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Policy3 June 20266 min read

What China's “AI Plus” plan teaches India about going AI-native

In 2025 China told every industry to embed AI, targeting over 70% adoption by 2027. Indian businesses don't need to wait for a mandate to win the same edge — they need to start.

By Garvit Jain, Vardhan AI

In August 2025, China's State Council released the “AI Plus” Action Plan — a national blueprint to push artificial intelligence into every sector of the economy. The targets are blunt: by 2027, penetration of new-generation intelligent terminals and AI agents above 70%; by 2030, above 90%. The strategy's first priority is plain — industrial empowerment: get AI into industry, agriculture, and services as widely as possible.

A national push to make AI ordinary

What's striking isn't the ambition — it's the framing. China is treating AI not as a moonshot for a few tech champions but as infrastructure for everyone: something an ordinary factory, shop, or service business is expected to use. The bet is on diffusion, not just invention.

From “world's factory” to intelligent factory

This builds on a decade-long arc — Made in China 2025 aimed to move the country from low-cost manufacturing to higher-value, technology-intensive production. AI Plus is the next layer: not just better machines, but software intelligence wrapped around how businesses operate day to day.

The lesson isn't policy — it's diffusion

India doesn't need to copy a government program to capture the same advantage. The real lesson is that the winners are the businesses that fold AI into everyday operations — sales, support, paperwork, decisions — rather than running one-off pilots. The edge compounds for whoever adopts first, mandate or not.

India's quiet advantage

India has rails most countries would envy: UPI, near-universal WhatsApp, digital public infrastructure, a young workforce, and English fluency. An Indian MSME can stand up an AI-native workflow — WhatsApp-led, UPI-connected, GST-aware — faster than almost anyone. McKinsey's estimate that gen AI could add trillions in annual value applies here too; the question is who moves.

The country that diffuses AI fastest wins — but so does the business. You don't need a national plan to start. You need one workflow.
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