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AI, Digital Sovereignty, And Geopolitics: India’s Strategic Positioning Between The U.S. And China  – IMPRI Impact And Policy Research Institute

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AI, Digital Sovereignty, and Geopolitics: India’s Strategic Positioning Between the U.S. and China 

Shuborno Chakroborty

Introduction 

The United States (U.S) and China are frequently cited as the key players in the global competition for dominance in Artificial Intelligence (AI). In spite of this, India is slowly constructing a new path that merges innovation with digital independence and ethical principles. India, the world’s most populous democracy and an enticing tech power, has more at stake in its AI initiative than its domestic ambitions, reflecting a developing geopolitical character. This article draws from both domestic and international policy documents and global analyses and explains how India is strategically positioning itself strategically between the two AI superpowers of the U.S. and China. 

India’s AI Strategy 

The use of artificial intelligence has become a fundamental aspect of global power politics. U.S. model is loosely based on private-sector innovation and heavily focused on tightly regulated AI frameworks, unlike China’s infrastructure-driven, state-led approach. Although India is often regarded as a tech follower in the market, it is now making headway with policies such as: 

  • IndiaAI Mission (2024): a nationwide initiative that seeks to advance AI research, skill development, and deployment. 
  • Digital Personal Data Protection Act (2023): representing India’s first data privacy legislation. 
  • IndiaAI safety Institute (Proposed): For Ethical AI safety frameworks and development. 

Despite these achievements, India’s approach is seldom examined in depth with the same level of attention as the U.S. and China. However, it is evident how India seeks to establish normative influence in addition to technological leadership.

Comparison of AI strategies: India, the U.S, and China 

AI is not just a technological tool anymore, it has become a geopolitical asset. By comparing the AI strategies, it can be seen how the countries position themselves in this new global order. In this article, key insights have been uncovered through a comparative analysis of national AI policies of India, the U.S. and China across four policy dimensions, including strategic vision, ethics, data governance, and global engagement.

Our emphasis on strategic vision, ethics, data governance, and global engagement stems from the fact that these four dimensions are the core pillars of national AI strategies. They not only determine the manner in which a country develops AI, but also why it does so, for whom, and what the impact will be on the rest of the world. 

Strategic Vision

  • U.S.: Focus is on enhancing competitiveness, advancing defense applications, and maintaining global leadership in AI through innovative R&D initiatives and market incentives.
  • China: It aims to be the world leader in AI by 2030 with state investment, central planning and integration of AI in smart cities/surveillance and military tech. 
  • India: Inclusion, affordability and public AI infrastructure are highlighted as reflection of India’s democratic and development-oriented goals. 

Ethics and Responsible AI

  • U.S.: NIST (National Institute of Standards and Technology) and other institutions in the U.S. promote voluntary ethical AI frameworks. 
  • China: The implementation of state-mandated ethical standards in China is accompanied by political and surveillance objectives. 
  • India: India prioritizes ethical and inclusive AI over other non-binding principles. Even so, enforcement mechanisms are either ineffective or developing. 

Data Governance and Digital Sovereignty

  • U.S.: It encourages open data flows and corporate self-determination, rather than relying on national control. 
  • China: The Chinese government embraces data nationalism, which involves using state control over data as a valuable strategic asset. 
  • India: Strikes a balance between data localization, privacy protection, and self-rule over digital infrastructure through the DPDP Act and public digital platform regulations in India.

Global Engagement and AI Diplomacy

  • U.S.: The U.S. is instrumental in establishing global AI standards through multilateral alliances like the Global Partnership on AI (GPAI). 
  • China: Through the International Telecommunication Union (ITU) and Belt And Road initiatives, China enhances its standards. 
  • India: By joining GPAI and advocating for responsible AI at G20 and Quad, India is positioning itself as a voice of the Global South and maintaining its strategic independence. 

The Hybrid AI Model for India: Strengths and Challenges 

India’s strategy for AI employs a hybrid approach. It merges state-driven infrastructure (such as Aadhaar) with private-sector innovation, while maintaining the pursuit of ethical and inclusive development objectives. India’s approach is based on the concept of accessible, equitable, and independent, which aligns with its digital public goods philosophy. 

Strengths: Education, health, agriculture, and language inclusivity are key factors that contribute to the digital empowerment portrayed in India’s Democratic Digital Infrastructure. By positioning itself as a champion of AI, India can align with global discourse on responsible and human-centric AI. India can maintain flexibility in its dealings with both the U.S. and China by staying out of the alignment with either bloc. 

Challenges: India does not have a single regulatory body for artificial artificial intelligence (like the proposed AI Safety Institute). The existence of non-concrete ethical frameworks is acknowledged, but their enforcement is still arbitrary. India’s ability to set international AI standards is not as strong as its dominant position suggests, despite its normative stance. 

Roadmap for India’s involvement in the AI Geopolitics 

As AI becomes more competitive, India must prioritize policy intent and global leadership over implementation. The next steps could include: 

  • Giving the proposed AI Safety Institute enforceable powers. 
  • Enhancing research and innovation ecosystems through public-private partnerships.
  • Increasing global AI diplomacy, especially among Global South nations striving for ethical, inclusive, and sovereign digital growth.

Conclusion

The AI strategy of India does not seem to be only reactive in nature; rather, it fits a specific narrative of geopolitical storytelling. Sitting at the intersection of American techno-liberalism and Chinese techno-authoritarianism, India is strategically pitching ethical innovation and digital sovereignty for the Global South. With that said, whether this vision will become powerful in shaping global AI governance still remains a mystery. One assumption we can make is that it is very clear India is starting to exclude itself from the passive observer category, and is starting to establish itself as a crucial builder in the AI world order. 

References

About the author: Shuborno Chakroborty is a fellow at DFPGYF Diplomacy, Foreign Policy & Geopolitics Youth Fellow at IMPRI. He is a social entrepreneur, science communicator, author, and researcher. He is the co-founder and director of Inscope Social Foundation, a Section 8 company based in Delhi-NCR, working on social innovation, science, and policy communication. He is also working as a freelance author and product trainer for Pearson Education, India.

Acknowledgements: The author extends sincere gratitude to Impact and Policy Research Institute India team for reviewing the article and for providing the opportunity to write the article.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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