The release of DeepSeek R1, a revolutionary Chinese AI model, has taken the tech world by storm. With capabilities rivaling OpenAI’s GPT-4, Anthropic’s Claude, and Google’s Gemini, DeepSeek marks a significant step for Chinese AI companies in their global ambition. While Silicon Valley is still grappling with the implications, a critical question has emerged in India: Why hasn’t India, despite having a vast pool of talented software engineers, been able to create AI models on par with those from China and the United States?
The Missing Piece: Government Support and Protected Markets
Indian-origin American author Sadanand Dhume recently raised this very issue on social media, questioning why China is able to develop models like DeepSeek, while India lags behind. The question drew responses from various experts, including an Indian AI professional, known as “GDP,” who works at Amazon.
GDP pointed out that the primary reason India lacks its own AI foundation models is the absence of a protected market, unlike China. In China, the government treats AI development as a national priority, offering significant support to local companies, which gives them a competitive advantage. In contrast, Indian startups face stiff competition from American tech giants, who have the advantage of lower costs and more resources. Without government backing or a strong domestic market to nurture early-stage AI models, Indian companies struggle to grow.
Why India Struggles Despite Its Talent Pool
GDP also highlighted that building Large Language Models (LLMs) like DeepSeek is not the hard part. “The science behind LLMs is actually quite easy,” he explained. The foundational technology, based on Transformer Decoder architecture, has been around since 2017. While there have been advancements in the field, such as flash attention and fine-tuning techniques like PPO/DPO/GRPO, they are relatively minor and readily available through research papers.
India, with its abundance of skilled engineers, has the capability to build LLMs, according to GDP. The real issue lies in the lack of a local market where these engineers can apply their skills and scale their innovations. Without a protected environment to develop and refine their models, Indian companies are overshadowed by better-funded American counterparts.
China’s Advantage: Geopolitics and Government Backing
The AI expert drew a parallel between India’s situation and the absence of tech giants like Google or Facebook originating from the country. “Just like India doesn’t have its own Google or Facebook, it doesn’t have its own AI foundation models,” GDP said. He emphasized that the lack of a protected market means Indian companies are often replaced by cheaper and more efficient American service providers.
On the other hand, China’s government treats AI as a matter of national security and geopolitics. Chinese companies enjoy the benefits of a protected market, allowing them to thrive without the same level of external competition. As a result, China has managed to create AI labs that are on par with OpenAI, with over 10 labs comparable to the US leader and another 50 tier-2 labs.
The Future of AI in China: A Rising Tide
GDP also hinted that DeepSeek is just the beginning of China’s AI revolution. He mentioned several other Chinese AI projects that are poised to make waves, such as Qwen from Alibaba, MiniMax, Kimi, and DuoBao from ByteDance. “Wait till you hear about these,” he teased, indicating that China is only getting started in the AI race.
According to the AI expert, China’s rapid progress is not just a sign of technological advancement, but a direct result of government intervention and a protected market. While India’s software engineers are undoubtedly capable, the lack of strong governmental support and a competitive domestic market for AI innovation leaves Indian companies struggling to compete with China and the US.
Conclusion: A Call for Change
India’s AI ambitions are certainly promising, but the country needs more than just technical skill. To compete on a global scale, India requires a substantial government-backed initiative—something akin to a $3 billion DARPA-style program—to nurture and protect local AI companies. Without this, India risks being left behind in the rapidly advancing AI race, while China and the US continue to dominate the field.
