In early September, Nvidia CEO Jensen Huang made a visit to India, announcing collaborative plans for AI infrastructures with Reliance Industries and Tata, as well as re-training Indian engineers to scale up AI capabilities, highlighting India's potential as a huge AI market and talent exporter.
According to Bloomberg, citing multiple sources, during Huang's trip to India, he spoke of re-training entire swaths of India's workforce and building future AI models using Indian data and talent. Huang said that India has data and talents, which makes India one of the potentially largest AI markets in the world, reports Bloomberg.
Bloomberg quoted K. Krishna Moorthy, CEO of the India Electronics and Semiconductor Association (IESA), saying India is rapidly evolving as a market for advanced technologies, adding that as India's digital economy expands, the government is enforcing data security, data privacy, and data localization regulations, which could necessitate the deployment of more than 100,000 GPUs to develop AI cloud infrastructure. Furthermore, as Nvidia cannot sell its most advanced chips to China, which accounts for about 20% of its sales, Nvidia is looking to diversify into India as its hedging strategy.
According to the International Market Analysis Research and Consulting Group estimate, the AI industry in India was valued at US$680.1 million in 2022, and it is expected to experience a CAGR of 33.28% between 2023 and 2028.
Meanwhile, IDC data forecasts that India's AI market is expected to experience a CAGR of 20.2%, growing from US$3.1 billion in 2020 to US$7.8 billion by 2025.
India has established a significant advantage in the field of AI talent. According to a Nasscom survey, India holds the top global rankings regarding the concentration of AI talent and the widespread adoption of AI skills. The extensive and diverse digital talent pool is rapidly upskilling in AI, effectively addressing the demand for AI talent within India and internationally.
According to the Department of Science and Technology of India, the country has 386 of 22,000 PhD-educated researchers worldwide and ranked 10th globally in research, with AI research mostly at institutes, such as the Indian Institutes of Technology, Indian Institutes of Information Technology, and Indian Institutes of Science.