When Google CEO Sundar Pichai describes India’s present technological phase as a “transformational moment,” he is not merely offering diplomatic praise. He is recognising a structural shift underway: India is evolving from a vast digital marketplace into a potential architect of the global artificial intelligence ecosystem. This transition, reflected in major policy initiatives, the rise of indigenous AI models, and large-scale investments, may prove as consequential as the economic liberalisation of the 1990s. Yet every technological leap carries a dual edge. The promise of AI-driven growth is inseparable from deeper questions about equity, governance, institutional readiness, and the long-term capacity of the state to manage disruption. India’s AI ambition must therefore be evaluated not only through the lens of innovation, but also through the imperatives of social justice and democratic accountability.
At first glance, India appears uniquely positioned to lead this transformation. Its digital public infrastructure — spanning identity, payments, and service delivery — has demonstrated the ability to function at population scale, something few nations have achieved. A vast developer base, a thriving startup ecosystem, and a multilingual society that demands localised solutions together create fertile ground for AI applications tailored to complex realities. Indigenous language models and context-sensitive systems hold the promise of bringing AI into domains long neglected by technological progress: precision agriculture for small farmers, early diagnostics in rural healthcare, adaptive learning tools for government schools, and citizen-facing governance in regional languages. If AI can operate meaningfully in these spaces, India’s approach could redefine inclusive innovation and offer a template for the Global South.
Yet ambition must be matched by structural capability. True leadership in AI is not measured by the number of applications built, but by control over foundational layers — computing infrastructure, semiconductor access, data governance frameworks, and the energy systems required to power large-scale data centres. India remains dependent on imported hardware and global cloud platforms, raising questions about technological sovereignty. Without sustained investment in domestic research, advanced manufacturing, and open innovation ecosystems, the country risks becoming a major consumer of AI services rather than a co-creator of its future. The challenge is not to resist foreign investment, but to ensure that such capital strengthens domestic capability rather than entrenching long-term dependency.
Equally pressing are the social consequences of rapid AI adoption. Technology amplifies existing institutional strengths and weaknesses; it does not automatically produce fairness. AI has the potential to improve productivity and public service delivery, but it also carries risks of job displacement, algorithmic bias, and expanded surveillance. India’s large workforce in IT-enabled services and routine digital tasks may face disruption as automation accelerates. At the same time, poorly governed data ecosystems could expose citizens to privacy violations or opaque algorithmic decisions that erode trust in public institutions. The policy question is no longer whether AI should be adopted — that debate is settled — but how to embed safeguards that protect civil liberties, ensure transparency, and enable workforce transitions through reskilling, social protection, and new forms of employment.
The environmental dimension of AI expansion is another emerging concern. Large-scale data centres demand enormous energy and water resources, raising sustainability questions in a country already grappling with climate stress and uneven infrastructure. If India’s AI growth is powered by carbon-intensive energy, the long-term costs could undermine the very development gains it seeks to accelerate. Conversely, integrating renewable energy, energy-efficient computing, and climate-resilient infrastructure into AI expansion could position India as a leader in sustainable digital growth. This intersection between technological progress and environmental stewardship will shape the credibility of India’s claim to a responsible and inclusive AI pathway.
Ultimately, India’s AI moment will be judged not by the presence of global technology leaders or the scale of investment pledges, but by whether the technology reaches those historically excluded from the benefits of growth. The true benchmark of success lies in whether AI empowers small entrepreneurs, strengthens public health systems, improves educational outcomes, and deepens democratic participation. Achieving this vision requires more than technical expertise; it demands ethical regulation, multilingual innovation, public trust, and an education system that cultivates critical thinking alongside digital skills. If India can align these elements, it has the opportunity to chart a distinctive path — one that balances innovation with inclusion and positions the country as a responsible shaper of the global AI order. If it cannot, this historic opportunity may dissolve into a familiar pattern: impressive technological capability layered atop persistent inequality, leaving the promise of transformation only partially fulfilled.