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Home Future Tech AI

What’s the Future of AI in India: Opportunity or Obstacle?

Know how artificial intelligence can shape India’s future

by Rohan Mathawan
April 22, 2025
in AI
Reading Time: 3 mins read
0
Photo by Igor Omilaev on Unsplash

Photo by Igor Omilaev on Unsplash

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Artificial Intelligence (AI) has the potential to become the foundation of global innovation, influencing government functions, business sectors, and even everyday life. India, the most populous nation and a rising technological superpower, has unprecedented potential with AI. But it also brings with it complicated problems that must be solved before they exacerbate the country’s digital divide.

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By industry estimates, AI has the potential to contribute between US$1.2 to US$1.5 trillion to India’s GDP by 2030. But the path to that future is by no means a linear one. The question on everyone’s mind is: Can India use the power of AI to propel inclusive growth, or will it be held back by structural chasms and moral quagmires?

The Promise: AI as a National Game-Changer

AI is already making its mark on various sectors:

Agriculture: With analytical capabilities on AI, farmers can envisage weather, boost the yield of crops, and check pest outbreaks.

Health Sector: The startups are using AI for early cancer diagnosis, remote medical diagnosis, and personalized treatment in most inaccessible areas.

Governance: State governments have begun to adopt AI in predictive policing and traffic monitoring and to deliver services in the blush-saving glory of the bureaucracy.

In a big push, the Indian government has pledged ₹10,000 crore to the IndiaAI Mission, which is targeted at democratising access to AI, backing compute infrastructure, and establishing a strong AI ecosystem. The INDIAai platform is a unified platform for knowledge, research, and collaboration.

The private sector is also picking up pace. Indian technology companies are investing in homegrown large language models (LLMs), data annotation services, and regional AI solutions that incorporate India’s language and cultural diversity. With access to one of the world’s largest data reservoirs and a young tech talent pool, India is well placed to lead, if it can surmount the hurdles.

The Dangers: Skill Shortfall, Ethical Gap, and Infrastructure Loopholes

While its aspirations are lofty, India is confronted with some urgent issues:

Talent deficit: There is far greater demand than supply for AI and data science professionals. NASSCOM reports that fewer than 5% of India’s technical talent possesses skills in sophisticated AI technologies. Unless there is widespread, fast-scale upskilling, the nation is likely to experience a tech bottleneck.

Ethical and legal complications: India does not have a mature regulatory framework for AI. Concerns such as algorithmic bias, surveillance, deepfakes, and data abuse are increasing, while regulatory protection is still developing. The Digital Personal Data Protection Act recently enacted is a beginning, but enforcement and clarity are issues.

Insufficient R&D and computing infrastructure: India still depends mostly on imported models and cloud-based technology. The lack of local compute capabilities and open-access data stifles innovation from within. Most AI breakthroughs are still happening elsewhere.

These weaknesses aren’t just a danger to technological advancement, they also threaten to leave millions in the lurch in an AI economy.

The Road Ahead: Inclusive, Responsible, and Indigenous

India’s AI journey will be shaped by the way it responds to these challenges. A few imperatives jump out:

  • Invest in human capital by making AI education accessible from school to college level.
  • Encourage indigenous innovation by funding startups and researchers creating India-centric models.
  • Develop ethical frameworks that make AI tools transparent, fair, and accountable.
  • Decentralize gains from AI to reach rural India and marginalized groups, rather than limit them to metro cities and IT belts.

India lost out on previous waves of industrialization and digitization. But the AI wave is one it should not let slip by. With the window of opportunity squarely open, and international attention focused on new technology centers, India has no choice but to act boldly, responsibly, and in a hurry.

AI is not a silver bullet, but with the proper strategy, it can be the driver that transforms India’s economic and social future.

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Rohan Mathawan

Content Editor at Techstory Media | Technology | Gadgets | Written more than 5000+ articles about different niches from Tech to online real money gaming for reputed brands and companies. Get in touch Email: [email protected] For Business Enquires related to TechStory [email protected]

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