India was late to the AI chip race. Could cameras and cars offer a way in?

India's strategy to enter the AI chip market appears to be focusing on edge AI, which involves processing data directly on devices. This approach differs from the race to design chips for large AI data centers. Industry executives suggest that integrating intelligence into everyday electronics such as cameras and vehicles offers a more accessible entry point for Indian firms.

The demand for local data processing is driven by the need for faster responses in applications like autonomous vehicles and factory automation. Edge AI chips allow devices to function independently of internet connectivity, maintain data privacy, and potentially reduce cloud computing costs. These benefits are particularly relevant in markets with variable internet access and cost sensitivities, as noted by Atomo's Pratik Parmar.

While the domestic market for edge AI chips in India is projected to grow substantially, from US$984.1 million in 2026 to US$11.7 billion by 2033, the success of these nascent companies will depend on their ability to develop competitive software, achieve manufacturing scale, and secure customer adoption. Initial testing of Indian-designed circuit boards is also underway in international markets, including Japan, South Korea, and the Middle East.