The Need for India to Become AI-Proficient: A Strategic Imperative, Not Just a Technological Choice

India is at a defining crossroads. While the world moves full throttle into the age of Artificial Intelligence (AI), we must ask ourselves: Will India shape this future or merely consume it? For a country that has for long prided itself on its intellectual capital and IT prowess, failing to lead in AI would not just be a missed opportunity—it would be a strategic blunder.

This isn’t hyperbole. It’s the hard truth in a world where algorithms are increasingly controlling economies, influencing democracies, and even deciding battlefronts. The need for India to become AI-proficient is not about joining a technological bandwagon; it’s about securing our economic future, strengthening our national security, and asserting our sovereign voice in the evolving global order.

The Economic Case for AI Proficiency

Let’s begin with numbers. According to a report by NASSCOM and EY (2024), AI and related technologies are expected to contribute USD 967 billion to the Indian economy by 2035, which would amount to roughly 15% of India’s current GDP. That’s not a statistic to be taken lightly. A McKinsey Global Institute study further reinforces this by estimating that AI could add USD 13 trillion to the global economy by 2030—and India can command a significant slice of that pie if we act with urgency.

India’s current AI adoption rate across industries stands at around 30%, much lower compared to the United States (65%) and China (58%). This gap is both a challenge and an opportunity. With our demographic dividend, digital public infrastructure, and an IT services backbone, we are poised to leapfrog—but only if we invest now, not five years from now.

Demographic Leverage and the Need for Skilling

India has the world’s largest youth population—over 50% of its population is below the age of 30. That’s over 650 million individuals who will be the economic engine of this country in the next two decades. But here lies the paradox: While we’re rich in people, we’re poor in AI talent.

As per the World Economic Forum (2023), India faces a shortage of 1 million AI and data science professionals. Currently, only 2.5% of our engineering graduates are industry-ready for roles in AI, according to an Aspiring Minds survey.

We have the numbers. What we lack is strategic foresight in skilling. AI proficiency should be introduced at the school level, not just reserved for postgraduates in IITs and IIITs. Coding, data literacy, ethical frameworks of AI, and machine learning basics must become part of our mainstream education system, or else we risk raising a generation of consumers in a world built by creators.

AI as a Tool of National Security

We must not delude ourselves—AI is not just a tool of productivity; it’s a tool of power. Militaries across the world are embedding AI in surveillance systems, autonomous drones, predictive threat analysis, and even cyber warfare. China’s doctrine of “AI supremacy” is already reflected in its 2030 AI development plan, which aims to make it the global leader in AI by—no surprises—2030.

The United States, too, has the JAIC (Joint Artificial Intelligence Center) fully embedded into its defense command. India cannot afford to remain a passive observer in this AI arms race. In fact, the recent establishment of DAIC (Defence AI Council) and iDEX (Innovations for Defence Excellence) is a good start—but far from sufficient.

We must push for an integrated National AI Defence Roadmap with joint participation from DRDO, ISRO, the armed forces, and private AI startups. Make no mistake: the next war may be won by code, not by cannon.

AI, Governance, and India’s Digital Public Infrastructure

If there’s one area where India already has a head-start, it’s in its Digital Public Infrastructure (DPI). Aadhaar, UPI, Digilocker, and ONDC are unique global examples of how a government can deploy technology for mass empowerment. Now imagine integrating AI with these systems—not to monitor citizens Orwell-style, but to deliver precision governance.

Imagine AI-powered health prediction tools in rural India integrated with Ayushman Bharat, or AI-based fraud detection in welfare distribution through JAM trinity (Jan Dhan, Aadhaar, Mobile). We already have the pipes; now we need the intelligence flowing through them.

This is where India can build a model that balances AI innovation with ethical oversight. In contrast to the data colonialism of Western tech giants or the surveillance capitalism of authoritarian regimes, India can offer the world a third path—Democratic AI.

Policy and Industry: Need for Cohesion

India launched the National AI Strategy (NITI Aayog’s #AIForAll) in 2018, but progress has been sluggish. The newly formed IndiaAI Mission with a budget of ₹10,371 crore (~USD 1.25 billion) is a step in the right direction, but this budget pales in comparison to China’s USD 70 billion+ annual AI investments.

We need more than token initiatives. We need:

•AI clusters and parks across states like Gujarat, Karnataka, Telangana, and Tamil Nadu.

•Tax incentives for companies investing in AI R&D.

•Cross-ministry task forces to ensure AI is not isolated to the IT Ministry but also integrated with Health, Education, Agriculture, and Defense.

•Public-private partnerships to ensure academia doesn’t remain in silos and that innovation has real-world impact.

The Ethical Question: Building a Responsible AI Ecosystem

With power comes responsibility. As we rush towards AI deployment, we must not ignore the ethical dilemmas. Bias in algorithms, job displacement, privacy concerns—these are real challenges. But the answer is not to fear AI; it’s to govern it intelligently.

India must lead the conversation on AI ethics in the Global South. The West cannot be the sole arbitrator of AI morality, and China’s model is unsuitable for open societies. India, with its pluralistic and constitutional values, can become the moral compass of global AI governance.

India’s AI Moment is Now

AI is not science fiction. It is not some future abstraction. It is the new electricity—quietly, relentlessly powering every aspect of our lives. The question is whether India wants to sit in the dark or generate the current that lights up not just our own future, but potentially that of the Global South.

The world doesn’t wait for latecomers. The AI train is already moving. The only question that remains is whether we will be in the driver’s seat or waving from the platform as it speeds past.

India doesn’t just need to be AI-proficient. It needs to be AI-powerful—because in the age of intelligent machines, nations that lead in AI will not just shape economies, they will shape humanity’s destiny.