In May 2025, the quiet confidence in India’s tech ambitions became deafening. As the world reeled from the shock of China’s DeepSeek-V2, a large language model (LLM) reportedly trained on over two trillion tokens at a fraction of Western costs, India unveiled its counter: a domestically built sovereign AI programme, led by deep-tech startup Sarvam AI and a Rs 10,372 crore national AI mission. This move didn’t just signal intent, it marked a new axis in global tech power.

The shockwaves from DeepSeek-V2 continue to ripple through Silicon Valley. Long considered the undisputed leader in AI, the American tech establishment now faces a formidable challenge not only in innovation but also in cost efficiency. “DeepSeek is a wake-up call," conceded a senior executive at a top US AI lab. “Western dominance in AI can no longer be taken for granted." That admission underscores a global inflection point, and India is wasting no time in stepping up.

For decades, India was seen as a back-office player in the global technology chain, strong in software services but lacking in foundational R&D and hardware manufacturing. That is changing rapidly and deliberately. The IndiaAI Mission is the country’s clearest signal yet that it intends to build not just applications, but the underlying models and infrastructure that define technological leadership.

Sarvam AI’s mandate to develop India’s first foundational LLM is not merely about keeping up—it’s about leapfrogging. “This is not just a tech project, it’s a nation-building initiative," said Union IT Minister Ashwini Vaishnaw. “AI must reflect Indian languages, Indian values, and Indian problems."

By focusing on models........

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