Abstract

Artificial Intelligence (AI) is rapidly transforming the dynamics of global power, acting as a force multiplier in national power. For India, AI offers a crucial lever to enhance its comprehensive national power (CNP) by integrating intelligent systems into various aspects of national power, which includes defence, economy, diplomacy, military and societal governance.

India, propelled by government initiatives, a vast developer community as well as international partnerships, is emerging as a strong contender in the Global AI race. This paper explores India’s AI strategy, its challenges and outlook, where it dives into the prospects of India becoming an AI superpower where it also attempts to identify its nature.

Keywords: Artificial Intelligence (AI), Comprehensive National Power (CNP), AI Superpower, Societal AI, US, China, QUAD, G20, etc.

Introduction

Artificial Intelligence (AI) is rapidly transforming the dynamics of global power, acting as a force multiplier in national power. For India, AI offers a crucial means to enhance its comprehensive national power (CNP) by integrating intelligent systems into various aspects of national power, which includes defense, economy, diplomacy, military and societal governance.

Deploying Artificial Intelligence (AI) in India’s governance has been responsible for transforming the public service delivery where platforms like eSanjeevani, DIKSHA and Ayushman Bharat Digital Mission, under “AI for Health”, use AI for diagnosis, prediction, and access. The Ministry of Health & Family Welfare announced integration of an AI‑powered CDSS into eSanjeevani which automates complaint capture and provides AI‑based differential diagnosis recommendations where over 196 million consultations have been standardized, with 12 million aided by AI‑driven diagnosis suggestions i

According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8, ahead of the US (2.2) and Germany (1.9). AI talent concentration in India has grown by 263% since 2016, positioning the country as a major AI hub. India also leads in AI Skill Penetration for Women, with a score of 1.7, surpassing the US (1.2) and Israel (0.9) ii

India, propelled by government initiatives, a vast developer community and international partnerships, is emerging as a strong contender in the Global AI race. This paper explores India’s AI strategy, its challenges, and outlook, where it also dives into the prospects of India becoming an AI superpower where it also attempts to identify its nature.

AI as a pillar of India’s National Power

India’s national power traditionally rests on two factors: DIME Framework and CNP, where DIME refers to Diplomacy, Information, Military and Economy and CNP refers to the comprehensive national power model. With the global AI revolution, AI is bound to play a pivotal role in strengthening the four aspects of DIME. AI-powered analytics enable real-time sentiment assessment in global discourse, helping Indian diplomats tailor communication in multilateral forums, including G20, Quad, and GPAI meetings, facilitating India strategic messaging and influencing capabilities.

Through initiatives such as open-source LLMs (e.g., BharatGPT), multilingual NLP models, and responsible AI ethics frameworks, India positions itself as a normative AI power. Its emphasis on adopting an ethical, inclusive and human-centric AI model resonates strongly in the Global South, reinforcing its soft power credentials. Installed at C‑DAC Pune, India’s AIRAWAT ("AI Research, Analytics, and Knowledge Dissemination Platform") is a major milestone in the National Program on AI, designed to provide advanced computing infrastructure for research labs, academia, startups, and industry via the National Knowledge Network iii

AI is projected to contribute US$ 15.7 trillion to global GDP by 2030, with India poised to add US$ 967 billion to its economy through AI-led productivity iv . India hosts over 3,000 AI startups, with sectors like fintech, healthtech, agritech and edtech showing rapid adoption. AI-driven smart factories under India’s Make in India 2.0 initiative are enhancing productivity and competitiveness.

The government-Industry synergy is reflected in NASSCOM’s AI hubs and partnerships (e.g., Wadhwani AI for agriculture) show strong synergy between public, private, and civil society actors. With programs like PMGDISHA (Digital Literacy Mission), India trains rural citizens in AI-adjacent digital skills. Over 60 million citizens have benefited from basic digital literacy drives by 2023 v

India has launched key AI-driven defense ini tiatives which include 75+ projects via DRDO, autonomous UAVs, swarm drones, predictive logistics, and smart reconnaissance tools—enhancing force elasticity near the Line of Actual Control (LAC)vi. AI-backed systems such as AFNet provide network-centric warfare capacity and real-time battlefield awareness vii. Institutional support through DRDO’s Defense AI Council, annual ₹1,000 crore pipeline, and tri-service Centers of Excellence underline India’s commitment to AI in defense viii. During operation Sindoor, India’s fully AI- powered autonomous defence system, Akashteer, successfully performed the real-time target interception and indulged in drone warfare, whose brilliance lied not in brute force but in intelligent warfare ix .

India in the global AI race: A Comparative study

While India’s intent and initiatives are resilient and aim at sustainable use of AI, challenges remain, especially as we perform a comparative assessment with the present AI superpower (chiefly US and China). Based on the current scenario, a few challenges can be identifies as mentioned below:

(Source: Prepared by Author- Original)

India’s AI ecosystem remains nascent as compared to other global leaders. In 2024, India filed roughly 26,000 AI patents whereas those were 68,000 in the U.S. and 300,000 in China xii. Here, China leads the global patent filings, with over 300,510 AI patent applications filed in 2024 alone. The US stands second with approximately 67773 filings. Whereas India has filed only 25991 AI related patents, till last yearxiii. Although significantly lagging in absolute numbers, India has shown a high compound annual growth rate (CAGR) i.e. of 56%, in AI patent filing. India ranks fifth globally, ahead of countries like Japan and Germany, but the volume is relatively modestxiv . This disparity in statistical data suggests that while Indian researchers and organizations are increasingly active in AI development, they may not be investing enough in protecting or commercializing their innovations.

Despite lagging in terms of private sector R&D in original research and lack of focus on commercial applications xv , India is building ‘ethical AI for all’ model which is a counterweight to techno-authoritarianism and techno-commercialismxvi. A $1.2 billion five‑year AI strategy has been announced for supplying GPUs, startup funding, and LLM supportxvii.

Other than this, the Venture Capital (VC) ecosystem plays a vital role in scaling AI technologies from labs to market. The 2024 data on AI-focused VC investments presents a stark contrast between India ($179.3 million) and the global leaders: United States ($34.2 billion), China ($3.3 billion)xviii. India’s VC investments in AI represent less than 1% of the amount invested in the US and only around 5% of what China attracts annually. This funding gap hinders the Indian startups from competing globally, by investing in deep R&D, and build large-scale AI platforms or foundation models. The VC deficit may be attributed to a risk-averse investment culture in deep tech, lack of local benchmark success stories in AI and overdependence on service-based revenue models. If unaddressed, these structural constraints may obstruct India’s potential to become a true AI superpower, in the coming years.

Addressing these capability gaps is critical to consolidating AI as a full-spectrum pillar of national power.

AI as an instrument for India’s foreign policy

As we dive into the Diplomacy aspect, AI can be instrumental for enhances in areas such as India’s cyber diplomacy and digital sovereignty. AI also poses the potential for being instrumental in India’s Foreign Policy, on not only regional but global multilateral platforms

During India’s G20 Presidency in 2023, India led the discussions on ethical AI and digital public goods, which paves a way for India to navigate the partners in shaping the policies on societal AI, at both domestic and international levels. India has strongly voiced for democratizing the access to AI and capacity building in developing nations. India’s IndiaStack (Aadhaar, UPI, Digilocker) is globally recognized for enabling AI applications in authentication, finance, and document access for the economically challenges people across the member countries. This system has been a testament of India’s extraordinary efforts of incorporating AI for developing Open-source Digital Public Goods.

India’s active participation in global AI governance, through the Global Partnership on Artificial Intelligence (GPAI)xix , the G20 AI Framework, and QUAD tech dialogues, displays its ambition to shape AI norms and standards globally. The country also seeks to balance open innovation with digital sovereignty through initiatives like the Digital Public Infrastructure (DPI) framework xx , which it promotes as a model for the Global South. India’s leadership in inclusive digital technologies adds credibility to its AI diplomacy, particularly within the Global South xxi. AI enhances India’s narrative control, agenda-setting ability, and soft power influence not only in the Global South but also across a wide range of global platforms.

India’s active participation in global AI governance, such as through the Global Partnership on Artificial Intelligence (GPAI), the G20 AI Framework, and QUAD tech dialogues, demonstrates its ambition to shape AI norms and standards globally. The country also seeks to balance open innovation with digital sovereignty through initiatives like the Digital Public Infrastructure (DPI) framework (World Bank, 2023), which it promotes as a model for the Global South.

“We commit to advancing interoperable, open, and secure AI technologies that reflect our democratic values and foster trust in AI systems.” xxii — QUAD Leaders’ Joint Statement (2023)

AI has been playing a significant role in India’s ambition for Atmanirbhar Bharat (self-reliant India) and trusted global supply chains. In 2023 Summit, the QUAD members had proposed the engagement on deepening leading-edge collaborative research to harness its artificial intelligence potential along with robotics and sensing to transform agricultural approaches and empower farmers across the Indo-Pacific region, through the Advancing Innovations for Empowering NextGen Agriculture (AI-ENGAGE) xxiii. The same vision was followed in the following summits where the Quad BioExplore Initiative was launched. It was a funded mechanism that will support joint AI-driven exploration of diverse non-human biological data across all four QUAD countries.

India strongly pushes for “AI for All” vision, advocating inclusive and human-centric development, especially for the Global South. It has been promoting Digital Public Goods (DPG) like Aadhaar, UPI, and DigiLocker as global digital solutions powered by AI. It has also been actively participating in various multilateral initiatives like UNESCO’s AI ethics guidelines, OECD AI principles, BRICS AI taskforce,

Way Ahead

India is not merely building AI models; it is building a moral framework for AI development that the world can follow. Its composite nature of technological innovation, digital inclusion and democratic values offers a unique pathway to India’s global leadership. As geopolitical competition intensifies, India's commitment to responsible AI strongly positions it as a societal AI superpower that literally exemplifies the ‘AI for All’.

Through initiatives such as open-source LLMs such as BharatGPT, multilingual NLP models and responsible AI ethics frameworks, India positions itself as a normative AI power. Its emphasis on ethical, inclusive, and human-centric AI resonates strongly in the Global South, reinforcing its soft power credentials

Although Societal AI may hold the largest share in aggregating India’s AI power, the role of intellectual property in AI will be critical for establishing its claim as an AI superpower. India’s aspiration to lead in AI must be met with tangible efforts to improve both patent filings and venture capital infusion. While talent and policy frameworks are evolving rapidly, translating them into globally recognized innovation outputs remains a work in progress. Strategic investments in AI R&D, simplified IP filing processes and a strong domestic investment climate are essential for bridging this gap.

As of now, India has widely focused on ethical design, low-cost deployment and democratized access to AI based services, especially for rural and marginalized communities. India excels in using AI for real-world societal transformation, unlike many nations where AI is concentrated in surveillance, military, or commercial profit, making India a leader in societal AI. But now the question arises, is being a leader in Societal AI, a sufficient condition for India to become a superpower? and is it necessary for a country to be an AI smart power which includes the combination of both soft and hard AI powers, to attain the position of an AI superpower?

India’s rise as an AI superpower with responsibility can define the next decade of global digital leadership. As AI continues to shape economic strength, military innovation, soft power diplomacy, and citizen-centric governance, it is undeniably becoming a fifth pillar of India’s national power, complementing other four pillars viz. economy, defense, diplomacy, and culture

India’s approach to AI has undeniably been democratic, inclusive and human-centric. Diverging from the paths assumed by existing AI superpowers i.e. China’s surveillance model or the US’s corporate-centric ecosystem, India has a potential of presenting an alternative AI Superpower model grounded in digital trust, societal equity, sustainability and global cooperation.

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Endnotes

i Ministry of Health & Family Welfare. (2025, March 21). Measures taken by the government to use AI in the public health system (Press Release No. 2113683). Press Information Bureau, Government of India. Retrieved from https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113683

ii Ministry of Electronics & Information Technology. (2025, March 6). India’s AI Revolution: A Roadmap to Viksit Bharat (Release ID: 2108810). Press Information Bureau, Government of India. Retrieved from https://www.pib.gov.in/PressReleasePage.aspx?PRID=2108810

iii IndiaAI. (2024, November). AIRAWAT: A landmark in India’s AI supercomputing journey. IndiaAI.gov.in. Retrieved from https://indiaai.gov.in/article/airawat-a-landmark-in-india-s-ai- supercomputing-journey?utm_source=chatgpt.com

iv PwC. (2023). AI Economic Impact Study: India 2030

v PMGDISHA. (2023). Progress Dashboard. Retrieved from https://pmgdisha.in

vi Delhi Policy Group. (2023). Implementing Artificial Intelligence in the Indian Military.

vii Toolshero. (2024). DIMEFIL framework explained

viii Ministry of Defence. (2022). Raksha Mantri launches 75 Artificial Intelligence products

ix News On Air. (2025, May 16). Operation Sindoor: Akashteer leads AI-driven strikes on terror launch pads. Author. Retrieved June 22, 2025, from https://www.newsonair.gov.in/operation- sindoor-akashteer-leads-ai-driven-strikes-on-terror-launch-pads/

x World Bank. (2023). AI Compute Readiness Dashboard

xi Stanford University. (2023). AI Index Report 2023. https://aiindex.stanford.edu

xii Data from a 2024 report: China (300,510), U.S. (67,773), India (25,991)

xiii Triangle IP. (2024). AI patent applications filed in 2024: China 300,510; U.S. 67,773; India 25,991.

xiv WIPO. (2024). Global trends in Generative AI patents: China leads with 38,000+, India ranks 5th with 56% CAGR.

xv Pillay, T. (2024, September 5). Ashwini Vaishnaw: Minister of Electronics and Information Technology, India. TIME. Retrieved June 21, 2025, from https://time.com/7012817/ashwini- vaishnaw/

xvi Saran, S. (2023). India’s Strategic AI Moment. Hindustan Times

xvii Financial Times. (2025, April 16). India bets on “frugal innovation” to catch up in global AI race. Retrieved from https://www.ft.com/content/75add375-5854-4fe3-a155-854d6c6f98ba

xviii Ibid.

xix GPAI. (2023). India's role in the Global Partnership on Artificial Intelligence. https://gpai.ai/

xx World Bank. (2023). Digital Public Infrastructure and Inclusive Development in India. https://worldbank.org

xxi Basu, A. (2023). India’s Digital Public Infrastructure and Global AI Diplomacy. ORF Occasional Paper

xxii QUAD Leaders. (2023). Joint Statement from the QUAD Leaders’ Summit, Tokyo. https://www.whitehouse.gov

xxiii Press Information Bureau. (2024, September 22). The Wilmington Declaration: Joint statement from the leaders of Australia, India, Japan, and the United States (Release ID 2057454). Government of India. https://www.pib.gov.in/pressreleasepage.aspx?PRID=2057454

About The Author

Utkarsha Mahajan - Research Fellow, Water Policy Centre and Former Intern & Author at Forum for Integrated National Security (FINS)