When I was watching a movie with AI concepts, I found myself questioning the reality behind it. It’s astonishing how swiftly AI has entered into our everyday lives. AI has an impact on various domains with large language models, highly personalised experiences, and advanced computer vision.

Many leading countries, such as the US, China, and Korea, have started working on AI research to use advanced technology for their welfare. India is making its mark by investing significant resources in advanced AI research and development processes. India has allocated funds to AI expansion and digital transformation to use them to improve the nation's standards.  

Dive into our blog for in-depth insights on budget details and explore the transformative power of AI and digital transformation. Also, discover how these advancements can reshape your future!

India Budget 2025 Focusing on AI and Digital Transformation

Many countries are shifting their focus towards AI research and development. India is also joining the list, which was made official after announcing the 2025-26 budget plan. AI is about to become indispensable to society because of its versatile benefits like learning, research, diagnostics, and designs. India has planned to involve AI in multiple industries like agriculture, business, and healthcare that can result in economic growth. 

The Indian Government plans to allocate ₹2000 crore for the AI mission. This is 1056% higher than the budget allocated for 2024-25. Such a drastic increase shows the importance of AI in the future. 

Digital transformation is also vital in budget planning since India is concerned about making a Digital India. The government has allocated ₹782 crore for digital transformation, which is 143% higher than the budget allocated for 2024-25. 

The budget plan clearly states that India is making a significant leap towards improving AI and digital transformation. AI Centres of Excellence are to be established all over the country to support the research and development of AI. The steps include Atal Tinkering Labs for implanting AI skills among young minds in the nation and promoting AI awareness and knowledge among people. 

Government Vision for AI Expansion 

The Indian government has planned a comprehensive strategy for the expansion of artificial intelligence, which includes multiple phases of action. AI development is set to be used in major industries like agriculture, health, climate change and sustainable cities. AI Centres of Excellence are about to work on deep research to create scalable AI solutions for multiple purposes. 

1. The Phases Behind the AI Expansion

• Research and Development

The government has allocated a budget for AI research institutions across the country. This investment is for setting a detailed research and development plan. The study is based on existing AI models and advanced functional exploration of AI. 

• Skill Development Programs

Since AI involves knowledge in machine learning, natural language processing, programming skills, and deep learning, a skilled workforce is required to work on AI implementation. Steps like Atal Tinkering Labs are taken to develop knowledge of AI in ordinary and young minds.  

• Implementation in Different Industries

The Indian government has planned to implement AI in industries like healthcare, agriculture, and education, which are crucial for a country’s development. AI can make noticeable advancements and help people.

2. The Main Objectives of the IndiaAI

• Intelligent Support

The implementation of AI to develop intelligent systems that help in different decision-making that enables connectivity and enhances productivity

• Addressing Social Needs

The country plans to use AI in the systems connected to India’s societal needs in healthcare, education, agriculture, smart cities, infrastructure, and mobility.

• Develop an Application with an Intelligent System

Artificial intelligence can be leveraged to develop highly sophisticated applications applicable across various industries.

Also Read: AI in Project Management - Revolutionizing Project Delivery

Government Strategies for Digital Transformation 

India is moving towards making a digital transformation uniform across the nation. The government had already taken some steps to initiate the process. The government is now increasing the pace of the transformation with this budget planning. The main pillars of digital transformation are

1. Ensure Digital Connectivity

The Ministry of Communications has published recent data regarding connectivity across the country. The transformation program is concerned with increasing the network accessibility to the urban, rural, and villages nationwide. 

This initiative increases innovation, e-governance, and digital entrepreneurship. Bharat Net Project is regarding connectivity, and this project plans to lay the optical fibre connection throughout the nation. India plans to connect the mobile network and internet to the hilly and terrain regions. 

2. E-Governance

Digital e-governance is an initiative to bridge the gap between the government and citizens. This process has improved handling by streamlining essential services, most notably transparently and free from corruption. 

This made the citizens use the e-governance services. The government has made multiple services available for citizens directly and efficiently, revolutionising the way of interaction with the government!

A few examples of e-governance platforms are

• CO-WIN: During COVID-19, the government used this platform to manage all citizens' vaccinations details. 

• Unified Mobile Application for New-age Governance: Mobile software provides multiple government services to citizens in one place.

• MeriPehchaan: A single online platform that allows citizens to access various government portals in one place. 

• Parivahan: A portal that allows citizens to use the various services on driving licence and vehicle-related services online. 

What Industries Can Benefit from AI Expansion?

India plans to use AI in multiple industries like healthcare, agriculture, education, smart cities and infrastructure, and smart mobility. AI has diversified utilisation, and it spreads benefits to many more industries. Here are use cases of AI in different sectors:

1. Healthcare

AI technologies can be beneficial in the healthcare industry. Advanced AI products can supplement the insufficient personnel and lab facilities, helping with early detection, diagnosis, decision-making, and treatment. 

• Cancer Screening and Treatment

Cancer is one of the significant medical issues in India. AI is planned to be used in areas of cancer identification during the early stages, ahead of the traditional method. India sees more than 1 million cancer cases every year. Early detection can help treat and manage threats efficiently. The National Institution for Transforming India Aayog works closely with AI to devise such an identification method.

• Diabetic Detection

NITI Aayog is also working with private technical giants like Microsoft and Forus Health to make technology that supports the early detection of diabetic retinopathy.

• Detection of Common Eye Problems

3Nethra is a device that combines AI capabilities used for retinal imaging to find common eye problems. AI capabilities help to get AI-powered insights into patient’s eyesight. 

AI-based healthcare solutions can be more revolutionary than imagination in healthcare services and more efficient with effective preventive methods.

2. Agriculture

Agriculture is a significant industry in India's economy, and the allied sectors contribute to its economic growth. 

Factors like soil conditions, improper crop knowledge, and a lack of fertiliser knowledge affect agriculture. AI can help the sector grow in many parts. 

• Soil Health Monitoring

Deep learning, image recognition, and machine learning can be used to check soil health without requiring laboratory testing. Farmers can then take the required actions to restore soil health using AI's image and soil tests.

• Crop Health Monitoring

Climate change is also a significant factor affecting agriculture in India. Temperature changes and scarce or plentiful rain can cause defects in crops. AI imaging can detect the exact reason for crop disease. AI can even measure the ground water level and moisture, supporting crop cultivation.

• Providing Real-time Advisories to Farmers

AI can be used to provide advisories on pest control and suggest fertilisers for farmers to increase productivity. Highly accurate weather data from AI technologies can be great reformers of agriculture. 

3. Education

Education is one of the major domains that can support the country to a greater extent. AI has chances for significant influence vested in education. The advanced education support can create a revolution and transformation in different industries. 

• Customised Learning

AI has the potential to assist students with customised learning. Handling multigrade classrooms based on the learning capacity of particular students can be done with the help of an AI combined application.  

• Advanced Interactive Tutoring

AI can help provide interactive learning to students with advanced visual and audio study materials. Interactive assessments and student reports can show the student's level and help with intensive learning. Using chatbots for interaction and doubt clarification can support individual attention to students.

4. Smart Cities and Infrastructure

The country’s growth is also showcased through its infrastructure. AI can be an important part of improving the infrastructure of cities and upgrading them to smart cities. 

• Smart Public Facilities

Maintenance and upgrading of public facilities such as parks and other spaces, can be done with the help of AI. AI-supported devices can be used to keep public spaces clean and monitor them on a regular basis. The use of AI in monitoring systems like pavement lighting, water maintenance, and other operational effects will help save on costs.

• AI-Based Service Delivery

AI combined with machine learning can help in evaluating the surge for any service in any surroundings. Based on the data, the services in a particular area can be assigned. For example, based on machine learning, allocating the public transport service in populated route is possible. This will increase the efficiency of the service and allow it to be used based on requirements, saving multiple resources.  

Challenges Involved with AI Expansion 

AI expansion has multiple benefits to society. However, it also comes with certain drawbacks that may lead to various challenges for individuals and communities. Below are some key risks associated with the growth of AI technology:

• Technical Challenges

Adapting AI to the existing model requires more technical knowledge, which can be challenging for common people. Scaling AI models for large volumes of data and complex applications can be challenging. 

• Human Factors

There are fewer knowledgeable and qualified data scientists and AI engineers.

When a new system emerges, some resistance may be there that delays the adoption of new AI-powered tools and workflows. 

• Economic and Societal Impacts

Concerns over potential job losses due to automation driven by AI. Developing clear guidelines and regulations for the development and deployment of AI systems

Also Read: Automation vs AI: A Deep Dive Into Their Differences

Challenges Involved with Digital Transformation

• Data Management: Data security and privacy concerns are the main challenges involved in the digital transformation. Poor data quality and data governance. Digital transformation involves modernisation combined with various factors like technologies, strategies, and proc, which can be challenging when implementing and managing AI.
• Customer Experience: Adapting to evolving customer expectations and digital behaviors. Difficulty in providing seamless multiple services with good customer experience. 
• Skills gap: There is a shortage of skilled and experienced persons to drive digital transformation efforts, creating a significant talent gap that organisations must address.

In Brief

Experiencing GPT and many other AI applications, people believe that it has the potential to change multiple industries. India also believes in its potential and is taking steps towards the AI vision and digital transformation. This action will change the country's various industries, such as agriculture, healthcare, and education. 

Since AI is in the evaluation stage, it has some challenges. Effective methods must be found to overcome these obstacles. Digital transformation also enhances the relationship between citizens and the government. 

Whenever new technology is introduced, we fear its challenges, but humans have overcome them multiple times. Soon, we will witness another efficient AI from India.