AI Could Be A Y2K Moment For Indian IT Industry: MeitY Secretary

SUMMARY

S Krishnan said that the growth of AI offers an avenue for local software giants to deploy applications for companies globally, and not just India

Krishnan also said that the Centre plans to focus on fostering development of tools on top of existing LLMs as well as building foundational AI models from scratch

The MeitY secretary also said that India needs about 10-12 fabs of “all types” to support broad technological goals, adding that not all such chip units will require “huge investments”

Electronics and IT ministry (MeitY) secretary S Krishnan believes that rapid advancements in the artificial intelligence (AI) ecosystem could be a “Y2K” moment for the Indian IT industry.

Speaking with The Hindu businessline, Krishnan said that the growth of the emerging technology offers an avenue for local software giants to deploy applications for companies globally, and not just India.

For the uninitiated, Y2K refers to the year 2000. As the world rang in the new millennia, IT companies raced ahead of time to address problems that could arise from computers (which used to notate a year by the last two digits) reading 2000 as 1900 due to the “00” notation.

This resulted in Indian IT companies showcasing their technical capabilities and establishing themselves as a major player in the global market.

Noting that the globe is looking at India to disrupt the AI space, Krishnan reportedly underlined that the country’s STEM (science, technology, mathematics, and engineering) talent pool could be leveraged to achieve this.

The MeitY secretary said that the country will follow a three-pronged approach towards AI. He said that the government plans to focus on both developing tools on top of existing LLMs and building foundational AI models from scratch.

Citing Chinese AI company DeepSeek’s R1 model, Krishnan said he believes that the country can build a foundational model frugally, without resorting to resource-guzzling models. He also added that the Centre plans to keenly monitor data movement in the space.

“If you use DeepSeek on an app or through their portal, the data go(es) to China. One Indian company has already deployed it on their servers in India, and they say that when it is deployed on Indian servers, the data stay(s) put in India,” Krishnan said.

Elaborating on the Centre’s push for semiconductors, Krishnan reiterated that the government is planning a follow-up edition of the India Semiconductor Mission (ISM) but didn’t specify a timeline. He added that funds under the first phase of the Mission have already been exhausted for setting up “major fabrication plants”.

The MeitY secretary noted that the country needs about 10-12 fabs of “all types” to support broad technological goals, adding that not all such chip units will require “huge investments”. He added that the Centre aims to use data to improve services and target subsidies effectively while adhering to privacy safeguards.