Why Can't India Build its Own DeepSeek or ChatGPT? | Vantage with Palki Sharma | N18G

Summary

The video explores the factors hindering India's technological growth, particularly in AI and R&D. It highlights three main challenges: insufficient research funding (with India investing only 0.6% of its GDP in R&D), competition from established American tech giants, and India's lag in key technological sectors like semiconductors. The video compares India's situation to China’s success, which involved early investment in domestic tech and government support. The call to action is clear: India needs a national mission involving government, private sector, and public cooperation to compete on the global stage, especially in cutting-edge technologies like AI.

Takeaways

• 😀 India spends only 0.6% of its GDP on R&D, far behind the US (3.4%) and China (2.4%). This lack of investment in research limits India's ability to innovate.
• 😀 Private sector investment in R&D in India is only 36%, while in the US and China, it exceeds 70%, showing a need for greater private sector participation.
• 😀 The Indian market is not protected from competition by American tech giants, which makes it difficult for homegrown startups to thrive.
• 😀 Indian startups creating alternatives to global giants like Google face fierce competition and struggle to survive due to the dominance of cheaper, well-established foreign products.
• 😀 In contrast, China has a closed market that shields local companies from international competition, providing them room to improve and innovate.
• 😀 India's technological progress is behind in several sectors, including semiconductors, smartphones, and laptops, which puts it at a disadvantage in the AI race.
• 😀 India has limited access to advanced semiconductors, with the US imposing caps on chip exports, hindering the development of AI technologies like ChatGPT.
• 😀 Despite limited access to chips, India plans to source 10,000 chips, similar to the number OpenAI used to train ChatGPT, but faces challenges due to global competition.
• 😀 The US and China both provide strong government support for their tech industries, with the US utilizing its CIA and Pentagon to help foster tech growth.
• 😀 To catch up, India needs a streamlined national mission that coordinates efforts from the government, startups, investors, and citizens to promote innovation and overcome global barriers.

Q & A

Why can't India build companies like Facebook, Google, or ChatGPT?

India faces several challenges in creating homegrown tech giants. The primary factors include insufficient investment in research and development (R&D), the competitive dominance of foreign companies, and India's current lack of technological advancements in key sectors like AI, semiconductors, and mobile technology.

How much does India spend on research and development compared to other countries?

India spends only 0.6% of its GDP on R&D, which is significantly lower than countries like the US (3.4%), China (2.4%), and Israel (5.7%). This limited funding hampers India's ability to make significant technological breakthroughs.

What role does the private sector play in R&D spending in India?

The private sector in India contributes just 36% of the total R&D spending, whereas in countries like China and the US, private companies contribute more than 70%. This indicates a lack of sufficient private investment in technological innovation.

How does the Indian market affect the success of homegrown tech startups?

The Indian market is highly competitive and not protected from international companies. This leaves homegrown startups vulnerable, as foreign companies with established products, such as Google, can easily overpower them. For example, India's social media platform 'Koo' faced challenges against global giants like Twitter.

Why is AI such an important technology for India's future?

AI is considered the cutting edge of technology, and its advancement relies on supporting technologies like semiconductors, which India struggles to produce domestically. AI also requires significant investment in R&D and infrastructure, which is currently lacking in India.

What is the issue with India's access to specialized semiconductors?

India faces limitations in obtaining semiconductors, particularly from companies like Nvidia, which dominate the market. The US government has imposed restrictions on chip sales to India, which hampers the country's ability to build and scale AI technologies. India is only allowed to buy a limited number of chips, further restricting its AI development.

How does China's approach to semiconductors differ from India's?

China has proactively stockpiled semiconductors and invested in domestic chip production, allowing its companies like Huawei to build high-quality, homegrown chips. In contrast, India has not made similar investments in securing a stable supply of semiconductors, leaving it behind in the AI race.

What role did government involvement play in the rise of US tech giants?

The success of US tech giants can be attributed to significant government involvement. The CIA funded early tech ventures, and the Pentagon provided contracts to firms in Silicon Valley, which helped these companies grow and flourish. This level of government support was crucial in the development of the US tech ecosystem.

What does India need to do to foster innovation and compete in the global tech race?

India needs a streamlined national mission that includes coordination between the government, startups, private investors, and the public. Increased investment in R&D, protection for homegrown companies, and a focus on emerging technologies like AI and semiconductors are critical steps to help India compete on the global stage.

How can India's technological challenges be overcome?

India needs a coordinated effort that involves government policy support, private sector investment, and strategic focus on key areas like AI, semiconductors, and R&D. By fostering an environment conducive to innovation, India can catch up and potentially lead in new technologies.