India AI ambitions will depend on strengthening talent, research, computing infrastructure and data systems, according to a KPMG report on how the country can turn emerging technologies into economic and social benefits.

Key Takeaways

  • KPMG identified five building blocks, including research, scalable enterprises and digital public infrastructure.
  • The report cited India’s digital payments ecosystem as an example of a platform that enables wider innovation.
  • AI deployment should be ethical, secure and inclusive, the report said.

What India AI ambitions require

KPMG said developing technologies alone would not be enough: India also needs the capabilities to deploy them at scale. Its five building blocks are talent, research and development, computing and data infrastructure, enterprises that can scale technology, and digital public infrastructure.

The report called for skilled workers across research, engineering, data science, design and technical trades. It also highlighted the need to strengthen research in universities, laboratories and businesses, and to move discoveries into commercial use.

For AI, computing capacity and secure, well-governed data ecosystems are particularly important, KPMG said. Start-ups and established businesses also have a role in building and scaling products and services.

Digital payments offer an example

KPMG pointed to the Unified Payments Interface, or UPI, as an example of how public digital infrastructure can support innovation and change economic activity. UPI processed more than 24,161 crore transactions worth around ₹314 lakh crore in FY2025-26 and had onboarded 55.49 crore users as of June 2026.

The report said the opportunity is to apply that experience to emerging fields including AI, semiconductors, quantum and space technologies, drones, green hydrogen, rare earths and biotechnology. It identified manufacturing, healthcare, agriculture, education and governance as areas where AI could enhance human capabilities, while stressing the need for responsible deployment.

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