Despite being late to the AI race, the Survey notes that India enters the AI era with formidable strengths that make a bottom-up approach viable. India’s structural challenges, and a note of caution for the IT sectorThe Survey notes that India faces some structural challenges. Most critically, the Survey says that even with abundant domestic capital and strong demand, India’s AI infrastructure expansion would be severely constrained by global GPU supply chains. Story continues below this adLabour displacement vs efficiency: For labour-abundant economies such as India, AI creates a tension between aggregate productivity gains and employment absorption. Open vs closed AI models: The most widely deployed AI models are proprietary and opaque, limiting transparency around their training data, internal logic, and update mechanisms.