Advancements in Quantum Technologies

In April 2023, the Indian government approved the National Quantum Mission (NQM) with a budget of approximately ₹6,003.65 crore ($730 million) for the period 2023–2031. This mission aims to propel scientific and industrial R&D in quantum technologies, aligning with national initiatives like Digital India and Make in India. A significant milestone was achieved on September 30, 2024, with the announcement of four Thematic Hubs (T-Hubs) dedicated to:

• Quantum Computing: Led by the Indian Institute of Science (IISc) Bengaluru.
• Quantum Communication: Spearheaded by the Indian Institute of Technology Madras (IIT-M) in collaboration with the Centre for Development of Telematics, New Delhi.
• Quantum Sensing & Metrology: Managed by the Indian Institute of Technology Bombay (IIT-B).
• Quantum Materials & Devices: Overseen by the Indian Institute of Technology Delhi (IIT-D).

These hubs consolidate efforts from 152 researchers across 43 institutions, underscoring India’s commitment to becoming a global leader in quantum science and technology. 

Establishment of the AI Safety Institute

Recognizing the rapid integration of Artificial Intelligence (AI) into various sectors, India has prioritized the ethical and safe deployment of AI technologies. On January 30, 2025, the Ministry of Electronics and Information Technology (MeitY) announced the creation of the IndiaAI Safety Institute (AISI). This institute aims to:

• Set standards for AI safety.
• Identify potential risks associated with AI applications.
• Detect and mitigate damages arising from AI misuse.

Operating on an initial budget of ₹20 crore allocated under the Safe and Trusted Pillar of the IndiaAI Mission, AISI will collaborate with academic institutions, industry stakeholders, and international bodies like UNESCO to ensure AI technologies align with India’s socio-cultural and linguistic diversity. 

Semiconductor Fabrication and International Collaborations

In a landmark move to bolster national security and technological self-reliance, India has partnered with U.S. entities to establish a semiconductor fabrication plant. This collaboration involves:

• Partners: The United States Space Force (USSF), Bharat Semi, and 3rdiTech.
• Focus: Production of silicon carbide, infrared, and gallium nitride chips essential for high-voltage power electronics, advanced communications, and sensors.
• Investment: An estimated $500 million, with phase one production slated to commence in 2027, targeting an annual output of 50,000 units.

This initiative is part of the broader CHIPS and Science Act and the United States-India Initiative on Critical and Emerging Technology, reflecting a strategic effort to secure a robust supply chain in defense-related technologies. 

Satellite Internet Expansion through Starlink

Elon Musk’s SpaceX has forged agreements with India’s leading telecommunications operators, Reliance Jio and Bharti Airtel, to introduce Starlink satellite internet services. These partnerships aim to:

• Enhance Connectivity: Provide high-speed internet access to remote and underserved regions in India.
• Leverage Infrastructure: Utilize the extensive retail and distribution networks of Jio and Airtel for Starlink’s equipment deployment.

While these collaborations promise to bridge the digital divide, challenges such as regulatory approvals and pricing strategies in a market known for affordable data services remain.

Key Challenges in India Tech Revolution

1. Regulatory Uncertainty & Compliance Challenges

Frequent policy changes, delays in approvals, and complex compliance requirements hinder innovation and investment in India’s technology sector.
For example, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme was replaced by the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme in 2024, causing uncertainty among stakeholders.
While the Digital Personal Data Protection Act (2023) provides a legal framework, ambiguities remain regarding cross-border data transfers and regulatory overlaps.
India ranked 63rd in the World Bank’s Doing Business Report (2020), highlighting significant regulatory hurdles.
Additionally, the Securities and Exchange Board of India’s (SEBI) crackdown on unregistered financial influencers led to a 40-60% decline in brand collaborations.

2. Digital Divide & Uneven Internet Penetration

Despite rapid digital expansion, rural internet access remains limited, leading to an uneven technological transformation.
High costs of infrastructure, digital devices, and poor connectivity in Tier-3 and rural areas hinder fintech, e-learning, and e-governance adoption.
Currently, 45% of India’s population (~665 million people) lacks internet access (2023).
The PM WANI Wi-Fi scheme has seen slow implementation, further delaying digital inclusivity.

3. Lack of R&D Investment & Skilled Workforce in Emerging Technologies

India’s spending on research and development (R&D) remains low at 0.65% of GDP (2022), impacting innovation in deep-tech sectors.
The country ranks 14th in AI research globally (2018-2023), contributing only 1.4% of total AI research papers.
There is also a significant talent gap in AI, cybersecurity, quantum computing, and semiconductor design, affecting India’s ambitions in cutting-edge technology.

4. Cybersecurity Threats & Data Privacy Concerns

With India’s expanding digital economy, cyber threats, data breaches, and privacy violations have increased.
Fintech platforms, banking systems, and Aadhaar-linked databases are frequent targets of cyberattacks.
In 2023, India recorded over 79 million cyberattacks, with major breaches such as the AIIMS ransomware attack (2022) compromising sensitive patient data.
By April 2024, ₹1,777 crore had been lost to digital arrest scams, reflecting growing cyber fraud concerns.

5. Dependence on Foreign Technology & Semiconductor Imports

India’s tech sector relies heavily on imported semiconductors, cloud infrastructure, and foreign AI models, making it vulnerable to global supply chain disruptions.
Despite government efforts, local semiconductor fabrication remains underdeveloped.
Recent data indicates that India’s semiconductor imports rose by 18.5% to ₹1.71 lakh crore in 2023-24.
The Micron semiconductor plant is a step towards self-reliance, but key gaps in fabrication persist.

6. Ethical & Social Risks of AI & Automation

Unregulated AI adoption in law enforcement, governance, and recruitment raises concerns over bias, job displacement, and mass surveillance.
McKinsey Global Institute estimates that automation could replace 400-800 million jobs globally by 2030.
Deepfake misinformation and algorithmic biases are also emerging threats.
For example, the 2024 General Elections witnessed AI-generated deepfake scandals, misleading voters and raising concerns over AI ethics.

7. Market Concentration & Lack of Platform Competition

India’s digital economy is increasingly dominated by a few tech giants, limiting competition and innovation among smaller players.
Despite initiatives like the Open Network for Digital Commerce (ONDC), barriers remain for startups challenging market leaders.
Amazon and Flipkart control over 50% of India’s e-commerce sector, making it difficult for small retailers to compete.
In 2023, the Competition Commission of India (CCI) fined Google ₹1,337 crore for monopolizing the Android app ecosystem.

Measures India Can Implement to Strengthen Its Technological Capabilities

1. Expanding Digital Public Infrastructure (DPI) Beyond Finance

India should extend the DPI framework beyond UPI and Aadhaar to key sectors like healthcare, education, and agriculture, ensuring seamless digital access to essential services.

• Develop AI-powered governance systems to optimize welfare distribution, minimize leakages, and enhance real-time policy execution.
• Enable interoperability between health records, educational credentials, and digital identity systems to create a well-integrated digital ecosystem.
• Foster public-private partnerships (PPPs) to co-develop scalable and innovative DPI solutions.

2. Advancing Indigenous Semiconductor & Electronics Manufacturing

• Accelerate domestic semiconductor production under the ₹76,000 crore Production-Linked Incentive (PLI) scheme, ensuring rapid establishment of fabrication units and ecosystem growth.
• Provide incentives for chip design startups and boost R&D in high-performance processors, sensors, and photonics to reduce dependency on imports.
• Strengthen collaborations with global semiconductor firms while simultaneously developing indigenous intellectual property (IP) to secure supply chains.
• Expand compound semiconductor and advanced packaging units to complement fabrication capabilities.

3. Developing India-Centric AI & Cloud Infrastructure

• Invest in sovereign AI models and cloud computing platforms to reduce reliance on foreign services like Google Cloud and AWS.
• Establish AI supercomputing clusters under a national AI computing initiative to support research, startups, and enterprises.
• Implement balanced data localization policies that ensure national security without hindering innovation.
• Promote open-source AI frameworks tailored for Indian languages and governance requirements.

4. Strengthening Cybersecurity & Digital Resilience

• Expand the National Cyber Coordination Centre (NCCC) to proactively counter cyber threats in banking, governance, and defense sectors.
• Introduce mandatory cybersecurity education in schools and corporate training programs to develop a digitally secure workforce.
• Support indigenous cybersecurity startups through targeted funding and government procurement policies, fostering innovation in cybersecurity solutions.

Conclusion

India’s tech future is being sculpted through a combination of strategic domestic initiatives and international collaborations. By investing in cutting-edge fields like quantum computing and AI, establishing critical semiconductor fabrication capabilities, and expanding internet connectivity through satellite technology, India is laying the foundation for a resilient and advanced technological ecosystem. These efforts not only aim to drive economic growth but also to position India as a pivotal player in the global technology arena.