The Observer Research Foundation has released a 134-page white paper, “AI for India: Identifying Future Directions”, arguing that India can shift from being a large-scale adopter to a global shaper of artificial-intelligence technologies. Drawing on fresh data from venture-capital firm BOND, the study notes that AI could add US$15.7 trillion to global GDP by 2030, with India already hosting the largest share of ChatGPT’s mobile users and ranking third for DeepSeek. Eight structural trends underpin the report’s analysis, including the rise of ‘sovereign AI’, soaring demand for compute power, and rapid expansion of data-centre capacity. To close the gap with the United States and China, the authors call for accelerated investment in indigenous chips, expansion of domestic cloud infrastructure, and creation of large language models trained on local languages and datasets. Policy recommendations align with ongoing government moves to deploy 18,000 subsidised GPU servers and establish a Rs10,000-crore fund aimed at securing 50,000 GPUs. The report also points to Microsoft’s planned US$3 billion investment in Indian AI and cloud facilities as evidence that international capital is ready to scale local capacity. On human capital, the paper cites estimates that AI could generate 2.3 million jobs in India by 2027 and urges universities and industry to broaden specialised training programmes. It further highlights satellite-internet roll-outs and renewable-powered data centres as opportunities to extend AI benefits to rural areas while containing energy costs. Overall, ORF concludes that India’s large consumer base, expanding developer ecosystem and evolving regulatory framework give the country a near-term window to build sovereign capabilities and shape global norms for responsible AI deployment.