as the impact of automation on employment. The second part of this document, "Operationalizing Principles for Responsible AI," released in August 2021, focuses on implementing these ethical principles through regulatory and policy interventions, capacity building, and incentivizing ethical practices.

In 2023, the Indian government enacted the Digital Personal Data Protection Act, which addresses some privacy concerns related to AI platforms. The Ministry of Electronics and Information Technology (MeitY) has also issued advisories requiring platforms to obtain explicit permission before deploying unreliable AI models and to label AI-generated content to prevent misuse.

India is a member of the Global Partnership on Artificial Intelligence (GPAI), which promotes the responsible use of AI through international collaboration. In 2023, the GPAI Summit was held in New Delhi, where experts discussed responsible AI, data governance, and the future of work.

Other Indian agencies, such as the Bureau of Indian Standards (BIS), are also working on AI policies. BIS has established a committee to propose draft standards for AI, focusing on safety, reliability, and ethical considerations.

India has not yet enacted specific AI regulations. However, the government has introduced measures to promote innovation and address ethical concerns and risks associated with AI. These efforts aim to support the growth of India's AI ecosystem and ensure responsible AI deployment.

India has launched an AI Data Bank aimed at fostering innovation and enhancing national security. This initiative is designed to harness the power of artificial intelligence by providing a centralized repository of data that can be utilized across various sectors, including governance, business, healthcare, education, and space exploration. By facilitating access to crucial information, the AI Data Bank will support research and development efforts, stimulate technological advancements, and bolster the country’s security framework. This strategic move underscores India's commitment to leveraging AI for national progress and safeguarding its interests in an increasingly digital world.

Impact

Defence 
A task force for the Strategic Implementation of AI for National Security and Defence was established in February 2018 by the Ministry of Defense's Department of Defence Production. The process of getting the military ready for AI use was started by the MoD in 2019. The Centre for Artificial Intelligence and Robotics was approved to develop AI solutions for signal intelligence to improve intelligence collection and analysis capabilities at a cost of ₹73.9 crore and Energy Harvesting Based Infrared Sensor Network for Automated Human Intrusion Detection (EYESIRa) at a cost of ₹1.8 crore. In 2021, the Indian Army, with assistance from the National Security Council, began operating the Quantum Lab and Artificial Intelligence Center at the Military College of Telecommunication Engineering. With an emphasis on robotics and artificial intelligence, Defence Research and Development Organisation and Indian Institute of Science established the Joint Advanced Technology Programme-Center of Excellence. In 2022, the Indian Navy created an AI Core group and set up a Center of Excellence for AI and Big Data analysis at INS Valsura. Indian Army incubated Artificial Intelligence Offensive Drone Operations Project in partnership with an Indian startup. Tonbo Imaging integrated real-time target identification and Edge AI image processing into MPATGM. During Exercise Dakshin Shakti 2021, the Indian Army integrated AI into its intelligence, surveillance, and reconnaissance architecture to provide a cohesive operational intelligence picture of the battlefield.

In 2022, the Indian government established the Defence Artificial Intelligence Council and the Defence AI Project Agency, and it also published a list of 75 defense-related AI priority projects. MoD earmarked ₹1,000 crore annually till 2026 for capacity building, infrastructure setup, data preparation, and Al project implementation. The Indian Army, the Indian Navy and the Indian Air Force set aside ₹100 crore annually for the development of AI-specific applications. The military is already deploying some AI-enabled projects and equipment. At Air Force Station Rajokri, the IAF Centre of Excellence for Artificial Intelligence was established in 2022 as part of the Unit for Digitization, Automation, Artificial Intelligence, and Application Networking (UDAAN). Swarm drone systems were introduced by the Mechanised Infantry Regiment for offensive operations close to LAC.

Grene Robotics revealed Indrajaal Autonomous Drone Defense Dome. For offensive operations, the military began acquiring AI-enabled UAVs and swarm drones. Bharat Electronics developed AI-enabled audio transcription and analysis software for batlefield communication. Using AI during transport operations, the Indian Army's Research & Development branch patented driver tiredness monitoring system. As part of initial investment, the Indian Armed Forces is investing about $50 million (€47.2 million) yearly on AI, according to Delhi Policy Group think tank. For high altitude logistics at forward outposts, military robots are deployed. Army is developing autonomous combat vehicles, robotic surveillance platforms, and Manned-Unmanned Teaming (MUM-T) solutions as part of the Defence AI roadmap. MCTE is working with the Ministry of Electronics and Information Technology and, Society for Applied Microwave Electronics Engineering & Research, on AI and military-grade chipset. Phase III of AI-enabled space-based surveillance has been authorized.

DRDO Chairman and Secretary of the Department of Defense Research & Development Samir V. Kamat said the agency started concentrating on the potential use of AI in the development of military systems and subsystems. The Indian government intends to leverage the private sector's sizable AI workforce and dual-use technologies for defense by 2026. In order to conduct research on autonomous platforms, improved surveillance, predictive maintenance, and intelligent decision support system, the Indian Army AI Incubation Center was established. Indian Navy launched INS Surat with AI capabilities.

Private sector 
Private businesses are attempting to create smaller, less expensive language models. Examples of these include AI4Bharat's Airawat series, Sarvam AI's OpenHathi series, CoRover.ai's BharatGPT, Tech Mahindra's Indus project, Ola's Krutrim, TWO AI's Sutra series, and SML's  series.

AI companies of India 

The following is a list of notable AI companies of India, along with their corporate headquarters location.

See also 
 HCLTech
 Infosys
 Tata Elxsi

References 

Artificial intelligence
Economy of India