Economic Intelligence Brief: India's AI Strategy Must Prioritize Sector-Specific Models Over Global Imitation

The Economic Survey has issued a strategic directive indicating India's artificial intelligence development must diverge from established global paradigms. Analysis reveals the nation's AI advancement should be anchored in domestic economic realities rather than attempting to replicate unsustainable models prevalent in advanced economies. This represents a fundamental shift in technological strategy, emphasizing practical implementation over theoretical parity. The intelligence suggests India's comparative advantage lies in developing smaller, sector-specific AI models tailored to unique industrial requirements and resource constraints. This approach contrasts sharply with resource-intensive general AI systems dominating Western technological landscapes. The report implies that attempting to mirror foreign AI architectures would create structural vulnerabilities and misallocate critical resources. Instead, the survey advocates for a targeted framework where AI development aligns precisely with India's economic priorities, demographic characteristics, and industrial capabilities. This strategic positioning acknowledges that technological sovereignty requires customized solutions rather than imported methodologies. The directive establishes a clear pathway for India to establish AI leadership through practical applications rather than theoretical benchmarks, potentially creating a new template for emerging economies navigating the AI revolution.