India also stands at the brink of a technological revolution. The newly formed government's policies and initiatives, although expected to reflect and build on the initiatives of the past, are set to play a crucial role in shaping the digital landscape over the next five years.

The Prime Minister is set to release his government’s 125-day vision in the next week and it is expected to be packed with widespread technology adoption, digital empowerment, and the use of Artificial Intelligence (AI). Let’s take a look at what can be expected in terms of tech policy initiatives.

1. Artificial Intelligence Regulation

First things first, India needs a robust law to govern the deployment of artificial intelligence in India. Various frameworks have come out of governmental organisations and ministries, like the National Strategy for Artificial Intelligence (June 2018), Principles for Responsible AI (February 2021) and Operationalizing Principles for Responsible AI (August 2021) to name a few. But, we don’t have any specific laws or regulations that directly regulate AI.

The Information Technology Act of 2000 (which will be replaced by the forthcoming Digital India Act of 2023) and the Digital Personal Data Protection Act (DPDP) of 2023, which is yet to come into force, will also play a crucial role.

Like the European Union’s AI Act - which is touted as the world’s most robust AI regulation - India too needs to create a regulatory framework that encourages innovation while ensuring ethical use of AI technologies. 

2. IndiaAI Mission & The Brain Drain Issue

As we wait around for AI regulation, it is imperative that India keeps up the momentum in investing in infrastructures and research to enable an AI ecosystem. India is ramping up investment in data centers, with both the government and private companies jumping in to meet the booming demand for cloud services. At the same time, the government is pushing to grow the domestic semiconductor industry, a tough but crucial move for the country's tech future.

In March this year, the government allocated Rs 10,300 crore for the IndiaAI Mission, marking a significant financial investment over the next five years. This funding is set to boost India’s computing capacity by introducing more high-performance computing systems, semiconductors, data centers, and cloud computing resources essential for training AI models. This injection of Rs 10,300 crore will also be used for academic purposes, funding for AI startups and retention of top research talent.

India does very poorly in retaining its elite AI researchers, which should be a top priority for the government. As per the Global AI Talent Tracker 2.0, India produces over 8 per cent of the total elite AI research workforce in the world but is only able to retain 1/5th of them.

This is largely because India doesn’t have the same quality of research facilities and faculties in countries like the US, South Korea, and China, and there is also the matter of better pay. 

To put into context, OpenAI invests close to $1 million into each researcher. India can’t match that because it lacks substantial financial resources, making it challenging to provide the same level of support and opportunities for AI researchers.

India needs to significantly increase its investment in research and development to stay competitive on a global scale.

3. Digital India 3.0

Under the Digital India initiative, Digital Public Infrastructures (DPIs) have created an essential network enabling people to connect and access a wide range of goods and services. 

A lot of what the DPI encompasses is already established in India, like the digital identity systems ‘Aadhaar,’ digital payment platforms such as the Unified Payments Interface (UPI), Aadhaar-based e-KYC to authenticate an individual's identity electronically, etc.

Together, these components form an integrated digital ecosystem essential for economic development, social inclusion, and effective governance in the digital age. 

This and further development is set to drive India toward a $1 trillion digital economy by 2030, contributing to the country's goal of becoming an $8 trillion economy overall, according to a Nasscom-Arthur D Little report.

In the last seven years alone, India's DPI model has achieved over 80 per cent of financial inclusion of its citizens and also accounts for 60 per cent of all global digital transactions in the world. But what else can the government do?

In the next few years, the Modi government should plan to expand high-speed internet to rural areas, boost digital literacy for seniors, and make e-governance services more accessible and efficient. 

They should also aim to streamline social security benefits, offer digital solutions for farmers, share DPI with partner countries, expand 5G networks, and lead in 6G development. 

Building on these digital learning initiatives, a digital university will be launched to provide free, industry-focused courses for upskilling low-income families.

4. Data Protection Act

India is the world’s most populous country, which means there is a lot of data churned out every day. Everything is data. A person’s browser activity is data. Swiping a card at a supermarket is data. 

Data is a double-edged sword, for it can be used as an instrument in policymaking and empowering citizens, but can also be used to manipulate people’s information against them. Huge amounts of data is being fed into machine learning softwares every day to analyze behaviours, interests and demographics. 

Currently, India has over 820 million active internet users, with rural areas accounting for more than half of this number at 442 million. That is a lot of data being generated on an everyday basis, which comes back to netizens in the form of targeted ads or their data is sold off to a third-party vendor. This is all happening in the background, so it’s difficult to ascertain how big the damage is.

How do we protect Indian citizens from this breach of their private data? The answer lies in the implementation of the Digital Personal Data Protection Act, which was passed in 2023 but not yet implemented. This is important because clear standards on how personal data should be collected, processed, and stored must be set. The Act also imposes a penalty of up to Rs 250 crore on businesses and entities that misuse people's data.

The Act enhances transparency between users, businesses, and government entities, fostering trust in digital interactions.

In conclusion, the Indian government's technology policies over the next five years are set to drive significant transformation across various sectors. By prioritising the above, India will be able to harness the full potential of technology to propel economic growth and improve the quality of life for its citizens.