You are severely underestimating India within this context. In fact one of the benefits of Silicon Valley for America was that Indians used to believe in an American Dream and the SV Venture capitals could provide a better salary for developers.
But this is because of American dollar (formerly) being the de-facto currency which made the currency strong in value & this made investments especially within S&P and VC money(as more & more VC funded companies ended up on shelfs on S&P and nasdaq)
So the amount of money flowing in America was like a river and we went there and helped because I do feel like most Indian coders are more liberal (yes even if there have been times of racism)
But after ICE attacks & H1B hikes to a million $ and children of people not recieving citizenship, Indian Coders will prefer to stay in India and focus more on the startup culture within India (banagalore, gurgaon,ahmedabad etc.)
Indian Coding tests for colleges are hard and the premise of American dream was that Kids wouldn't have to study within the hyper competitive environment as well but at this point, we don't know if the kids would be able to stay safe in the first context as well. (I saw videos of ICE online where they targeted brown/black kids like wtf??)
I will be the first to admit that India's research programs are ass so much of our researchers in context of AI are in America or Europe but the ties between Europe are gonna get stronger & we might get ourselves better research programs in near future.
On the other hand China's research programs are excellent so they are able to dominate AI space in this context.
But rest assured, I do feel like India can dominate/play catch up.
India EU deal is also being signed (in the process) & India recently slashed any tax on angel investing and Indian startups are tax free for 2-3 years and India is opening up cities specifically for technology hubs. India also doesn't tax foreign income & India's startup culture is robust.
So what was the issue? Lack of funding. For an idea which could garner 1 million $ in America, we might only be able to get 100_000$ but as more and more countries and institutional investments move further from America (See you are thinking only Europe will move but the world is seeing not just Europe seeing America make aggressions towards another sovereign country)
I do like to dunk on my indian govt. but I do feel like they are very much understandable within this context and chill.
Now some people might think we might still use AWS,GCP etc. but rest be assured any new startups will probably evaluate Hetzner,OVH,scaleway (which in many cases are cheaper than these cloud providers as well in the first place) plus it gives easier EU connection in the future with laws like GDPR.
I predict India Estonia relations are gonna rise and we are gonna see a witness in EU companies built in Estonia (which supports e-residents and company formation without travelling/living there for around 200-300$) in the near future as well.
India has UPI which I will have to admit is such a beauty to use & transact and even street vendors got UPI which could've been unthinkable a decade ago. My brother was actually on a team in his college to try to create diplomatic relations between India and London to create UPI test pilots there and I do feel like UPI and SEPA integration could deeply financially involve the two alliances together.
Best of all is that India's much more neutral and non alignment policy than America & We have a policy (both at a national/state to even a more household idea) of peace and welcoming neighbours.
Did you know that USSR and China had bicker (two countries which were aligned together) and USA then decided to connect with China (effecitvely establishing free trade zones setting up factories) which has now made China grow into (I must admit even though its scary for the borders, a key global play)
You would be surprised by how quickly America and China integrated.
Now US and EU have a falling out and you see Indian tech with all factors just saying hello and winking at EU which has good capital funding. The subtext is probably clear but the fact of the matter is that India has some great potential (largest population which is unemployed, if you spin up enough colleges with good degrees and teach effectively and filter out the people interested in tech than those who aren't) Our tests aren't built in such a way tho but I do hope that India pivots in this context but overall, Its still pretty optimistic and India has been one of the fastest growing countries.
I don't think Europe will just survive without American tech, it might actually thrive given that I think Indian tech companies will focus on the home brand in home and with PPP, we will probably pricen things out less (comparatively to America) even for the American customers.
It's just not even about India. Of course I am biased here but I can try to provide as much facts on the details if you want because I have detailed extensively about this as its literally the intersection of every interest I have (geopolitics & tech)
Funny thing is that AI might actually help Indians more than people think too. We are more likely to be able to just record our speech in whatever we want and there are tools which are literally live which can understand context and just modify the accent to be better understood if accent struggles + we might see closed captions and other contexts as well & my brother works in Coding industry and AI agents are used extensively & America went from giving 100_000$ salaries to 200$ coding models (talking about the best of best CC here for dev context, we are also gonna witness China catch up in here and provide things for cheaper but great quality too, For context GLM's z ai is head to head with claude in many things and costs 10x less)
Once again I have my bias and feel free to discredit it if it inconveniences ya.
But atleast the philosophy I am moving with (and I hope india does too) is to keep a sharp focus on being the best & price effective too & get external funding within the country. We are non aligned and we don't want to fall into many controversies that much & we are just doing our own thing and I must admit, we are getting pretty good at it.