Technology

India Looks to Build Domestic AI Compute While Balancing US Technology Partnership

Published On Wed, 22 Jul 2026
Siddharth Malhotra
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India is working towards strengthening its domestic artificial intelligence (AI) infrastructure while maintaining close technology cooperation with the United States, as global competition over computing power and advanced technologies continues to grow. The rapid expansion of AI has made access to high-performance computing one of the most important factors in technological development. From training advanced AI models to powering defence systems and digital services, countries are investing heavily in computing infrastructure to secure their position in the emerging technology race.

For India, the challenge is to build its own capabilities while continuing to benefit from international partnerships. The country is looking to develop a secure and reliable domestic computing ecosystem that can support startups, researchers, businesses, and government projects. India’s technology sector has grown rapidly over the past decade, but the country still depends significantly on foreign suppliers for advanced chips, specialised processors, and large-scale computing facilities. Building domestic capacity has therefore become a key priority as AI adoption accelerates across industries.

A stronger AI infrastructure network could help India create solutions tailored to its own needs, including applications in healthcare, agriculture, education, financial services, and national security. It could also help Indian companies compete globally by reducing dependence on expensive overseas computing resources.

At the same time, India is closely watching China’s technology development model. Despite ongoing geopolitical differences between New Delhi and Beijing, China’s investments in artificial intelligence, semiconductor manufacturing, research facilities, and technology companies have turned it into one of the world’s leading technology powers.

Indian policymakers believe China’s experience highlights the importance of long-term investment in critical infrastructure and supply chains. However, India’s approach is expected to focus on developing independent capabilities while ensuring technology security and maintaining strategic partnerships. The United States remains a major partner in India’s technology journey. Cooperation between the two countries has expanded in areas such as semiconductor manufacturing, artificial intelligence, defence technology, and critical supply chains. US companies continue to lead in advanced chip design, cloud computing, and AI platforms, making collaboration valuable for India’s growth plans.

India is also aiming to avoid excessive dependence on any single country for crucial technologies. The strategy is focused on creating a balanced ecosystem where international partnerships complement domestic innovation. Technology security has become a major concern worldwide, especially as nations face challenges related to supply chain disruptions, cybersecurity threats, and control over sensitive data. Developing domestic computing infrastructure could give India greater control over important digital systems and reduce risks during global uncertainties.

The growth of AI infrastructure could also benefit India’s startup ecosystem. With better access to computing resources, companies could develop AI models and applications designed specifically for Indian languages, markets, and social challenges. Industry experts believe India’s large pool of engineers, growing digital economy, and expanding technology sector provide a strong foundation. However, continued investment in research, semiconductor production, data centres, and advanced computing will be necessary to turn this potential into global leadership.

India’s emerging technology strategy is therefore focused on balancing openness with self-reliance. While partnerships with countries like the US will remain important, building domestic capabilities will be essential for securing India’s place in the future AI-driven economy. As artificial intelligence becomes a central part of global competition, India’s ability to develop its own computing strength while working with trusted partners could determine its role in the next phase of technological growth.

Disclaimer: This image is taken from AFP.