Stanford Flags Key Gaps in India's AI Journey Despite Rapid Growth In 2024, India has emerged as the second-largest contributor to AI-related GitHub projects, accounting for 19.9% of global contributions, trailing only the US (23.4 %) and ahead of Europe (19.5 %)

India is no longer a silent observer in the global digital and artificial intelligence (AI) revolution—it's becoming a central force. What was once considered a novel investment destination is now a serious hub for digital innovation, AI talent, and open-source development.

As Melissa Frackman, Founding Partner and CEO of Emphasis Ventures, put it during an old interview video with Nasdaq's Jill Melendrino, "India is at this confluence of its economic growth that is very exciting… It used to be more of a novelty. And now for global investors sitting in Wall Street and otherwise, they're seeing it as a hub."She further added that with a population of 1.4 billion, a growing middle class, and surging domestic consumption, India is poised to become the world's third-largest economy by 2030.

Add to that a young, tech-savvy workforce and an increasingly digital infrastructure, and the case for India's AI future becomes even stronger.

The AI momentum

According to the Stanford University AI Index 2025, India is rapidly gaining ground across several critical dimensions of the global AI landscape. In 2024, it emerged as the second-largest contributor to AI-related GitHub projects, accounting for 19.9 per cent of global contributions, trailing only the US (23.4 per cent) and ahead of Europe (19.5 per cent).

India also leads in AI hiring growth, with a 33.4 per cent year-over-year increase, followed by Brazil and Saudi Arabia. In terms of AI skill penetration, India ranks second globally with a score of 2.5, just behind the US at 2.6—indicating that AI skills among Indian professionals are more than twice as dense as the global average.

The policy push

To accelerate its AI growth trajectory, the Indian government launched the USD 1.25 billion IndiaAI Mission in March 2024—a landmark initiative aimed at strengthening the country's AI ecosystem. The mission focuses on building robust AI compute infrastructure, supporting the development of domestic AI models, and fostering innovation across sectors. Key components include the provision of over 10,000 GPUs for compute access, the creation of a national non-personal data platform, the expansion of AI labs beyond major cities, and a strong emphasis on ethical and inclusive AI practices.

Prime Minister Narendra Modi hailed the initiative as "a giant leap in our journey towards becoming a global leader in AI innovation."

Big tech bets on India

Global tech giants are echoing this optimism. During his recent visit, Microsoft CEO Satya Nadella announced a USD 3 billion investment in AI and cloud infrastructure over the next two years in India. The initiative includes new data centers and plans to train 10 million people in AI skills through the second phase of its ADVANTA(I)GE India program.

"India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country," Nadella said. Microsoft India and South Asia President Puneet Chandok added that the company has helped take AI from "boardrooms to classrooms, and finance to farmers."

Meanwhile, OpenAI CEO Sam Altman, who visited India recently, described the country as the second-largest AI market after the US. "The innovation happening [in India] is really incredible," he remarked, indicating OpenAI's interest in deeper engagement with the Indian ecosystem.

But cracks still show

Despite India's growing momentum in the AI space, the Stanford report underscores several critical gaps that need to be addressed for the country to solidify its position in the global AI hierarchy. In terms of research output, India contributed just 9.2 per cent of global AI publications in 2023, significantly behind China's 23.2 per cent and Europe's 15.2 per cent.

The country also lags in responsible AI research, producing only 42 publications in 2024, compared to 669 from the US and 268 from China. On the investment front, India has attracted USD 11.29 billion in private AI capital since 2013—well below the US (USD 470.9 billion), China (USD 119.3 billion), and the UK (USD 28.2 billion).

Startup activity mirrors this trend, with India generating only 74 new AI startups, whereas the US launched over 1,070, the UK 116, and China 98 in the same timeframe. These shortcomings are largely attributed to India's relatively limited infrastructure, in contrast to the more advanced ecosystems of the US, China, and the UK.

Global benchmark: where India stands

According to Stanford's Global AI Vibrancy Tool 2024, India ranks fourth globally behind the US, China, and the UK. While the US leads in research quality, model development, capital investments, and responsible AI, India excels in areas like skill development, GitHub activity, and AI hiring.

However, its lower scores in governance, policy implementation, and infrastructure pull down its overall rank. The report notes that India's AI success so far has been largely grassroots-led, powered by its developer community and startup talent, rather than top-down policy.