India Must Prioritise Telecom Infrastructure, Open Data To Unlock AI Potential: EY Report
The report outlines key policy considerations aimed at expediting AI development and ensuring its democratisation.

EY India has released a report, titled Realising AI for All in India, which highlights the necessity for sustained policies and emphasises the role that government intervention can play in fostering the beneficial utilisation of AI technology.
The report outlines key policy considerations aimed at expediting AI development and ensuring its democratisation. These include revitalising telecom investments, catalysing an open data ecosystem, fostering research initiatives, implementing ethical AI practices and reforming education to meet the demands of the AI era.
“India has made significant strides in positioning AI as a leading development tool. However, to access India’s readiness to drive widespread social impact, the government must address key areas including technology infrastructure, research capabilities, skills development, regulatory environment and the establishment of ethical AI guidelines,” said Prashant Singhal, telecom leader, Indian member firm of EY Global.
The report outlines six considerations to position India as a hub for AI:
Open Data Ecosystems: Data and AI hold the potential to address dual goals of economic and social value creation and recovery. Open data ecosystems are important for advancing AI development, and the report emphasises the need for data infrastructure in sectors such as agriculture, healthcare and mobility. As part of the IndiaAI Mission, the government will develop a non-personal data collection platform accessible to Indian startups and companies.
Investments In Telecom Infrastructure: For reviving telecom infrastructure to support AI applications, steps include reducing telecom levies, minimising Right of Way charges and subsidising fibre deployment costs. Collaborating with operators for rural connectivity and implementing TRAI's recommendations can expedite deployment. Additional initiatives involve de-risking handset financing, reducing taxes on entry-level smartphones and encouraging private players to establish ecosystems for refurbished handsets in rural areas.
Promote AI Research And AI CoE: To advance AI in India, it's important to focus on regional language research, establish AI centres of excellence and create tailored datasets for major Indian languages. The report suggested investment in research and development of algorithms and models for Indian languages and collaboration between industry regulators, private players, academia, investors and venture capital firms to expand the regional-language applications and content. It also recommended state-level CoE hubs for AI, with generative AI and computer vision as focus areas, and sector-driven CoE such as those for agriculture, education and public services.
AI Clusters For Rural Innovation: For a self-reliant AI ecosystem, vital initiatives include aligning AI clusters with government bio-incubators under Startup India. According to the report, India should step up AI funding and provide targeted incentives to promote commercialisation of AI applications. Also, rural innovation through funds for AI startups in rural areas, along with incentivising AI-allied industries in hi-tech manufacturing, like chips and networking equipment, are important.
Ethical AI Frameworks: Efforts are needed to address issues of algorithmic bias and other ethical considerations. AI ethics guidelines must be set up, and bias prevention, detection and mitigation in AI systems must be inculcated. Open-source AI testing frameworks and toolkits can support startups, researchers and public/private entities, the report added.
Public Awareness Of AI: India needs to incorporate fundamental aspects of AI systems starting from the secondary school level. Create mandatory training around automated decision systems’ societal, legal, ethical and political impacts. Impart working knowledge for non-professional users of AI, build teaching capacity and accelerate digital delivery of education, the report said.