Rajat Khare on How India Can Lead the Global AI Revolution by Retaining Its Talent

India has the potential to become a major force in artificial intelligence (AI), but achieving that ambition will require more than advanced computing infrastructure and a growing technology sector. Retaining skilled professionals, strengthening research opportunities, and supporting homegrown innovation will be equally important. Venture capitalist Rajat Khare, founder of Luxembourg-based investment firm Boundary Holding, highlights brain drain as a critical challenge India must address to realize its AI ambitions.

India's AI Ambitions Depend on Homegrown Talent

As artificial intelligence reshapes industries worldwide, India has an opportunity to translate its strong engineering and scientific talent base into technological leadership. However, many highly skilled Indian professionals continue to pursue careers overseas, where they may find better compensation, advanced research facilities, and greater access to funding.

Roughly 15% of the world's AI talent is attributed to India, yet a significant portion of these professionals work outside the country. “This abundance is not serving India’s technological interests as it ideally should” says Rajat Khare a venture capitalist and the founder of Boundary Holding, a Luxembourg-based Investment firm.

The challenge is not simply producing more engineers and data scientists. India must also create an environment in which researchers, entrepreneurs, and technology specialists can develop ambitious ideas, access resources, and build globally competitive businesses without having to relocate.

Stronger collaboration between universities, research institutions, established businesses, and deep-tech startups could help bridge this gap.

The Emergence of India's Homegrown AI Ecosystem

India's expanding digital infrastructure provides a strong foundation for developing indigenous AI capabilities. The country's efforts to build a homegrown large language model (LLM) reflect a broader ambition to participate in the development of advanced AI technologies rather than depend entirely on solutions created elsewhere.

The initiative has been associated with access to more than 18,600 GPUs, highlighting the importance of computing infrastructure in training and developing sophisticated AI systems.

However, India's opportunity extends beyond matching the capabilities of international AI platforms. Its distinctive advantage lies in building technology that responds to the country's linguistic diversity, social needs, and regional realities.

With 22 officially scheduled languages and hundreds of dialects, India presents a unique environment for developing multilingual AI systems. These technologies could help people interact with digital services in their preferred languages, expanding access to education, healthcare information, public services, and business tools.

Realizing this opportunity will require skilled researchers who understand machine learning, language processing, data science, and the cultural contexts in which AI systems operate.

Why Indian AI Professionals Choose Opportunities Abroad

India's technology talent pool is substantial, but talent alone does not guarantee innovation. Researchers also need well-funded laboratories, competitive compensation, access to advanced equipment, and opportunities to work on challenging projects.

In some cases, limited research funding and weak connections between academia and industry make it difficult to turn promising ideas into commercially viable technologies. Meanwhile, international technology companies and research laboratories can offer attractive career paths and greater financial incentives.

Rajat Khare points out this disconnect needs urgent repair: “India’s tech talent pool is one of its most significant assets, but more and more talent is leaving for better returns.”

Addressing this issue requires a coordinated approach. Universities need stronger links with industry, private companies should invest more actively in research and development, and policymakers must make it easier for emerging technologies to move from the laboratory into real-world applications.

Retaining talent should not mean restricting professionals from pursuing international opportunities. Instead, India can make itself a more attractive place to conduct research, establish companies, and develop technologies with global relevance.

Four Priorities for Strengthening India's AI Talent Ecosystem

India can take several practical steps to encourage innovation and create better opportunities for its technology professionals.

1. Expand AI Research Funding

Greater investment in research infrastructure can help universities and independent research institutions develop advanced AI capabilities. Establishing centres of excellence in tier-2 cities, alongside existing technology hubs, could broaden access to research opportunities and encourage innovation across the country.

2. Create Competitive Career Opportunities

AI fellowships, doctoral research grants, industry-sponsored research programmes, and attractive compensation packages could encourage talented professionals to pursue long-term careers in India. Researchers also need access to high-quality computing resources, mentorship, and opportunities to publish and commercialize their work.

3. Encourage Deep-Tech Entrepreneurship

Deep-tech startups can turn scientific discoveries into practical products and services. Supporting AI-focused ventures through venture capital, research partnerships, incubation programmes, and early-stage funding can create new career opportunities while helping innovative businesses scale.

Investment in these companies is particularly important in areas where AI can address India's specific challenges, including agriculture, manufacturing, healthcare, logistics, and language accessibility.

4. Strengthen International Research Collaboration

India can benefit from the expertise of researchers and technology professionals working overseas. Partnerships with international universities, collaborative research programmes, visiting fellowships, and remote participation in national projects can help connect global expertise with domestic innovation.

Such initiatives would enable Indian-origin researchers to contribute to the country's AI ecosystem even when they continue to work abroad.

Multilingual AI Could Become India's Competitive Advantage

India's linguistic diversity offers an opportunity to develop AI systems designed for a wider range of users than those served by many existing digital platforms.

An AI system capable of understanding Hindi, Tamil, Bengali, Telugu, Marathi, and other Indian languages must do more than translate words accurately. It should also account for regional expressions, cultural context, and differences in how people communicate.

Such capabilities could make digital services more accessible to rural communities, small businesses, students, and people who are less comfortable using English-language interfaces.

For businesses, multilingual AI could open new markets and improve customer interactions. For public institutions, it could help make information and digital services more accessible. For researchers, it presents opportunities to develop language technologies that address challenges relevant to multilingual societies worldwide.

Developing these systems at scale will require investment in language datasets, computing infrastructure, specialist research, and responsible AI practices. Retaining and attracting skilled professionals will therefore be essential to turning India's linguistic advantage into a sustainable technological strength.

A Global Opportunity for India's AI Future

India's growing economy and expanding technology sector create opportunities to build a more competitive research and innovation ecosystem. The country's ambitions on the international AI stage, including its plans for global AI engagement in 2026, provide an opportunity to demonstrate progress in research, infrastructure, and responsible technology development.

Khare notes that “India’s economy is positioned to reach $10 trillion in the near future. That means the opportunities available here will be globally competitive.”

Realizing this potential will depend on whether economic growth translates into meaningful opportunities for researchers, entrepreneurs, and technology professionals. Funding alone will not be sufficient; India must also develop institutions, business partnerships, and career pathways that allow talent to thrive.

For venture capital investors and deep-tech companies, this environment could create opportunities to support technologies that address both domestic needs and international markets.

Retaining Talent Is Essential to India's AI Leadership

India's path toward AI leadership will depend on how effectively it combines its human capital with research funding, computing infrastructure, entrepreneurship, and supportive policies.

Brain drain is not an irreversible trend. By creating competitive research environments, encouraging deep-tech investment, and connecting domestic institutions with global expertise, India can strengthen its ability to develop and commercialize homegrown technologies.

As Rajat Khare puts it, “The government has been actively promoting AI… but the real test will be how well we retain and nurture talent. That will decide whether we lead or follow.”

The opportunity before India is to become more than a source of skilled technology professionals for the global market. It is to build an environment where those professionals can lead research, establish innovative companies, and develop AI solutions with worldwide impact.

Investing in talent today could help determine India's position in the next phase of technological progress.

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