India: From software factory to AI powerhouse
Anyone who viewed India as just a land of call centers and outsourcing ten years ago needs to revise that perspective. According to the Global Innovation Index 2025, India ranks 38th globally and 6th in patent applications. For comparison: the Czech Republic is at 32nd place, Vietnam at 44th — and the gap is closing fast.
The key number is 230,000 recognized startups, of which more than 66 have reached unicorn status (valuation over $1 billion). For context: the entire European Union has fewer than 300. India's government aims to add ten more unicorns in 2026 and close the gap with China, which holds second place behind the United States.
The RDIF: $10 billion over six years
The foundation of India's ambitions is the Research, Development and Innovation Fund (RDIF), launched in July 2025 with a budget exceeding $10 billion for a six-year period. The fund targets the areas that will define the next decade:
- Quantum technologies — India is building its own quantum ecosystem independent of both the West and China
- Artificial intelligence — from large language models to industrial applications
- Robotics — including humanoid robots and autonomous systems
- Biotechnology and healthcare — AI diagnostics, drug development
- Space research — India became the fourth country to land on the Moon
- Digital economy — including semiconductors and chip design
All of this serves a single goal: Viksit Bharat@2047 — making India a developed nation by the centenary of its independence.
Vietnam: From assembly line to innovator
Vietnam, once known primarily as a manufacturing base for Samsung and other tech giants, has decided to follow a similar path. During his May state visit to India, General Secretary and President To Lam repeatedly emphasized that science, technology, and digital transformation must become a "primary driving force", not just a supporting tool.
Concrete evidence already exists: the VinFast factory in Tamil Nadu — a $500 million investment for electric vehicle production with a capacity of up to 150,000 vehicles per year. This is a model that can also work in high-tech sectors: Vietnamese companies bring manufacturing expertise, while Indian tech firms contribute AI and software know-how.
The "joint research, joint development, joint production" model
The most interesting part of the new partnership is the concrete cooperation model that To Lam presented at the Indian Council of World Affairs. Instead of the classic "we sell raw materials, you supply technology" model, the concept of joint branding of technology products takes center stage.
In practice, this means:
- Joint research teams at universities and research centers in both countries
- Talent exchange — since 2020, the Vietnamese embassy in India has had a dedicated official for science and technology cooperation
- Shared intellectual property — products are created under a joint brand, not as subcontracting for multinational corporations
- Access to capital — the Mumbai stock exchange has opened its doors to Vietnamese technology companies
Former Indian diplomat D. B. Venkatesh Varma summarized it precisely: "Technological sovereignty is not a gift from others, but the product of a nation's ability to leverage the benefits of cooperation with the outside world."
What this means for Europe and the Czech Republic
For Europe, which worries about dependence on American (OpenAI, Google, Anthropic) and Chinese (DeepSeek, Alibaba) AI models, the India-Vietnam model offers an interesting lesson. It shows that technological sovereignty can be built without your own Silicon Valley — smart partnerships, targeted research investments, and openness to talent are enough.
The Czech Republic is already taking first steps in this direction. The Czech AI Factory in Ostrava, launching in 2026 as part of the European AI supercomputer network, and the Czech National Bank's investments in AI infrastructure for financial market oversight demonstrate that even a mid-sized European economy can find its place on the global AI map.
What Czech companies and researchers still lack is precisely a model of strategic partnerships with fast-growing economies. India with its 230,000 startups, Vietnam with its aggressive entrepreneurial culture — these are not just distant markets, but potential partners for joint AI development that won't depend on decisions made in Mountain View or Beijing.
Capital as an innovation engine
An underappreciated aspect of India's story is access to capital. The Vietnamese president's visit to the National Stock Exchange of India in Mumbai was not just a diplomatic gesture. Exchange chairman Srinivas Injeti stated on the occasion that India's capital market is ready to support Vietnamese technology companies. The combination of Indian risk capital and Vietnam's manufacturing base can create synergies that surpass expensive European initiatives in many areas.
The Czech Republic, which is itself trying to jumpstart its venture capital ecosystem (for example, through funds managed by Česká spořitelna or KB), could take inspiration from this model. Connecting capital, research, and production is a recipe that works across continents.
Why should India and Vietnam care about AI when they don't have their own models like ChatGPT or Claude?
India is actively building its own AI capabilities — for example, the startup Sarvam AI develops language models for Indian languages, and companies like Reliance are building extensive AI infrastructure. Vietnam is investing in AI education and research centers. It's not just about developing their own LLMs, but primarily about industrial AI applications, automation, and robotics — areas where you don't need a trillion-parameter model, but rather specialized and efficient solutions.
Can the India-Vietnam model really compete with American and Chinese tech giants?
Competing directly with OpenAI or Google in general-purpose AI would be unrealistic. But in areas like industrial AI, manufacturing robotics, medical diagnostics, or agricultural technology, the alliance of developing economies can offer solutions tailored to markets that Western companies often overlook. India already dominates in IT services and software exports — linking this with Vietnam's manufacturing power makes perfect sense in the spirit of "joint research and production."
How can a Czech company or startup establish cooperation with Indian or Vietnamese AI partners?
A first step could be joining the EU-India innovation partnerships program or using Czech trade offices in Delhi and Hanoi. India's startup ecosystem is exceptionally open to international collaboration, and the Vietnamese government actively offers tax incentives for technology investors. Specific opportunities can also be found through CzechTrade or the Technology Agency of the Czech Republic, which supports international research projects.
