India must act fast to capture AI opportunity, says Nilesh Shah
Nilesh Shah, MD of Kotak Asset Management Company, warns that AI could either unlock unprecedented growth or disrupt India's IT sector, which contributes $350 billion in foreign exchange earnings. Shah suggests India must strategically position itself within the AI value chain, focusing on application-layer innovation and sovereign AI infrastructure.
India's IT ecosystem is at a decisive inflection point due to Artificial Intelligence (AI), with industry veteran Nilesh Shah warning of its potential to either drive growth or disrupt the sector. The IT sector contributes $350 billion in foreign exchange earnings and supports four crore Indians directly or indirectly. Shah suggests India must position itself within the AI value chain, focusing on application-layer innovation like Large Language Models (LLMs). He cites examples of Indian innovation in voice AI, such as Luna and Maya One, as evidence of the country's potential in high-value AI use cases. Building sovereign and secure AI infrastructure is also crucial, with domestic large language model initiatives like Sarvam potentially becoming a trusted alternative. Indian IT firms could pivot towards enterprise AI, but execution will require significant efforts.
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