The Deep-Tech dilemma of India’s AI Mission
From boardroom debates to coffee breaks, tech talent continue to be central to many discussions and on everyone’s radar. As India enjoys a notable inflection point in its technological journey, driven by rapid digital transformation across key sectors like finance, healthcare, manufacturing, energy and more, demand for advanced deep-tech expertise continues. With one of the largest and youngest workforces in the world, India faces both a challenge and an opportunity. The challenge lies in closing the significant skill gap and elevating employability standards, while the opportunity is in positioning India as a global hub for deep-tech talent through strategic interventions. In this journey, bridging the skill gap will be non-negotiable in determining India's competitiveness on the global stage.
The intent is clear. The 2025 Union Budget's allocation of ₹2,000 crore for AI and R&D, alongside ₹400 crore for the Atal Innovation Mission, underscores the government's commitment to fostering an AI-literate nation. This supports the larger momentum of the $1.25 billion "IndiaAI Mission." For tech founders, this is a call to action to align with national priorities, drive innovation, and invest in building future-ready talent in their homeland. Hands-on training, stronger collaboration between academic institutions and corporate research initiatives, and industry-aligned curricula are essential to fast-track talent readiness for both domestic and global markets.
At this juncture, we can take pride in our nation’s standing as a global IT powerhouse. Yet it continues to grapple with a substantial skill gap in critical areas such as artificial intelligence, machine learning, cloud computing, clean energy, cyber security, and advanced manufacturing amongst others. As AI moves from concept to research to commercialization, the shortage of specialized talent like data scientists, machine learning engineers and AI ethics experts has become increasingly evident. This is because, despite producing millions of graduates each year, a significant portion of this talent pool lacks the specialized skills or the ability to thrive in today’s technology-driven landscape. The challenge is evident from the fact that India has fewer than 2,000 senior AI engineers equipped to develop core AI technologies, highlighting a crucial gap in specialized expertise. While the National Education Policy (NEP) aims to address systemic issues within the traditional education framework from a long-term perspective, the urgency around the deep-tech skill gap requires more actions than concepts.
Another pressing challenge is talent retention. India’s top deep-tech talent often seeks opportunities abroad, underscoring the need to not only nurture but also create lucrative career paths that encourage professionals to build their futures within India. Like its unique positioning in the IT sector, India has the potential to emerge as a global hub for deep-tech talent. Recent corporate investments of $3.2 billion by Microsoft stands as a strong testament to the unparalleled opportunities India can enjoy in the near future. As we move ahead, modernizing education systems to incorporate specialized and advanced technological skills will need constant intervention. Ensuring access and inclusivity is equally important, as bridging the digital divide will enable diverse populations to tap into deep-tech opportunities. Encouragingly, emerging markets like Jaipur, Kolkata, Mysuru, Kakinada and Bhubaneshwar are showing promise in developing deep-tech capabilities and we have experienced these ourselves in few markets. Lastly, given the rapid evolution of deep-tech sectors, creating a culture of lifelong learning at both institutional and individual levels is vital for maintaining sustained competence in the global landscape.
With a bold $5 billion AI investment plan last year, India has embarked on a new course in its AI journey, focusing on advancing research, developing scalable applications, and establishing AI-focused innovation hubs. This aligns with India's ambition to strengthen its global positioning from tech talent perspective. Backed by consistent budgetary support and strategic policy interventions, these initiatives reflect not just intent but a clear vision to drive significant progress in this space. Given the rapid pace of change, addressing these challenges requires both short-term and long-term approach. Therefore, closing the skill gap is no longer just an educational concern; it has become an economic imperative, which has a direct influence on shaping India’s global standing.
While the path ahead may look complex and demanding, the potential outcomes are encouraging, shaping the vision of a new India we all aspire to build.
Anuj Khurana
Anuj Khurana is Co-Founder and CEO at Anaptyss.
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