Indian IT Giants Should Re-Invest Profits In R&D Like Google, Microsoft: IndiaAI Mission Chief

India's IT giants like must deploy their profit pools to develop breakthrough technologies just like US tech majors Microsoft and Google do, a senior bureaucrat who heads the Indian government's artificial intelligence (AI) programme said on March 20.

“While India's IT giants have substantial businesses, there is no reason they shouldn't be investing in cutting-edge research. Globally, we frequently hear about Microsoft research and Google research, but we must also strive for TCS research—where leading Indian IT firms reinvest their earnings into developing breakthrough technologies and supporting startups willing to take risks.”, MeitY Addtional Secretary and IndiaAI Mission chief Abhishek Singh said.

He added that it is time for established IT companies to step up, collaborate, and contribute to building world-class innovations.

There is an ongoing debate within the IndiaAI ecosystem about whether the country should prioritize Large Language Models (LLMs) or Small Language Models (SLMs). Addressing this, the IndiaAI chief clarified, “The call for proposal has both LLMs and SLMs and it is not this or that. We have to have both LLMs and several SLMs as well. In fact we have received more applications for building SLMs than LLMs.”

Further on boosting the IndiaAI ecosystem, Singh said, “A consensus emerged that rather than relying solely on grants, we should implement a Fund of Funds model—a co-investment mechanism designed to amplify funding impact. For instance, if we invest in thousands of crores, we aim to generate value exceeding ₹10,000 crores through strategic financial leveraging.”

Recognising the commendable efforts by Indian startups, and noted, “Several Indian startups are actively contributing to foundation models, and we are confident that a homegrown research institution or startup will be among the first to develop a truly Indian AI model.”

IndiaAI Chief was speaking at the NASSCOM Global Confluence 2025: Forging Global Alliances for Tech Leadership on March 20 in New Delhi. 

With the IndiaAI Mission gaining momentum, the government is set to collaborate with academic institutions, research organizations, and industry leaders to accelerate AI adoption and innovation.