India’s growing ambitions in Artificial Intelligence (AI) took centre stage at the World Economic Forum (WEF) in Davos after a sharp exchange on how the world is ranking countries in the global AI race. During a panel discussion, International Monetary Fund (IMF) chief Kristalina Georgieva reportedly placed India in a lower AI tier compared to the United States and China, sparking a firm response from India’s IT Minister Ashwini Vaishnaw.
Vaishnaw challenged the narrative, citing Stanford’s ranking, which he said places India third worldwide for AI preparedness. He also highlighted India’s rapid progress across the “AI stack” and argued that the country’s biggest strength lies not only in building advanced AI models, but in deploying AI solutions at scale especially in real-world applications where most of the economic value is expected to emerge.
The discussion quickly became one of the most talked-about AI moments at Davos, reflecting the growing global tension around AI leadership, talent, infrastructure, and national competitiveness.
What Happened at Davos: IMF’s AI Tier Comment Sparks Debate
At the World Economic Forum panel, IMF chief Kristalina Georgieva reportedly spoke about global AI leadership and suggested that India sits behind the US and China in AI capability tiers.
While India is widely seen as a rising digital economy, Georgieva’s ranking triggered questions about whether India is truly in the front line of AI innovation or whether it remains a step behind the world’s biggest AI powerhouses.
However, India’s IT Minister Ashwini Vaishnaw pushed back quickly, calling attention to how different reports and frameworks give different outcomes depending on what they measure. According to the image extract, he countered by referencing Stanford’s assessment, which ranks India very strongly on AI readiness.
The moment highlighted a key global issue: AI rankings are not always agreed upon, and countries are now actively challenging the metrics used to judge them.
India’s Counter-Argument: “We’re Third in AI Preparedness,” Vaishnaw Says
Vaishnaw’s response focused on positioning India as a serious contender in AI not just in future potential, but in present readiness.
He emphasised that India has built strong momentum across key AI areas such as:
- Digital infrastructure growth
- Talent availability
- Startup innovation
- Large-scale platforms for citizen services
- Increasing enterprise adoption of AI tools
By citing Stanford’s ranking of India as third globally for AI preparedness, Vaishnaw aimed to reinforce that India is not merely participating in AI transformation it is preparing to lead it through adoption and applied innovation.
Why AI “Applications” Matter More Than Only Building Huge Models
A major highlight of Vaishnaw’s point was India’s strength in AI applications, where he said around 95% of the value lies.
This is a crucial argument in today’s AI economy.
While much global attention goes to building massive AI models like high-cost large language models Vaishnaw suggested India’s strategy is more focused on deployment and usage rather than only creating the biggest models from scratch.
In simplified terms, the message was:
- Building AI is important
- But using AI in real life creates the biggest impact
India’s AI advantage could therefore come from applying AI across:
- Healthcare systems
- Education platforms
- Agriculture decision support
- Public services
- Business operations
- Customer support and regional language solutions
This approach could help India deliver AI benefits at scale, especially across millions of users and small businesses.
India Could Become a Global AI Services Hub, Claims Vaishnaw
Another major statement from Vaishnaw was a strong prediction: India could emerge as the largest AI services supplier globally.
This aligns with India’s established global leadership in IT services, software development, and digital transformation support. The difference now is that the next big wave is expected to be AI-led services from automation and analytics to AI-powered product design and enterprise solutions.
If India successfully scales AI adoption across industries, it could turn into a massive exporter of:
- AI integration services
- AI customer experience solutions
- AI-based software development
- AI data engineering and model deployment
- Enterprise AI consulting
This would strengthen India’s position not just as a technology consumer, but as a technology provider for the world.
$150 Billion AI Infrastructure Investments: The Big Push Behind the Scenes
The exchange at Davos also brought attention to the investment scale needed for AI growth.
Vaishnaw reportedly mentioned $150 billion in infrastructure investments, indicating that the AI race is not only about software, but also about the computing backbone required to power advanced AI.
AI requires huge resources including:
- High-performance computing capacity
- Cloud infrastructure
- Data centres
- AI chips and hardware
- Energy supply reliability
- Secure digital networks
Countries that lead in AI will not just be those with top algorithms they will also be the ones with the strongest compute infrastructure and the ability to support AI development at national scale.
For India, this becomes a critical challenge and opportunity. If the country accelerates AI infrastructure development, it could unlock major growth for enterprises, startups, and government-led digital services.
India’s AI Talent Boom: AI Job Posts Surge by 252%
One of the most striking statistics mentioned was the reported 252% rise in AI job postings, showing how quickly demand for AI skills is exploding in India.
This surge highlights several important trends:
1) Indian companies are hiring AI talent aggressively
From IT services firms to startups and banks, AI roles are expanding rapidly.
2) AI skills are becoming the new career gold
More professionals are shifting to:
- Machine learning
- Data science
- AI engineering
- Prompt engineering
- AI product management
3) India’s workforce is aligning with global demand
If India builds a strong AI workforce, it can supply talent not only domestically but also internationally through global projects.
This hiring boom is also a sign that AI is moving beyond experimentation and becoming a real industry priority.
Real-World Deployment Over “Building From Scratch”: India’s Practical AI Strategy
Unlike some countries focusing heavily on creating the biggest AI models as a national prestige project, India appears to be framing its mission around real-world deployment.
This strategy may be more practical because:
- AI model building is extremely expensive
- Training frontier models requires huge compute power
- AI leadership can also be achieved through product innovation and adoption
- Businesses care about outcomes, not just model size
India’s approach suggests the country wants to win through:
- AI at scale
- AI in services
- AI in public good systems
- AI for productivity and growth
This could help India become globally competitive even while the US and China lead in building the most resource-heavy AI models.
Read More: Google’s Gemini Lands ₹270 Crore IPL Sponsorship Deal, Signals Big AI Push in India
Why AI Rankings Are Becoming Political and Controversial
The Davos debate also shows that AI rankings are no longer academic they are geopolitical.
Today, AI rankings affect:
- Investment confidence
- Global partnerships
- Startup funding sentiment
- Policy trust
- National prestige and influence
But AI readiness can be measured differently. Some rank countries by:
- Research output and patents
- AI model development
- Compute capacity
- Talent pool size
- AI adoption in industry
- Regulation and governance
- Public digital infrastructure
Because different rankings use different metrics, countries may challenge them especially when the stakes are so high.
What This Means for India’s AI Future
The exchange at Davos is not just a headline moment it reflects a larger truth: India is pushing hard to be recognised as a top AI nation.
If India continues its growth in talent, infrastructure, and real-world deployment, it could become one of the strongest global players in AI-driven transformation.
Key areas that could decide India’s AI position:
- Faster AI infrastructure buildout
- Stronger AI research ecosystem
- Support for startups and innovation
- AI education and upskilling at scale
- Trust, safety, and responsible AI policies
- Industry-wide deployment across sectors
The next few years will be crucial as AI shifts from hype to real economic value and India wants to be at the centre of that shift.
India Sends a Clear Message at Davos It Wants a Seat at the AI Top Table
India’s IT Minister Ashwini Vaishnaw’s pushback against the IMF’s AI tier comment at Davos signals a confident message: India does not accept being seen as a second-tier AI player.
By citing strong rankings, highlighting AI applications where most value lies, pointing to a surge in AI jobs, and discussing massive investment needs, India is presenting itself as a country that is building an AI-ready economy focused on impact, scale, and deployment.
As the global AI race intensifies, one thing is clear: India wants to lead not just in technology services, but in the AI era of global digital power.
Read More: India vs New Zealand: Abhishek Sharma Redefines PowerPlay Batting With Historic World Record
