“I don't think your classification is correct”: Ashwini Vaishnaw counters India’s 'second-tier AI power' tag by IMF

IT Minister Ashwini Vaishnaw on Tuesday strongly opposed remarks by the IMF leadership that described India as a “second-tier” artificial intelligence power, at the World Economic Forum (WEF) in Davos.

Ashwini Vaishnaw rejects  India’s 'second-tier AI power' tag

He argued that global assessments place India among the world’s leading AI-ready nations.

“I don't know what the IMF criteria is but Stanford places India at 3rd in the world for AI preparedness. I don't think your classification is correct,” Minister Vaishnaw said.

He further said that AI leadership should not be narrowly defined by the ability to build a single large model, but by a country’s capacity to create a full-stack, resilient technology ecosystem.

“Creating a large AI model doesn't give you power as a country,” Ashwini Vaishnaw said.

He also gave insights into India's planning in this domain. The country is focused on building a comprehensive semiconductor ecosystem spanning design, fabrication, packaging, materials, gases and equipment, positioning the country as a dependable global manufacturing and supply-chain hub, Vaishnaw said in a panel discussion at WEF in Davos.

#BREAKING: India’s IT Minister Ashwini Vaishnaw at Davos strongly counters IMF Chief for calling India a second-tier AI power:

“I don't know what the IMF criteria is but Stanford places India at 3rd in the world for AI preparedness. I don't think your classification is correct.” pic.twitter.com/z0E5Q9pIWx

— Aditya Raj Kaul (@AdityaRajKaul) January 21, 2026

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 India’s AI ecosystem

According to him, the global industry increasingly views India as a reliable partner amid shifting geopolitical and economic realities.

He also pointed to growing international confidence in India’s AI ecosystem, citing Google’s expanding commitment, including a $ 15 billion AI data centre in Visakhapatnam, Andhra Pradesh, and deeper partnerships with Indian startups.

Framing India’s strategy within what he described as the “5th Industrial Revolution”, Vaishnaw emphasised that economic viability, not technological spectacle, will determine long-term leadership in AI.

“We have to understand the economics of what he calls the 5th Industrial Revolution,” he said. “The economics of this revolution is going to come from ROI. ROI is going to come from deploying the lowest cost solution to get the highest possible return.”

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