Why India Cannot Afford to Lag in this Global AI Landscape

Every year on May 11, India observes National Technology Day, commemorating the 1998 Pokhran nuclear tests— a historic moment that affirmed India’s technological prowess. While we take pride in that achievement, this day must also serve as a springboard to look ahead, especially as the world stands on the cusp of another revolution: Artificial Intelligence (AI).

Today, nations across the globe are racing to harness AI’s transformative power. While nations compete to unlock the power of AI to transform economies, industries, and societies, India cannot afford to fall behind. The stakes are high, not only in economic terms but also in national security, global influence, and the imperative for inclusive development. 

The AI Opportunity in India

AI has the potential to add up to $500 billion to India’s GDP by 2035, from automating supply chains to enhancing decision-making in healthcare, agriculture, education, and finance. Its impact can be broad and deep, but this opportunity is not guaranteed. It demands robust investment in R&D, digital infrastructure, and a strong culture of innovation. 

Global leaders like the United States and China have already poured billions into AI research and commercialization. India must move from being a consumer of AI to becoming a global innovator and exporter of AI solutions tailored to both local and international needs.

AI is also redefining national security, from modern warfare and surveillance to cybersecurity and intelligence, which are being shaped more and more by AI tools. Nations that dominate AI will have the edge in both offense and defense. For India, surrounded by technologically advanced rivals, AI leadership is not optional - it is essential for sovereignty and strategic resilience. 

Used wisely, AI can help bridge India’s deep social and economic divides. Imagine farmers using AI-powered tools for real-time crop decisions, rural doctors diagnosing illnesses early with AI assistance, or students in remote villages learning through personalized, AI-driven platforms. These are not distant possibilities—they are within reach.

However, if AI remains confined to elite institutions and urban centers, it could widen inequalities instead of closing them. That’s why India needs a national AI strategy that is inclusive by design, ensuring benefits reach every citizen regardless of geography or background.

With one of the world’s youngest populations, India has a demographic edge - but only if we equip our youth with the skills of the future. As AI and automation disrupt traditional roles, new careers will emerge in data science, robotics, machine learning, and AI ethics. Massive skilling and reskilling efforts are critical to ensure our workforce remains future-ready.

India’s Global Voice in AI

Beyond economics and defense, AI leadership will shape the future of global governance. The rules, ethics, and standards of AI are being written now, and those at the forefront will influence them. As the world’s largest democracy, India has a unique opportunity to champion a responsible, inclusive, and ethical AI framework—but only if it strengthens its capabilities first.

Encouragingly, India has taken steps in the right direction: the National AI Strategy, the IndiaAI Mission, and growing support for startups and AI research centers reflect a rising awareness of AI’s importance, but these efforts must now be scaled dramatically.

What’s needed is a coordinated national strategy backed by visionary policy, infrastructure investment, incentives for private innovation, and a framework that ensures ethical governance.

National Technology Day is celebrated to remember what can be accomplished when science, vision, and political will join hands. Back in 1998, India showed the world that it had the capability of mastering advanced technologies and establishing itself on the international map. Presently, AI presents a similar moment of reckoning. India must act boldly, invest wisely, and innovate inclusively—because the nations that lead in AI will define the future. India has the potential to be one of them. 

Preeti Menon

---

Preeti Menon is Chief Delivery Officer for the PDES Business Unit at Happiest Minds.