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February 18, 2026

PM Encourages Indian IT Sector to Innovate in AI Product Development

The CSR Journal Magazine

Prime Minister Narendra Modi on Tuesday urged the Indian information technology (IT) industry to expand its focus from traditional service delivery to actively creating artificial intelligence (AI) products, platforms, and solutions.

Speaking at an event in New Delhi, he emphasized that India’s IT sector plays a critical role in the nation’s economic growth and service exports. He highlighted the double-edged nature of AI as both an opportunity and a challenge for the sector.

Transforming the IT Landscape

During his address, PM Modi remarked that while general-purpose AI tools have gained popularity, the adoption of enterprise-grade AI remains concentrated within select industries. He noted that established IT firms continue to play vital roles in addressing complex business challenges.

His comments appeared to encourage Indian software service companies to cultivate new capabilities and venture into product development, an area where many have yet to gain significant traction despite their substantial financial reserves.

Positioning India as an AI Superpower

Modi asserted the importance of India not merely as a consumer of technology but also as a creator. This aligns with the government’s ‘Atmanirbhar Bharat’ initiative, aimed at self-reliance in various sectors. “My vision is for India to rank among the top three global AI superpowers, not just in terms of consumption but also in production,” he stated.

The Prime Minister expressed aspirations that Indian AI models would serve a global audience, enhancing accessibility by supporting multiple native languages. Furthermore, he projected that Indian AI startups could achieve valuations in the hundreds of billions, significantly boosting high-quality job creation.

Addressing Employment Concerns

In response to apprehensions regarding the potential job displacement caused by AI, PM Modi reassured the youth about the government’s commitment to equipping them with the necessary skills for an AI-driven job market. “I recognize the concerns our youth have regarding disruptions in employment due to AI. Preparation stands as the best response to this fear. Hence, we are focusing on skill development and re-skilling to prepare our workforce for the future,” he articulated.

Historical Context and Future Opportunities

The Prime Minister reflected on historical trends, asserting that advancements in technology do not eliminate jobs but rather transform their nature, often giving rise to new employment opportunities.

He asserted that digital transformation is expected to create new tech jobs within the Indian economy. Modi concluded by emphasizing that innovation invariably leads to new opportunities, a trend that he believes will also hold true in the era of AI.

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