RT team
India must focus on cost-effective approaches to advance AI development, said Mohandas Pai, former Infosys CFO and chairman of Aarin Capital, at the TiEcon Mumbai 2025 event. Highlighting China’s DeepSeek as an example, Pai noted their success in reducing computing requirements by 75%, emphasizing that India lacks the financial capacity to invest billions annually in AI R&D.
Instead of competing with general-purpose AI like ChatGPT or DeepSeek, Pai advocated for creating domain-specific large language models (LLMs) in sectors such as financial services, healthcare, and high-tech manufacturing. He believes this targeted approach can establish India as a global digital leader within the next decade.
Pai underlined AI’s transformative potential in accelerating innovation cycles by automating routine tasks like search, reasoning, and model creation. He proposed prioritizing five technology areas: AI and machine learning, robotics, hyper quantum computing, biogenomics, and high-tech manufacturing. He urged public investment of $1 billion annually in each, alongside collaboration among engineering schools and industries.
Additionally, Pai called for reforms to improve India’s ease of doing business and attract foreign capital. Citing challenges with extensive bureaucracy, he emphasized the need for regulatory clarity and exemptions to support startups. He criticized policies deterring foreign investments, noting a sharp decline in net FDI, despite a 20.6% increase in gross inflows in 2024.
Pai stressed the urgency of streamlining processes to draw international funds, arguing that enabling capital inflow is crucial for India’s economic growth and innovation landscape.
