India AI policy should prioritize domestic technology capabilities and safeguards against dependence on foreign systems, KPMG executive Dean Grandy said, as geopolitical tensions reshape government priorities.
Key Takeaways
- Grandy called for investment in domestic AI infrastructure, language models and technical skills.
- He said India should develop its own AI regulations rather than wait for a global framework.
India AI policy and domestic capabilities
Grandy, KPMG’s global head for government and public sector, said India needs the ability to develop solutions to national problems and the economic capacity to invest in areas that serve its interests.
For artificial intelligence, he recommended investment in domestic infrastructure, large language models, digital literacy and technical capabilities. India should also be able to respond quickly to problems involving AI access, supply or use, he said.
Grandy said a single global AI regulatory framework was unlikely because of competing national interests. He called for safeguards to protect India’s citizens, businesses and data.
International partnerships remain important
Grandy said no country or region can sustain itself entirely without allies. He highlighted trade arrangements, multilateral agreements and cooperation between like-minded governments as ways to share capabilities and fund investment.
He said geopolitical volatility has shifted government priorities toward national security, leaving less money available for welfare, healthcare and education. Governments are also considering how to secure critical infrastructure and retain control over data.
Grandy described capital outflows as a global phenomenon rather than an issue specific to India. He said the country’s scale, economic growth, young population and expanding AI capabilities provide a foundation for sustainable growth.
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