Opinion | Beyond IT: Can India Become the World’s Next AI Hub?
Opinion | Beyond IT: Can India Become the World’s Next AI Hub?
With the AI market poised for exponential growth, India has a unique opportunity to become a global AI hub. But seizing this moment requires strategic investment in skills development, data infrastructure, and fostering a thriving AI ecosystem

So far, we have experienced three industrial revolutions. Now, everyone is talking about the fourth. The First Industrial Revolution started in the 1760s when we transformed our economy from agriculture to industry, with inventions such as spinning machines and looms in the textile sector, along with the mass extraction of coal and the development of the steam engine. After that first revolution, driven by coal, the Second Industrial Revolution revolved around electricity, gas, and crude oil. Most steel and chemical-based products entered the market during this period. The communication sector emerged with the telegraph, which led to the telephone. The automobile sector grew with planes and cars in the Second Industrial Revolution.

After nearly 100 years of the Second Industrial Revolution, the Third Industrial Revolution took place, ushered in by electronic and nuclear technology in the 1970s. Nuclear energy became another source of power generation. This era witnessed a shift from mechanical and analogue electronic technology to digital electronics. In the automobile sector, the focus was on automating existing manufacturing processes.

Nearly four decades after the Third Industrial Revolution, the Fourth Industrial Revolution emerged, building upon its predecessor. Today, we are witnessing unprecedented levels of technological adoption across various fields, including agriculture, healthcare, finance, and defence.

The Fourth Industrial Revolution focuses on enhancing electronic and digital technology breakthroughs, encompassing artificial intelligence (AI), machine learning, the Internet of Things, robotics, 3D printing, quantum computing, nanotechnologies, and autonomous vehicles. Growth driven by the Fourth Industrial Revolution is exponential compared to the linear growth observed in earlier revolutions.

As we navigate the Fourth Industrial Revolution, a shift is occurring in the energy sector, moving from nuclear and thermal power towards renewable energies like solar, wind, and geothermal. However, this era is not solely defined by a shift in power generation methods; it also prioritises the acceleration of digital technology and automation within the energy sector.

Automating the energy sector is crucial, as it enables professionals to increase efficiency, reduce costs, and gain a better understanding of operations. Furthermore, automation solutions in the energy sector enhance safety protocols, streamline processes, and improve analytical capabilities. The Fourth Industrial Revolution is disrupting all sectors across all countries.

AI is one of the major technological revolutions that fundamentally changes the way we live and work. The scale, complexity, and scope of change driven by AI is projected to be more profound than those experienced during previous technological revolutions. AI technology already permeates our lives, from self-driving cars and drones to virtual assistants. The adoption of AI across industries is accelerating at a rate exceeding many predictions. Numerous banks and companies are reducing staffing costs at customer care centres by augmenting them with AI-powered virtual assistants. Additionally, some healthcare providers are developing AI-driven applications to assist with patient treatment.

Another emerging technology in this era is the Internet of Things (IoT). The IoT connects smart devices with each other and other internet-enabled devices. The impact of the IoT is already evident across a wide range of industries, including manufacturing, transportation, healthcare, and agriculture. As the number of internet-connected users increases daily, the IoT plays an increasingly significant role in our daily lives. This growth necessitates the enhancement of data centres across the country to handle the increased operational demands. We also need skilled technocrats to manage Big Data, cloud computing, and AI technologies within these data centres. Furthermore, integrating AI with the IoT can enhance its capabilities by enabling data analysis, predictive insights, automation, and intelligent decision-making.

AI and emerging technologies are being integrated into various fields, including education and public services. India is rapidly adopting AI and ML, ranking first globally in AI skill penetration programmes. Many premier institutions in the country have introduced AI-related courses for STEM students. Institutions such as IIT Madras and IIT Hyderabad have initiated AI-related research in their incubation centres, with support from entities like the IITM Research Park and the i-TIC Foundation, which support startups in this domain.

China currently dominates as the global leader in consumer electronics sales, projected to capture one-fifth of the global market. The US electronics industry is urging India to take swift action to replace China in its supply chains. A study shows that the Chinese electronics market share is expected to decrease by 5 per cent globally, while the Indian electronics market is poised to increase its share by 5 per cent. Currently, China and Hong Kong account for 56 per cent of India’s total imports of electronic and telecom products.

As the Fourth Industrial Revolution evolves, building upon the foundation laid by the Third, India must strive for self-reliance. Reducing dependency is crucial not only for bolstering electronic resilience but also for safeguarding India’s digital and electronic sovereignty in an increasingly interconnected world.

Alongside digital technology, AI technology is also experiencing rapid global growth. Projections indicate that the AI market size is set to reach $185 billion in 2024, with an anticipated surge to $830 billion by 2030. As India is already a leader in the IT and service sectors, a focused push towards AI could position India as a game changer in AI technology over the next decade.

The author is Assistant Professor, IIITDM Kurnool and Visiting Fellow, India Foundation, New Delhi. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.

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