Technology · India Bureau
India Should Focus On AI Applications Rather Than Base Models: Kamath
Nikhil Kamath argued that India's technology sector need not compete directly with the US and China in developing foundational artificial intelligence models, instead advocating a strategic pivot toward AI applications and deployment.
LSN India ·

Speaking at the NDTV World Summit 2026, the Indian technology entrepreneur outlined a pragmatic approach to artificial intelligence development, suggesting that India's resources and capabilities may be better deployed in building applications and services that leverage existing models rather than pursuing expensive foundational AI research.
Kamath highlighted the substantial capital requirements and technical expertise needed to develop advanced large language models and other base AI systems, noting that the competitive landscape in this space is already dominated by well-funded entities in the United States and China. He emphasized that attempting to replicate these efforts could prove economically inefficient for India.
Instead, the entrepreneur advocated for India to concentrate on developing domain-specific AI solutions tailored to local needs across sectors such as healthcare, agriculture, education, and financial services. Such applications could address pressing challenges while creating significant economic value, he suggested.
This perspective reflects a broader strategic conversation within India's technology sector about how the country can establish itself as a meaningful player in the global AI economy without necessarily competing across all layers of the technology stack. The approach aligns with emerging global trends where smaller markets and emerging economies focus on specialized applications and implementation expertise.
Photo: Zerodha co-founder Nikhil Kamath at the Young Entrepreneur Awards, March 2015. Brian452 via Wikimedia Commons (CC BY-SA 4.0).