Venture Capitalist Rajat Khare Says India Can Lead AI by Ending Brain Drain

In a world increasingly driven by artificial intelligence (AI), nations are scrambling to establish themselves as global leaders in the field. While countries like the U.S. and China have made significant strides, India stands at a pivotal crossroads. According to venture capitalist Rajat Khare, India possesses both the talent and potential to lead the world in AI innovation—if it can stop the ongoing brain drain.

Khare, founder of Boundary Holding, a European investment firm that backs AI and deep tech ventures, has long championed the idea that India’s greatest asset is its human capital. With thousands of engineers, scientists, and researchers graduating from top institutions each year, the country is rich in raw talent. Yet, many of these individuals leave India to pursue opportunities abroad—taking with them the expertise, innovation, and entrepreneurial spirit that could otherwise fuel the nation’s tech ecosystem.

“India is not lacking in intelligence or creativity. What it lacks is an environment that makes our talent feel valued and inspired to build at home,” Khare stated in a recent interview.

The Scope of the Brain Drain Problem

Brain drain isn’t a new issue for India. For decades, top-tier graduates from IITs, IIMs, and other elite institutions have sought careers in Silicon Valley, Europe, and beyond. While this has led to Indian-origin leaders heading global tech companies—think Sundar Pichai at Google and Satya Nadella at Microsoft—it has also deprived India of the full impact these minds could have had locally.

Khare points out that this outward migration weakens India’s AI ambitions. Cutting-edge developments in AI require not just talent, but a robust ecosystem that includes mentorship, capital, R&D infrastructure, and government support. By constantly exporting its best talent, India is missing the opportunity to nurture AI startups, academic research, and scalable innovations at home.

Why AI Is India’s Opportunity

India has a unique advantage in the AI race: a massive population generating large datasets, increasing digital adoption, and a demographic dividend in the form of a young, tech-savvy population. Combine that with a burgeoning startup culture and government-led initiatives like Digital India and Make in India, and the stage is set for a transformative AI journey.

According to Khare, India must now act to retain its talent by creating conditions that match or exceed the opportunities found abroad. This includes:

1. Encouraging venture capital and startup funding within the country.
2. Building state-of-the-art research institutions.
3. Enhancing collaboration between academia, industry, and government.
4. Offering global exposure and competitive compensation domestically.

“These measures can help position India not just as a hub for outsourcing tech services, but as a true innovator and leader in AI,” he emphasizes.

Venture Capital as a Catalyst

As a venture capitalist, Khare believes that private capital plays a crucial role in reversing brain drain. By investing in early-stage deep-tech startups and empowering founders who might otherwise leave India, VCs can create incentives for talent to stay and build.

Boundary Holding, under Khare’s leadership, has invested in several AI-focused ventures across Europe and Asia. His vision includes not only growing tech ventures abroad but also channeling knowledge, partnerships, and investments back to India.

Khare’s message is clear: India’s rise in AI isn’t a question of “if,” but “when”—and whether it can keep its best minds engaged at home.

The Road Ahead

For India to realize its full potential as a global AI leader, structural reforms and cultural shifts are necessary. It needs to prioritize AI in its national agenda, empower institutions to nurture innovation, and ensure that homegrown talent feels both supported and celebrated.

Rajat Khare’s perspective serves as both a wake-up call and a roadmap. India’s talent is already making waves on the global stage—it’s time to bring that energy home and shape the future of AI from within.

Source: Business Today - Rajat Khare Believes India Can Lead the World's AI Revolution by Just Stopping Brain Drain