At a time when global attention is fixed on large and expensive AI models, the latest Economic Survey has taken a different view. It has positioned artificial intelligence as a tool to solve real economic and governance challenges, rather than a race to build the biggest and most capital-intensive systems.
In a dedicated chapter on AI, the Survey said India’s strength lies in application-led deployment. It argued that the country should use its late-mover advantage to adopt AI in a measured way, aligned with its economic structure, institutional capacity, and resource limits.
Instead of competing with advanced economies on large foundation models that demand massive computing power and high energy use, the Survey recommended focusing on low-cost, high-impact AI applications designed for domestic needs.
Focus on service delivery
The Survey highlighted that AI can significantly improve service delivery and productivity in sectors such as healthcare, agriculture, education, urban governance, and disaster management. It noted that India’s digital public infrastructure, growing Internet penetration, and increasing data availability provide a strong base for deploying AI solutions that address local problems.
However, it cautioned against treating AI as a standalone fix or a replacement for institutional reform. According to the Survey, success will depend on parallel investments in data quality, digital infrastructure, skills development, and governance systems.
It also stressed the importance of coordination between government, industry, and research institutions to ensure AI development remains aligned with public interest goals.
Resource efficiency and governance
A central theme of the chapter is resource efficiency. The Survey pointed to rising global AI compute costs, driven by shortages of advanced chips and energy-intensive data centres. It warned that over-reliance on high-end infrastructure could create economic and strategic risks.
To address this, the Survey advocated building lighter, domain-specific models that can function well in low-resource environments.
On governance, the document underlined the need for strong safeguards as AI becomes more embedded in economic and administrative decisions. It said frameworks for data use, accountability, and system reliability must evolve alongside AI deployment, not after risks emerge.
The Survey described India’s large and diverse population as an advantage for developing AI use cases at scale, especially in multilingual and low-bandwidth contexts. It pointed to opportunities in voice-based services, decision-support tools for frontline workers, and automation of routine public services.
Overall, the Survey presented AI as an enabling layer, not a standalone growth engine. Its core message is clear: India’s AI strategy should focus on inclusion, affordability, and real-world impact rather than technological prestige.
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