The DeepSeek AI system that has taken the world by storm has once again pitted the two superpowers, the US and China, against each other. This new age arms race, like the AI race, has also brought to the standing of India and where it stands in the gold rush of the new technology.
While India has some big names in Tech in the form of TCS, Infosys, Wipro and HCL, AI and tech innovation have not really been the forte of a lot of companies in India.
India and China Were Once Equal
Looking at this very fact, Zerodha's Nithin Kamath shared his thoughts in the recent development. In his post on X, Kamath said, "In the 1960s-1970s, India and China had roughly the same per capita GDP. They started their reforms in the 1980s, and by 1990, they had overtaken our per capita GDP. Say what you will about the differences in our worldviews and economic models, but their scientific and technological progress is undeniable across disciplines—DeepSeek is just the latest example."
Jugaad Mentality
Addressing the fundamental problems in the approach followed by Indians, Kamath further added, "I think the problem that has always plagued India is short-termism. Problems are typically addressed through a patchwork or the Jugaad mentality."
"This is true when it comes to business, politics, regulatory approaches, etc. Many problems that require focused long-term thinking instead get band-aid fixes. This is not to say that we haven't made progress. In my own lifetime, we have come a long way, but not nearly enough.", added Kamath.
In the 1960s-1970s, India and China had roughly the same per capita GDP. They started their reforms in the 1980s, and by 1990, they had overtaken our per capita GDP. Say what you will about the differences in our worldviews and economic models, but their scientific and… pic.twitter.com/SSddVpEoOB
— Nithin Kamath (@Nithin0dha) January 29, 2025
Being Mediocre is Not An Option
Further dissecting the issues the Zerodha founder gave an example and said, "For example, you can’t just buy GPUs and expect Indians to create groundbreaking AI applications. Without the right talent and an enabling ecosystem that facilitates innovation, all the GPUs in the world will be pointless."
According to him, India needs to exigently start building research capabilities.
While India does produce great researchers, India does not seem to offer a conducive environment for them, which is why the majority of them go to the US.
"Again, this is not something that will show results instantly. In the case of China, it was 2 decades at the bare minimum focusing just on research. If we start focusing on building our research and scientific capabilities, we will hopefully see results in 5 to 10 years.", said Kamath.
This is all the more important in the world that AI will shape where being mediocre won't be an option.
DeepSeek AI
DeepSeek AI is an China-based AI system founded by Liang Wenfeng. The company showcased immense capabilities, matching its American rivals, with fewer chips, and smaller data sets. The exposure of this AI spooked American markets and investors earlier this week, hurting companies like Nvidia, AMD and Microsoft.