In the recently concluded UN General Assembly session, President Emmanuel Macron of France was one among many who saw deepening divisions among the world’s nations, telling global leaders that effective multilateralism has never been more necessary to rebuild trust and tackle crises.

Transformative Power Of AI

In the emerging multipolar world, technological capability is as decisive as economic or military strength. Among all frontier technologies, Artificial Intelligence (AI) stands out as the most transformative—reshaping governance, industries, and geopolitics alike. Nations that master AI will define global standards, control critical data flows, and influence the digital rules of the future. India, with its vast human capital and digital infrastructure, is positioning itself to be one of these defining powers.

Over the past decade, India has evolved from being a major technology consumer to an increasingly confident producer and policymaker. With a vibrant startup ecosystem, deep digital penetration, and a global talent base, India is emerging as a key player in the global AI landscape. Unlike earlier technology waves dominated by Western or East Asian powers, India’s approach to AI blends scale, inclusivity, and democratic governance—making it a distinctive model for the developing world.

IndiaAI Mission: Building national capacity

At the centre of India’s AI strategy is the IndiaAI Mission, a multibillion-dollar national programme launched to accelerate AI research, infrastructure, and innovation. The mission’s pillars include the establishment of AI compute clusters, centres of excellence, data platforms, and startup incubators focused on AI applications in critical sectors such as healthcare, education, agriculture, and governance.

This initiative seeks to ensure that India is not left behind in the race for AI leadership. While countries like the U.S. and China have long dominated AI research, India’s strength lies in the scale of its talent pool. Each year, millions of STEM graduates enter the workforce, many trained in computer science, mathematics, and data analytics. By connecting this talent with national AI infrastructure, India aims to democratize innovation—making advanced computing resources accessible to startups, universities, and small businesses, not just tech giants.

Public–Private Synergy

Unlike China’s state-dominated AI ecosystem, India has chosen a public–private partnership (PPP) model. The government provides enabling frameworks, digital infrastructure, and initial funding, while the private sector drives innovation and global competitiveness. Collaborations with major technology firms—such as Google, Microsoft, and Infosys—are helping develop AI applications in sectors ranging from telemedicine and climate modelling to precision farming and education technology.

Startups are a critical part of this ecosystem. India now ranks among the top five AI startup hubs globally, with thousands of ventures exploring generative AI, natural language processing, and predictive analytics. The success of Indian AI companies—whether in conversational platforms, credit scoring, or agritech—demonstrates how innovation can emerge from solving local problems at scale.

Crucially, India’s AI ecosystem is backed by a robust digital backbone: the India Stack, which includes Aadhaar (digital identity), UPI (digital payments), and ONDC (open e-commerce network). These systems generate vast anonymized datasets that fuel responsible AI development while ensuring privacy and inclusivity.

AI For Inclusive Growth

What sets India’s AI journey apart is its focus on inclusion. While advanced economies often deploy AI for efficiency and profit, India views it as a tool for social transformation. AI-driven systems are being used to translate educational content into regional languages, predict crop yields for small farmers, detect early-stage diseases, and extend financial services to rural populations.

For instance, AI-enabled precision farming tools developed in India help farmers optimize irrigation and fertilizer use, reducing costs and environmental impact. In public health, machine learning algorithms are assisting in early cancer detection and maternal care outreach. The government’s AI for All initiative aims to train over a million citizens in basic AI literacy, ensuring that digital empowerment reaches beyond urban elites.

By designing AI applications tailored to its diverse population, India demonstrates how technology can bridge, rather than widen, the digital divide. This inclusive model enhances India’s moral and strategic credibility in the developing world, where many nations seek scalable, low-cost technology solutions without authoritarian overtones.

Shaping Global AI Governance

As AI becomes central to geopolitics, India is also asserting leadership in the normative and ethical dimensions of technology governance. It co-chairs several international forums on responsible AI, data ethics, and digital public infrastructure. India’s approach emphasizes transparency, fairness, and accountability—values aligned with democratic governance.

At global platforms such as the G20 Digital Economy Working Group, UNESCO, and OECD-AI policy dialogues, India has advocated for open, human-centric AI standards that protect privacy while fostering innovation. By doing so, it differentiates itself from both the heavily regulated European model and the state-surveillance approach seen elsewhere.

India’s digital diplomacy extends through its Digital Public Infrastructure (DPI) model, which it shares with developing countries in Africa, Southeast Asia, and Latin America. This “digital commons” approach not only deepens global partnerships but also enhances India’s influence in setting the ethical and technical rules of the AI era.

AI And Strategic Power

AI is not just an economic tool—it is a strategic multiplier. Machine learning enhances defence systems, cybersecurity, and intelligence analysis, while autonomous technologies redefine warfare and surveillance. Recognizing this, India is integrating AI into its defence modernization under the Defence AI Council and AI Task Force. Indigenous startups and public-sector labs are developing autonomous drones, predictive maintenance systems, and AI-enabled command networks.

Partnerships with the U.S., France, and Israel are deepening in AI-driven defence research, particularly in drone technology, surveillance systems, and secure communications. This dual-use capability—civilian and military—positions India as both a responsible AI innovator and a credible security actor in the Indo-Pacific.

Challenges and Road Ahead

Despite impressive progress, challenges remain. India’s investment in AI research, while rising, still trails that of the U.S. and China. The country must build stronger university–industry linkages, increase funding for basic research, and improve data infrastructure. Another priority is developing high-quality Indian language datasets to train AI models that reflect India’s cultural and linguistic diversity.

Ethical concerns also loom large. Issues of algorithmic bias, privacy, and job displacement require robust legal and social safeguards. India’s forthcoming Digital India Act and Data Protection Law aim to address these concerns while preserving innovation freedom. Balancing growth with responsibility will be the defining test of India’s AI leadership.

Digital Dimension Of Multipolarity

India’s AI story captures the essence of its rise in a multipolar world—confident, collaborative, and self-reliant. By harnessing technology not only for profit but for public good, India is redefining what digital leadership means in the 21st century. Its blend of innovation, inclusion, and ethics stands in contrast to both Western corporatism and authoritarian technocracy.

As global competition intensifies, AI will increasingly shape economic and strategic hierarchies. India’s goal is clear: to be among the few nations that do not merely consume technology but create and govern it. With its scale, talent, and democratic legitimacy, India is poised to emerge as a true digital superpower—one that shapes, not follows, the rules of the multipolar world.

(The author is an Indian Army veteran and a contemporary affairs commentator. Views expressed are personal. He can be reached at  kl.viswanathan@gmail.com )