Why India Can Lead the AI World: Rajat Khare on Brain Drain

Dec 26, 2025 at 11:57 am by bloggerpaula


Rajat Khare’s Vision for India’s AI Future

As India starts developing its large language model (LLM), Rajat Khare, the founder of Boundary Holding, stresses the necessity of fostering local AI talent. He feels that India is just about to become an international AI giant, but only if it can solve the long-standing problem of brain drain.


India’s Role in the Global AI Transition

The globe is shifting toward a new technology age where Artificial Intelligence leads. India, backed by its vast army of engineers, data scientists, and IT professionals, has all the required resources to be at the forefront of this revolution. However, around 15% of the world's AI workforce—a considerable part of this talent—are located outside India.


Khare opines that this scenario is unfavorable to India:


“This wealth is not benefiting India’s tech sector as it should,” declares Rajat Khare, a venture capitalist and founder of Boundary Holding, which is a deep-tech investment firm in Luxembourg.


Reasons for Exodus of Indian AI Professionals

Every year, a large number of highly qualified Indian professionals immigrate to other countries, in search of better research facilities, higher salaries, and global visibility. While this has been historically maintaining the flow of innovations in foreign markets, it has also weakened India's capacity to build up its own innovations.


Rajat Khare," says that the challenge faced by Germany is non-inevitable activity, but a policy and infrastructure gap that India can bridge by: 


  • Developing a collaborative network between universities and industries 


  • Giving more subsidies for research in AI and deep-tech area 


  • Making a stimulating ecosystem for innovators and researchers



“India's technical skilled manpower is one of the largest benefits for the country, nevertheless a large portion of it is migrating, as Khare points out.


On the other hand, it was the development of Indian AI that got the spotlight. Indeed, India’s outfit in digital technologies is changing very quickly. The government’s plan for the homegrown large language model with the support of more than 18,600 GPUs signifies an important advance towards AI self-containment.


Actually, the model used by India in its' AI development is not like the one applied in the West. The main feature of which is multilingual compatibility. Because of the existence of 22 official languages and hundreds of dialects, India can develop AI systems that are culturally sensitive and can cater to different language-speaking groups.


This not only enhances the tech sector in India but also makes the country a worldwide leader in the provision of inclusive AI solutions.


  1. Things India Must Do to Keep Talent

To prevent the loss of AI's most brilliant minds and to transform India into a center of worldwide innovations, five crucial measures are needed:


  1. Increase AI Research Funding

Establishment of more centers of excellence particularly in Tier-2 cities to make innovation available everywhere.


  1. Create Incentives to Stay

Provide AI fellowships, PhD scholarships, and competitive pay for researchers.


  1. Support Deep-Tech Startups

Promote AI-driven entrepreneurship by offering easier access to venture capital and mentoring networks.


  1. Collaborate Globally

Offer Indian-origin researchers working abroad the option of contributing remotely to national projects.


  1. Showcase India’s Ambition

Hosting events such as the 2026 Global AI Summit in India could signify leadership in the global AI agenda setting.


The Power of Multilingual AI

India's major edge in AI might not be in its computing power but in its diverse and rich culture and language. A model that can understand and respond in Hindi, Tamil, Bengali, Telugu, Marathi, and others—not only grammatically but also contextually—has the potential to completely change the way AI interacts with human beings, i.e., real people.


Such models can:

-Power rural users and small businesses


-Enhance government service delivery


-Make AI available to non-English speaking audiences


Thus, India’s AI becomes not only commercially strong but also socially transformative.


From Brain Drain to Brain Gain

India's position in the world of technology is changing from being just one source of tech labor to a global innovation creator. The brain drain that was previously felt as impossible to stop is now viewed as a challenge that can be tackled through proactive policy, funding, and vision.


“The government has been actively promoting AI,” says Rajat Khare, “but the real test will be how well we retain and nurture talent. That will decide whether we lead or follow.”

If India invests deeply in its thinkers, empowers its innovators, and values its risk-takers, it can lead the world’s AI revolution—not as a participant, but as a pioneer.


Frequently Asked Questions (FAQs)

  1. What is Boundary Holding’s role in AI investment?

Boundary Holding, founded by Rajat Khare, invests in deep-tech and AI startups that create real-world impact across healthcare, mobility, and security sectors.


  1. What is India’s long-term goal in AI?

India aims to develop a self-reliant AI ecosystem, lead global innovation, and transform from a tech outsourcing hub to a creator of world-class AI products.


  1. Why is brain drain a problem for India’s AI sector?

Brain drain causes the loss of top AI researchers and engineers to foreign countries, weakening India’s innovation ecosystem and slowing down technological progress.


  1. What steps can India take to stop brain drain in AI?

India can increase research funding, strengthen industry-academia collaboration, create AI-focused fellowships, and provide competitive pay to retain its best minds.


  1. What makes India’s AI initiative unique?

India’s AI projects focus on multilingual capabilities that reflect its cultural and linguistic diversity—enabling AI systems that can serve millions in local languages.


  1. How can multilingual AI benefit India?

Multilingual AI can make technology more inclusive, helping rural communities, local businesses, and government programs communicate and operate efficiently in their native languages.

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