Finance Minister Nirmala Sitharaman has urged India to make its next major investment in artificial intelligence infrastructure, saying the country needs more hardware and training capacity to help businesses use the technology effectively.
Speaking at an event organised by IIT Madras in Bengaluru on Saturday, Sitharaman said investment in AI infrastructure and education should continue despite calls from some frontier-model companies to slow the development of increasingly capable systems.
Why AI infrastructure matters
Sitharaman said India needs institutions with teachers who can keep upgrading their skills and continue imparting AI-based knowledge. She also pointed to the need for greater investment in the hardware required to support the sector.
Her argument focused particularly on micro, small and medium enterprises (MSMEs), which she described as the backbone of the economy. These businesses operate across a broad manufacturing range, from pins to aircraft components, and are looking for AI solutions that can improve productivity.
She said India needs trainers who can help MSMEs understand how AI could make them more competitive with businesses in other countries.
Debate over the pace of AI development
Sitharaman's comments came weeks after Dario Amodei, the founder and chief executive officer of Anthropic, called for frontier-model companies to slow the pace at which they improve AI capabilities.
Amodei cited concerns about losing control of AI systems, the misuse of AI in cyberattacks and bioterrorism, and the possibility of severe economic disruption. The position was also supported by Elon Musk, Sam Altman, Satya Nadella and Demis Hassabis.
Sitharaman acknowledged that Western countries have made considerable progress in AI, while arguing that India has also advanced and should not stop investing in the field.
Funding and stock-market listings
Sitharaman also pushed back against the perception that little is happening in India's AI sector. She said one measure used to judge the sector is how many companies are listed on the boards of the National Stock Exchange and the Bombay Stock Exchange.
She said the absence of listed companies can contribute to the view that India has missed the opportunity, while adding that a listing can bring advantages and signal that meaningful activity is taking place.
At the same time, she cautioned that innovators should not be left to find funding on their own. In her view, they need partners who consider support at the initial and later stages, as well as whether a company could eventually benefit from being listed.
Conclusion
Sitharaman's position is that India needs deeper investment in AI hardware, institutional training and business adoption, particularly to help MSMEs improve productivity and compete internationally.
Frequently Asked Questions
Q. What investment did Nirmala Sitharaman call for?
She called for India's next major investment to focus on artificial intelligence infrastructure, including hardware and training.
Q. Why are MSMEs important in the AI discussion?
Sitharaman said MSMEs form the backbone of the economy and want AI solutions that can improve productivity and competitiveness.
Q. What training did Sitharaman say India needs?
She said institutions need teachers who can continually upgrade their skills and impart AI-based knowledge.
Q. Why have some AI leaders called for slower development?
Concerns cited by Dario Amodei include losing control of AI systems, cyberattack and bioterrorism misuse, and severe economic disruption.
Q. Which companies did Sitharaman mention in the listing discussion?
She referred to companies listed on the National Stock Exchange and the Bombay Stock Exchange as one measure of activity in India's AI sector.
