India's IT minister has praised Chinese startup DeepSeek for shaking up the sector with its low-cost AI assistant, likening its frugal approach to his government's efforts to build a localized AI model.

Union Minister Ashwini Vaishnaw on Friday praised the Narendra Modi-led government for focusing on new and emerging technologies, and allocating Rs 500 crore in the Union Budget 2025-26 to set up a Centre of Excellence in Artificial Intelligence.

DeepSeeks AI assistant quickly ascended to the top of the most downloaded mobile apps, notably in India which accounted for 15.6% of total new users. The app's rapid adoption and competitive capabilities have generated significant market interest,