India is rapidly emerging as a dominant force in the field of artificial intelligence (AI) and analytics, fuelled by a burgeoning pool of tech and digital talent and substantial government support. Both the central and various state governments have rolled out initiatives to drive AI adoption in the country. Notable programs include “AI for All” by Niti Ayog, and India’s leadership role at the G20 summit’s Chair at GPAI. Additionally, the Ministry of Electronics and Information Technology (MeitY) is set to launch initiatives like IndiaAI, Bhasini Programme, and YuvAI to skill the Indian youth.
Multiple states, particularly Tamil Nadu, Telangana, and Karnataka, have introduced schemes to foster skill development, stimulate corporate growth and investments in the AI sector, and establish regulations for the responsible use of AI.
Anticipating significant announcements in favor of AI adoption and integration across businesses and governance systems, Finance Minister Nirmala Sitharaman is scheduled to present the interim Budget for the fiscal year 2024-25 on February 1, 2024. This marks her sixth consecutive budget since 2019.
With an estimated year-over-year Compound Annual Growth Rate (CAGR) of over 30%, India Inc. has embraced AI in various sectors. Although India may lag behind some mature global markets, it outpaces many developing economies. Leveraging AI is predicted to bring about substantial improvements of 3-10 times in business processes, contributing significantly to India’s ambitious goal of achieving a $5 trillion economy.
A Deloitte report suggests that the government should enhance investments in AI and explore new research areas such as quantum computing in AI, digital interventions for societal benefit using AI, Explainable AI (XAI), Gen Chem and Computational Biology, and the development of smart and connected cities. The report emphasizes the crucial role of the government in fostering collaboration between academia and industry.
The key to success lies in identifying specific use cases that the government can implement to maximize their impact on society. While the government has taken steps like establishing centralized data repositories with initiatives such as Aadhar, CoWin, and portability of insurance policies, further actions are needed to propel the growth of AI and analytics.
