Ashwini Vaishnaw at Davos: India’s True AI Strength Shines in 5 Key Areas, Not “Second Tier” as IMF Suggested

At the World Economic Forum in Davos, India made its presence felt on the global AI stage. When the International Monetary Fund (IMF) ranked India in the so-called “second group” of AI powers, IT Minister Ashwini Vaishnaw delivered a firm rebuttal, emphasizing that India is actually among the top three countries in AI readiness. From chips to apps, India’s AI ecosystem is expanding across five strategic levels, demonstrating strength far beyond what the IMF ranking suggested.

IMF’s Outdated Assessment vs. India’s Reality

Addressing IMF Chief Kristalina Georgieva, Vaishnaw questioned the methodology of the ranking, calling it outdated and disconnected from reality. Citing Stanford’s Global AI Readiness Report, he highlighted that India ranks third in the world for AI preparedness.

India is not just adopting AI; it is building its own comprehensive ecosystem that spans:

1. Applications – Practical AI solutions for industries and citizens
2. Models – AI models tailored for real-world problem solving
3. Chips – Indigenous AI hardware development
4. Infrastructure – Foundational systems to support AI deployment
5. Energy – Sustainable power solutions for AI operations

Vaishnaw stressed that India is creating the structural backbone of AI for the future, rather than merely showcasing flashy technology.

Solving Real-World Problems, Not Just Creating Hype

The minister emphasized that AI’s true power lies in solving everyday challenges, not in building large models for display. According to Vaishnaw, models with 20–50 billion parameters are sufficient for addressing the majority of practical business and societal problems. India is already deploying such models across healthcare, education, agriculture, and business services, aiming to boost productivity and simplify life for ordinary citizens.

India’s Independent Path in AI

Vaishnaw clarified that India is not aligning with any particular global bloc like the U.S. or China. Instead, the country is charting its own independent and responsible AI course. Leveraging the deep understanding of local business processes, Indian companies are integrating AI into real-world systems, delivering effective services globally and domestically.

The Bottom Line

India’s AI strategy is practical, holistic, and citizen-focused. With strengths across five levels—from chips to applications—India is proving that it is not a “second-tier” AI nation, but a top-three global player, ready to lead responsibly in the next wave of technological innovation.