AI as India’s Next Foundational Public Utility

Background

India has developed a robust Digital Public Infrastructure (DPI) by integrating Aadhaar for digital identity, UPI for digital payments and DEPA/Account Aggregator for consent-based data sharing into an interoperable ecosystem. This digital foundation has enabled large-scale inclusion and significantly reduced the cost of internet access.

The next stage of this transformation is to treat Artificial Intelligence (AI) as a public utility, making computing power, datasets, foundational models and AI-based services affordable, accessible and interoperable for citizens, startups and public institutions.

AI as a Foundational Public Utility

AI as a foundational public utility means creating shared infrastructure that provides affordable access to computing power, algorithms, datasets and AI inference. This approach seeks to move AI beyond large corporations and research laboratories and make it available to ordinary citizens, MSMEs, governments and educational institutions.

It reflects the principle of “AI for All” and can contribute to the broader vision of Viksit Bharat @2047.

Why AI as a Public Utility Matters

Economic Growth and Innovation

AI can become a major productivity and innovation engine across agriculture, healthcare, education, manufacturing, MSMEs and the digital economy. According to the cited IBM–IndiaAI study, AI could contribute over $500 billion to India’s economy by 2030.

Better Governance

AI can strengthen data-driven policymaking and improve the delivery of welfare schemes, grievance redressal, taxation and judicial services. It can help governments process large volumes of information and provide faster and more targeted public services.

Technological Sovereignty

Developing indigenous AI models and computing capabilities can reduce dependence on foreign technology platforms. Domestic AI infrastructure can also strengthen data sovereignty and ensure that AI systems better reflect India’s linguistic, cultural and social diversity.

Social Inclusion

AI-powered voice and language technologies can help overcome barriers related to literacy, language and digital skills. Citizens in rural and underserved areas could access banking, healthcare and government services through local-language interfaces.

Improved Service Delivery

AI can support early disease detection, crop advisories, weather forecasting and soil-health analysis. In education, adaptive learning systems can provide personalised instruction and help address teacher shortages, particularly in multilingual classrooms.

India’s Emerging AI Ecosystem

India is rapidly expanding its technology and AI ecosystem, supported by a large startup base, a growing pool of technology professionals and numerous Global Capability Centres. The country is also witnessing increasing adoption of AI across sectors, with startups integrating AI into products and services.

India has also improved its position in global assessments of AI competitiveness, reflecting its growing capabilities in technology, talent, entrepreneurship and digital infrastructure.

Major Government Initiatives

IndiaAI Mission

The IndiaAI Mission, approved in 2024 with an allocation of ₹10,371.92 crore over five years, aims to build an inclusive and responsible AI ecosystem. It focuses on expanding compute access, datasets, innovation, AI skills and safe AI adoption.

AI Centres of Excellence

The government has established AI Centres of Excellence in areas such as healthcare, agriculture and sustainable cities, with education also identified as a major area. These centres bring together government, academia and industry to develop scalable AI applications.

Bhashini

Bhashini uses AI for Indian-language translation and speech services, helping citizens access digital platforms without being restricted by language barriers.

BharatGen

BharatGen represents India’s effort to develop indigenous multilingual and multimodal AI capabilities, incorporating Indian languages and datasets to address the country's diverse linguistic and cultural requirements.

AI Skills Development

AI-skilling frameworks are being developed to improve the ability of government officials and public-sector institutions to use AI effectively in policymaking, administration and service delivery.

Major Challenges

Inadequate Computing Infrastructure

India still faces limitations in access to high-performance GPUs, advanced computing infrastructure and semiconductor technologies. Building large-scale AI infrastructure requires significant investment.

Dependence on Foreign AI Models

Reliance on proprietary foreign AI models and APIs can create vulnerabilities related to technological sovereignty, cost and data control.

Data Gaps

The availability of high-quality datasets in Indian languages and local contexts remains inadequate. This can limit the accuracy and relevance of AI applications for Indian users.

Digital Divide

Unequal access to internet connectivity, digital infrastructure, AI tools and digital literacy could deepen existing socio-economic inequalities, particularly among rural communities and small enterprises.

Ethical and Cybersecurity Risks

The spread of deepfakes, AI-generated misinformation, privacy violations and algorithmic bias can undermine public trust and create new governance and security challenges.

Environmental Concerns

AI data centres require large amounts of electricity and water, raising concerns regarding energy security, carbon emissions and environmental sustainability.

Way Forward

India needs to expand affordable AI compute infrastructure and strengthen domestic semiconductor capabilities while encouraging collaboration among government, academia, startups and industry.

Greater support should be provided for open-source and indigenous Indic AI models, supported by high-quality and responsibly anonymised datasets. A common interoperable AI platform, similar in principle to UPI, could allow citizens, startups and public institutions to access multiple AI models through common standards.

The government could also consider subsidised AI access for students, researchers, startups and public institutions to encourage wider adoption while allowing commercial users to transition towards market-based services.

At the same time, strong frameworks for privacy, transparency, accountability, cybersecurity and ethical AI are essential to ensure that technological progress does not compromise individual rights or public trust.

Conclusion

Artificial Intelligence has the potential to become India’s next foundational public utility, building upon the success of its Digital Public Infrastructure. Just as affordable internet, Aadhaar and UPI democratised participation in the digital economy, accessible and affordable AI can democratise knowledge, innovation and opportunities.

With greater investment in compute infrastructure, semiconductors, indigenous datasets, skilled talent and responsible governance, India can use AI to strengthen economic growth, improve public services, promote inclusion and advance the vision of Viksit Bharat @2047.