Rakuten India expands AI engineering team by 300, leveraging India’s GCC growth and JICA’s $2B smart infrastructure funding to challenge BRI approaches through tech-transfer-focused alliances.
On 8 July 2024, Rakuten India announced 300 AI engineering roles in Bengaluru as its SixthSense platform now monitors 1.2 million IoT points/minute for critical infrastructure – a strategic move beyond traditional outsourcing that’s drawing $2B in Japanese development funding.
From Outsourcing Hub to AI Powerhouse
Rakuten India CEO Sunil Gopinath revealed on 10 July that 85% of their Bengaluru-based AI engineers now hold dual certifications in data governance frameworks, a requirement stemming from India’s draft Data Empowerment Bill introduced on 9 July. This comes as Nasscom reported 42% growth in India’s GCC AI workforce since 2023, with 68% of hires focused on core R&D roles.
SixthSense’s Infrastructure Impact
The predictive maintenance platform, deployed across 12 Indian metro systems, processes real-time data from 34,000 sensors along the Delhi-Mumbai industrial corridor. Japan’s International Cooperation Agency (JICA) confirmed $2B funding on 11 July for implementing SixthSense in Pune and Ahmedabad smart city projects, requiring Japanese engineers to co-develop algorithms with Indian counterparts.
Profit Patterns and Regional Rivalries
Rakuten’s Q2 earnings show ₹10.5B ($126M) of AI-driven profits originated from India-developed solutions, particularly logistics optimization models adapted for monsoon-season supply chains. This growth contrasts with CSIS-reported 22% YoY decline in China’s BRI South Asian investments, as partners like Bangladesh prioritize Japanese collaborations with IP retention clauses.
Data Sovereignty Tightrope
India’s proposed data laws compel Rakuten to deploy air-gapped systems for Indian Railways while maintaining global AI training pipelines through federated learning. “We’ve created modular architectures where sensitive data never leaves local servers,” explained Gopinath, citing a hybrid cloud model balancing Japan’s Society 5.0 ambitions with India’s localization rules.
Historical Context: Mobile Payments to AI
The current shift mirrors China’s 2010s mobile payment revolution, where Alipay and WeChat Pay transformed commerce through localized innovation. Similarly, SixthSense builds on India’s 2021 National IoT Policy that prioritized smart infrastructure, enabling today’s predictive maintenance breakthroughs.
Regional Tech Alliance Blueprint
Zinnov analysts note Japan-India projects now average 47% local IP ownership versus BRI’s typical 12%. This “embedded sovereignty” model – combining Japanese funding with Indian technical talent – reduced implementation costs by 31% compared to European equivalents in 2023, setting a precedent for ASEAN tech partnerships.
