India’s experience with population-scale digital solutions — from mobile connectivity to Aadhaar and UPI — has reshaped governance and markets. Artificial intelligence now presents a far bigger inflection point. It promises gains in productivity, service delivery, and decision-making, but also carries risks for employment, sovereignty, and strategic autonomy. How India designs its AI pathway will determine whether it emerges as a rule-maker or remains dependent on systems controlled elsewhere.
From Digital Foundations to the Intelligence Layer
India’s digital public infrastructure (DPI) was built to solve uniquely Indian problems: scale, diversity, and inclusion. Aadhaar enabled universal digital identity; UPI transformed payments without expensive banking infrastructure. These platforms created a base layer on which public and private innovation flourished.
AI represents the next layer — one that does not merely transmit or authenticate information, but interprets and acts upon it. Unlike earlier technologies, AI systems increasingly influence learning outcomes, healthcare decisions, financial access, and administrative choices. This elevates AI from a productivity tool to a core governance technology.
Why AI Is a High-Stakes Transition for India
India’s technology services sector employs millions and has long been a growth engine. However, generative AI and automation threaten routine coding, testing, and back-office functions. If India remains only a consumer of foreign AI systems, automation risks could outweigh productivity gains.
At the same time, India’s existing strengths — large datasets, digital penetration, and cost-effective talent — offer a chance to move directly into higher-value segments such as model development, data infrastructure, and domain-specific AI applications.
Jurisdiction Over AI Systems: The Core Sovereignty Question
The most powerful AI systems today are foundation models trained on massive datasets generated by billions of users. For India, the central concern is not merely who owns these models, but where they are trained, hosted, and governed.
If AI systems shaping education, healthcare, or commerce operate under foreign jurisdictions, India loses oversight over:
- Use and storage of sensitive data
- Algorithmic behaviour and biases
- Accountability in case of harm or failure
As AI begins to manage public infrastructure and process sensitive information across defence, energy, and finance, this becomes a national security issue. India’s approach seeks a middle path — avoiding both Western-style corporate dominance and Chinese-style state centralisation — by building domestically governed intelligence systems aligned with national laws and priorities.
Green AI Infrastructure as an Industrial Opportunity
AI is computationally intensive, and global computing capacity is currently concentrated in the US and China. Expanding domestic compute is therefore strategic as well as economic.
India’s advantage lies in linking AI infrastructure with its renewable energy push. Data centres powered by solar, wind, and green hydrogen can:
- Anchor investment in clean energy ecosystems
- Drive innovation in semiconductors, power electronics, and cooling technologies
- Reduce the carbon footprint of large-scale AI deployment
With supportive policy and financing, green AI infrastructure can become a new industrial pillar, combining competitiveness with climate commitments.
Citizen-Centric AI: Multilingual Personal Agents
A distinctive element of India’s AI vision is the idea of a user-controlled, multilingual AI agent for every citizen. Such agents could support:
- Farmers with weather and crop advisories
- Students with personalised language and skill learning
- Patients with secure management of medical records
Crucially, these systems must be private, transparent, and accountable, with data remaining under user control. Achieving this requires open standards, strong privacy safeguards, and collaboration between government, academia, and startups — echoing the institutional design principles behind Aadhaar and UPI.
Employment Shifts and Value Creation
AI will reshape how work is organised. While some service roles may shrink, new opportunities will arise in:
- Data curation and infrastructure
- Model training and evaluation
- Sector-specific AI solutions in health, agriculture, and governance
The strategic challenge is timing. Countries that invest early can capture higher-value activities. China’s dominance in clean energy supply chains offers a precedent: early, large-scale investment can lock in long-term advantages.
What to Note for Prelims?
- Digital Public Infrastructure (DPI): Aadhaar, UPI, and their design principles
- Foundation models and their reliance on large datasets
- Concept of AI jurisdiction versus ownership
- Green data centres and low-carbon computing
- Multilingual AI systems and inclusion
What to Note for Mains?
- AI as a strategic technology impacting sovereignty, security, and employment
- India’s middle-path approach between corporate-led and state-controlled AI models
- Linkages between AI infrastructure and renewable energy goals
- Implications of AI for service-sector employment and skill transitions
- Role of citizen-centric AI in inclusive governance and service delivery
