India’s Digital Destiny: Building a Tech-Driven Economy for IR4

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Modi government initiatives democratizes access to high-performance computing, empowering researchers, startups, academia, and industry stakeholders to foster an environment of innovation that is both accessible and impactful.

 

As the world accelerates towards a digital-first economy, India is not just participating but actively shaping the digital future. With a strategic focus on Digital Public Infrastructure (DPI), Artificial Intelligence (AI), and semiconductor and electronics manufacturing, India is laying the foundation for a self-reliant and technologically advanced economy. The government’s push for indigenous innovation, global partnerships, and regulatory reforms is propelling India into a leadership position in the digital age.

Semiconductors and electronics serve as the foundation, while Digital Public Infrastructure (DPI) acts as the catalyst driving India’s technological transformation. Through a unique AI framework, India is making artificial intelligence accessible to all, fostering a more inclusive and innovative digital ecosystem.

Digital Public Infrastructure (DPI)

India’s groundbreaking efforts in Digital Public Infrastructure (DPI) have left a lasting impact on the global digital ecosystem. Unlike models dominated solely by corporate entities or state control, India has pioneered a unique public-private partnership approach. Leveraging public funds, the country has built robust digital platforms such as Aadhaar, UPI, and DigiLocker. These foundational infrastructures serve as a launchpad for private enterprises to innovate and develop user-centric applications tailored to diverse needs.

India’s Digital Public Infrastructure (DPI) has revolutionized governance, financial inclusion, and public service delivery. With over 1.3 billion Aadhaar enrollments, India has established one of the world’s largest biometric-based identity systems, ensuring seamless authentication for financial transactions, welfare distribution, and e-governance. The Unified Payments Interface (UPI) has further transformed the fintech landscape, processing billions of transactions monthly and fostering innovation through its open API framework. Additionally, the Open Network for Digital Commerce (ONDC) aims to democratize e-commerce by breaking platform monopolies and empowering small businesses. Platforms like DigiLocker and CoWIN have showcased India’s ability to provide secure and scalable digital services, particularly in health and document storage, reinforcing the nation’s leadership in digital governance.

By leveraging DPI, initiatives like the Mahakumbh event have set global benchmarks for tech-enabled governance, disaster management, and public administration. India’s DPI model is being adopted by other countries, reinforcing its leadership in digital governance. The foundation laid by Aadhaar, UPI (Unified Payments Interface), and the India Stack has transformed the way citizens access financial services, governance, and digital identities.

Artificial Intelligence

India’s AI strategy focuses on leveraging technology for social good, economic growth, and national security. With the establishment of the India AI Mission, the country is making significant investments in AI research, innovation, and ethical governance.

India is making artificial intelligence (AI) more inclusive through an unprecedented AI framework. A crucial step in this direction is the establishment of a common compute facility equipped with 18,000 Graphics Processing Units (GPUs). Offered at a subsidized rate of less than ₹100 per hour, this initiative democratizes access to high-performance computing, empowering researchers, startups, academia, and industry stakeholders. By facilitating the development of AI-driven applications—ranging from advanced healthcare diagnostics to sophisticated machine learning models—India is fostering an environment of innovation that is both accessible and impactful.

Artificial Intelligence (AI) is playing a transformative role in India’s public services, enhancing efficiency and accessibility across various sectors. In agriculture, AI-driven solutions aid in crop yield prediction and smart irrigation, optimizing resource use and boosting productivity. The healthcare sector benefits from AI-powered early diagnosis and telemedicine, ensuring timely medical intervention, especially in remote areas. Governance is also leveraging AI through chatbots for citizen services and crime analytics for improved law enforcement. India’s thriving AI startup ecosystem, supported by premier institutions like IITs and IISc, is driving advancements in deep learning, natural language processing, and computer vision. As AI adoption grows, the government is prioritizing ethical AI frameworks to ensure fairness, transparency, and data privacy. Additionally, AI is being integrated into national security, strengthening cybersecurity, intelligence operations, and defense systems, reinforcing India’s digital sovereignty in an increasingly technology-driven world.

Semiconductor and Electronics Manufacturing

Recognizing the strategic importance of semiconductors, India has launched initiatives to develop a domestic semiconductor manufacturing ecosystem. The Semicon India Programme aims to position India as a global hub for chip design and fabrication. The Digital Personal Data Protection Act has set the stage for robust data governance, and soon we will witness another milestone – the launch of India’s first Make in India chip this year.

India is rapidly strengthening its semiconductor and electronics manufacturing ecosystem to reduce import dependency and establish itself as a global leader. The country already has a robust fabless design industry, with companies like Tata Elxsi, Wipro, and HCL innovating in chip design. To take this further, the government is aggressively promoting semiconductor fabrication plants (fabs) through initiatives like the Production Linked Incentive (PLI) scheme, which offers substantial financial incentives to global manufacturers, attracting investments from giants like Intel, TSMC, and Micron. Additionally, India has forged strategic partnerships with Taiwan, the US, and Japan to enhance supply chain resilience and facilitate technology transfer. The electronics manufacturing sector is also witnessing remarkable growth, with India emerging as the second-largest mobile phone producer, driven by Apple and Samsung expanding their production facilities. These efforts align with the broader Make in India and Atmanirbhar Bharat vision, positioning India as a key player in the global semiconductor and electronics landscape.

A future-ready workforce

India is rapidly emerging as a global hub for research and technological advancement, with new Global Capability Centres (GCCs) being established every week. To sustain this momentum, the focus is shifting towards integrating AI education at all levels—from school curriculums to advanced university programs.

As India develops a future-ready workforce, its AI regulatory framework aims to balance innovation with responsible deployment. Instead of a “heavy-handed” approach that could hinder progress or a “market-driven” model that centralizes control among a few, India is adopting a pragmatic, tech-legal strategy to ensure inclusive and sustainable growth. At the same time, large-scale skill-building initiatives are equipping professionals with the expertise needed to thrive in an AI-driven economy. Recognizing the need for a balanced regulatory approach, India is charting its own path—one that fosters innovation without stifling it and ensures AI governance remains inclusive, accountable, and future-ready.

India’s digital future is being shaped by visionary policies, strategic investments, and global collaborations. By harnessing the potential of DPI, AI, electronics and semiconductor manufacturing, India is not only becoming a global digital powerhouse but also ensuring that technology serves its citizens and economy. The next decade will be crucial in determining India’s role as a leader in the Fourth Industrial Revolution, setting a benchmark for digital transformation worldwide.


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Shivesh Pratap

Shivesh Pratap is a management consultant, author, and public policy analyst, having written extensively on the policies of the Modi government, foreign policy, and diplomacy. He is an electronic engineer and alumnus of IIM Calcutta in Supply Chain Management. Shivesh is actively involved in several think tank initiatives and policy framing activities, aiming to contribute towards India's development.

https://visionviksitbharat.com

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