The world is looking at India to provide a new AI regulation model: Union Minister Ashwini Vaishnaw

In an exclusive interview, the minister discusses why India needs its own foundational model, outlines a roadmap for applying AI at scale, highlights progress on the semiconductor mission, explains why the world is looking at India as the next semiconductor nation, and more

By Naandika Tripathi Forbes India Staff

Published: May 21, 2025 03:12:05 PM IST

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Ashwini Vaishnaw, Minister for Railways, Information & Broadcasting, and Electronics & IT Image: Amit Dave / Reuters

A day after India’s cabinet approved a new semiconductor plant—a joint venture between HCL Group and Taiwan's Foxconn—Minister for Railways, Information & Broadcasting, and Electronics & IT Ashwini Vaishnaw sat down for an interaction with Forbes India. He spoke about two major developments expected before the end of this year: Producing the first made-in-India chip and building the country’s foundational AI (artificial intelligence) model. He says many countries want to regulate AI using only the legal system. On the contrary, India is considering regulating it in a techno-legal way, which means having technological solutions to ensure AI remains within safety parameters. Edited excerpts:

Q. Can you walk us through the progress of India's AI mission, including the development of foundational models?

The AI mission is comprehensive, with multiple parts. Our first objective was to provide high-quality GPU compute power to startups, students, academia and researchers. To achieve this, we created a PPP (public-private partnership) model, empanelling GPU providers and offering their services to those who need them. We have secured 18,000 GPUs in the first round and received applications for over 15,000 GPUs in the second round, exceeding our initial target of 10,000 GPUs.

The second part of our mission involves developing foundational models. We have developed models with 2 billion and 7 billion parameters, as well as smaller models for specific problem sets. Building on this experience, India AI mission approved Sarvam, a startup that will work on building India’s foundational model. Sarvam has made some good progress and is taking a unique approach to developing the model.

The third important part is the AI Safety Institute, where we are taking a techno-legal approach to regulate AI. We have empanelled teams to develop technologies for AI safety, such as detecting deepfakes, biases and unlearning models. This approach allows us to tap into a large talent pool and develop solutions for AI safety.

The fourth part of the initiative focuses on talent development through large programmes at multiple levels. We are working on data annotation, AI app development and real research into AI, primarily with industry and academic institutions.

The fifth and equally important pillar is developing apps that can be used to solve our problems. We are focusing on applications in health care, agriculture, climate and education, and collaborating with international partners like France's Station F to provide opportunities for co-creation. Overall, the AI mission is working well, and we aim to remain among the top five AI nations in terms of capability, use and talent in the world.

Q. Don’t you think Indians have grown accustomed to using global AI models like ChatGPT and Llama, making it challenging to adopt our own foundational model?

This is just the first chapter of AI. A lot more is going to come in the coming years. So, I would not want to close that door by saying, ‘Oh, somebody has created something, so why create a foundational model of our own?’

We need a foundation model for three major reasons. First, our cultural heritage and linguistic strengths must be reflected in the models. Second, biases that exist in many parts of the world need to be kept out when we develop and train the model. Third, we know that these technologies are already gaining strategic importance, and it is important to have our own models because that will give us strategic strength.

Q. How is the progress on the semiconductor mission launched in 2022?

The semiconductor mission encompasses the entire value chain: Design, fabrication, ATMP (assembly, testing, marking and packaging), product and the equipment layer, which includes chemicals, gases and more. We are working on all five layers. For design, we are developing 25 products, systems on chips, with IP rights owned within India. We will share further updates within the next quarter. Our fabrication focus will be on 28nm to 90nm technology, accounting for 60 percent of the semiconductor market. We have received significant interest for ATMP and have five approved units, with four in advanced construction stages. We expect to produce our first made-in-India chip this year. Companies like Applied Materials, LAM Research, Linde, Merck and Air Liquide are also setting up operations in India, establishing a robust ecosystem.

Q. Have the funds allocated for ISM 1.0 (India Semiconductor Mission) been fully utilised?

ISM 1.0 is focusing on execution with a clear and sharp approach. We ensure every detail is taken care of, collaborating with municipal and state governments when bringing in sophisticated equipment to prepare roads beforehand. This attention to detail is crucial to our success.

Also read: Will India have its own AI model?

Q. Will there be more approvals under the India Semiconductor Mission following the recent sixth approval for HCL-Foxconn?

Both the AI mission and semiconductor mission are run by professionals—hardcore technical and finance experts. We don’t interfere with the process; we let them manage it. We also don’t comment on applications or their status, as both missions are run purely by professionals.

Q. Can you elaborate on the recently announced Electronics Component Manufacturing Scheme (ECMS)? How will it help India transition from being a hub for electronics assembly to component manufacturing?

We are taking a methodical approach. We start with finished products, then move to modules, and finally to components and capital equipment. We have already seen large volumes of finished products like mobile phones, laptops and servers being manufactured in India, creating demand for modules and components. To bridge the gap between modules and components, we have introduced the ECMS, a nuanced scheme focussed on key components used across various electronics products.

After two years of detailed study, we have identified components that will add maximum value to our ecosystem. With this scheme, we will have a complete supply chain in the country, including capital equipment for manufacturing these components. We have divided our approach into active components under the semiconductor mission and passive components under the ECMS, covering the entire electronics universe. Our semiconductor mission is well-thought-out, with units approved for display drivers, power electronics, electric vehicles, memory chips and radio frequency chips. A lot of effort has gone into designing this ecosystem, and we are confident it will drive growth in the electronics sector.

Q. Given India's growing appeal as a 'China plus one' destination, what is the plan to further leverage this momentum and drive growth in the electronics sector until 2030?

In the past 10 years, we have built a strong foundation, witnessed growth and seen entrepreneurs achieve a good level of manufacturing. In the next five years, we would like to focus on three key areas. First, we want to go deeper into value chains at the component level. Second, we want to encourage entrepreneurs to set up their own design teams, enabling them to innovate. Many companies already have significant design teams, with some having 200 engineers, others 50, and a few even having 5,000 engineers. This strength will take us to the next level in the electronics sector. Third, we want to focus on materials. As I mentioned earlier, the progression goes from finished goods to modules, components and equipment that manufacture components. The next step is materials. In the coming five years, we should focus on getting into materials, taking our electronics sector to new heights.

Q. How can AI be leveraged to benefit India’s vast population and ensure inclusive access to its benefits?

Applications of AI need to be seen from a sectoral perspective. For example, in weather forecasting, AI models can better simulate atmospheric phenomena, predicting weather events with greater accuracy in terms of intensity, localisation and duration. This is an example of solving problems at a population scale, which is how we should approach AI from a public perspective. There are multiple uses of AI, such as individual CEOs using it for various purposes, the creative industry leveraging it to produce engaging content and the industrial world utilising it for predictive maintenance and other applications. The government's focus should be on promoting AI uses that benefit society, industry and the economy.

Q. Regarding the techno-legal approach you mentioned for regulating AI, is there a model that already exists?

The world is looking at India as a potential leader in developing this new model, in contrast to the purely legal approach followed in some geographies. India believes that AI safety is best ensured through developing technologies that help keep AI safe. Technical solutions will augment legal provisions. A purely legal approach to protecting society from the harms that might come with the misuse of AI will likely not be as effective as a techno-legal aproach.