Davos moment goes viral: India's IT minister boldly counters IMF on 'second-tier' AI label

India’s AI preparedness has sparked debate at the World Economic Forum after the International Monetary Fund placed the country outside its top tier of AI-ready nations. Union Minister for Information Technology Ashwini Vaishnaw firmly rejected the assessment, insisting India “clearly” belongs in the first group. Speaking during a WEF panel, Vaishnaw argued that India is making strong progress across all five layers of the AI architecture — applications, models, chips, infrastructure and energy. While IMF chief Kristalina Georgieva named the US, Denmark and Singapore as top performers, she also acknowledged India’s growing strength in AI, driven by its long-standing bet on IT. Vaishnaw said India’s real advantage lies in AI applications and diffusion, positioning it to become the world’s largest supplier of AI-driven services. He stressed that India is prioritising smaller, efficient models over massive systems, delivering real returns on investment. He also cited Stanford rankings that place India among global leaders in AI penetration and talent.