In an extensive conversation with The Secretariat, Union Public Service Commission (UPSC) Chairperson Ajay Kumar addresses this million-dollar question, unpacking the evolving AI ecosystem.

"India’s AI moment is already here; whether it becomes transformational or merely incremental depends on the choices we make now on data, talent, institutions, trust, and strategic intent," Dr. Kumar said.

Days after the release of his book, AI Nation: Bharat’s Path to AI Power, the UPSC Chairperson emphasised that "India’s AI future will depend not on ambition, but on choices around compute, data, institutions, and policy". 

"Innovation alone will not decide India’s AI trajectory," Dr. Kumar told The Secretariat. "Computing without access, data without governance, and models without accountability will only deepen dependence — not power," he pointed out.

Forging AI Future

The UPSC Chairperson also raised a pertinent question: Are we shaping AI or letting it shape us?

AI impacts all of us. The decisions we take now can define how India is going to play a key role globally. Datasets, compute power, prompt engineering, and AI Research and Development will make the difference

— Ajay Kumar, Chairperson, UPSC

Dr. Kumar lamented that India was still lagging on the AI front, as compared to the US and China. "The GPU capacity is very low in India. An optimal way to utilise and further develop it is needed," he said, and recommended the creation of apps in areas such as agriculture, health, finance, and governance, besides democratising computing for startups.

"By ensuring the establishment of data centres by offering them tax incentives, India will become an AI power. This was proposed by the Union Finance Minister Nirmala Sitharaman in the recent budget," Dr. Kumar added. 

The Budget includes several key measures aimed at accelerating growth in the Electronics, Information Technology and Artificial Intelligence ecosystem. To further encourage long-term investments, the Budget 2026-27 proposed a tax holiday till 2047 for foreign companies providing cloud services to customers globally using data centre services from India. The long-term policy framework for data centres up to 2047 positions India among the leading global destinations for AI and cloud infrastructure. 

Why AI Is Essential 

The senior bureaucrat also emphasised that over the next few years, it is essential "to be in AI-haves" and "not AI-have-nots" to leverage benefits in education, health, agriculture, and the manufacturing sector. 

“Achieving these benefits requires more than just access to AI technologies; it necessitates a supportive ecosystem that encourages innovation while enforcing safeguards to minimise misuse and unintended consequences," he said. 

India’s population became digitally active only recently; it may lack the awareness, digital literacy, and precautionary habits that are common in more developed economies. Without careful planning, unregulated AI could exacerbate existing inequalities, misinform citizens, or even compromise security

— Ajay Kumar, Chairperson, UPSC

He also proposed a "3-3-3 framework" to further streamline and optimise the AI ecosystem:

• Permissive development ecosystem, 
• Risk-based controls;  
• And effective accountability and control