India has pushed back hard after the IMF placed it in a “second group” of global AI powers. IT Minister Ashwini Vaishnaw said the label is unfair and outdated. Speaking at Davos, he said global studies already rank India among the top AI nations. He pointed to Stanford data that places India third in AI readiness.
According to him, India is building AI at every level, from chips to apps. He made it clear that India is not behind. It is moving fast and shaping its own AI path.
India AI Ranking: Why The IMF Label Is Being Challenged
Ashwini Vaishnaw said the IMF’s way of ranking AI nations does not reflect reality. He openly questioned the yardstick used by IMF chief Kristalina Georgieva.
#BREAKING: India’s IT Minister Ashwini Vaishnaw at Davos strongly counters IMF Chief for calling India a second-tier AI power:
“I don’t know what the IMF criteria is but Stanford places India at 3rd in the world for AI preparedness. I don’t think your classification is correct.” pic.twitter.com/z0E5Q9pIWx
— Aditya Raj Kaul (@AdityaRajKaul) January 21, 2026
The Minister said Stanford’s global report places India third in AI preparedness. That, he said, is a trusted and data-backed benchmark.
Vaishnaw stressed that India is not focusing on just one part of AI. The country is building strength across five layers—applications, models, chips, infrastructure, and energy. This means India is not only using AI but also creating the base that powers it.
He also said India is one of the fastest-growing economies in the world, and AI growth is closely tied to that. With strong digital systems, skilled workers, and large-scale use cases, India is ready to lead.
Calling India a “second group” nation, he said, ignores this momentum and the global data that supports it.
India AI Power: Focus On Real Use, Not Just Big Models
Vaishnaw explained that India’s real strength lies in building AI tools that businesses can actually use. He said returns do not come from creating huge AI models alone. Most real-world problems can be solved with models between 20 and 50 billion parameters.
India is now creating a “bouquet” of such models. These are already being used in sectors like healthcare, education, farming, and business services. The goal is simple: use AI to improve daily work and boost productivity.
He added that Indian companies are great at understanding how businesses work. They can plug AI into real systems and solve real problems. This makes India a major supplier of AI services to the world.
With India hosting an AI Summit next month, the country wants to show that it is not choosing sides between the US and China. Instead, it is building its own path, responsible, inclusive, and practical AI for everyone.
