At the NDTV World Summit in Mumbai, Kamath told the audience that India’s ambition in AI should be grounded in applications and services rather than trying to out‑build the giants of the US and China. He argued that the risk capital poured into large‑language‑model research in those markets dwarfs what Indian firms can realistically muster.
Kamath highlighted that Indian companies could carve out a niche in AI inference, leveraging open‑source models and the country’s cheaper electricity and labor. He said a megawatt of power capacity could be set up for 30‑40% less than in Western markets, giving local firms a cost edge.
He went on to suggest that Indian states adopt a more competitive posture, learning from China’s inter‑regional rivalry. "If a chief minister ran a state like a CEO, the region would attract more business," Kamath said, urging the federal government to allow states to retain a larger share of investment returns.
Beyond software, Kamath sees value in Indian consumer brands entering global markets, especially in the US. He believes that the manufacturing cost advantage should not be confined to tech exports alone.
The entrepreneur’s remarks arrive as India prepares its next fiscal budget, where AI policy and state‑level incentives could be revisited. He ends by calling for a review of tax structures that currently disincentivize retail investors in AI‑driven ventures.