India strengthens AI - Google AI Hub, AI-driven payments, Sovereign AI model, Safe and trusted AI and more
The AI4India Weekly #74
Under PM Narendra Modi’s vision of a Viksit Bharat, India is making major strides in building a robust AI ecosystem. Google has launched its $15 billion AI hub in Visakhapatnam, Andhra Pradesh, creating gigawatt-scale data centres and expanding India’s AI and cloud infrastructure.
This week, we also cover AI-enabled payments, as NPCI and Razorpay pilot transactions through ChatGPT using UPI’s “reserve pay” feature. Meanwhile, the Ministry of Education announced AI will be introduced in schools from Class 3 in the 2026–27 academic year, preparing students and teachers for a digital-first economy.
India’s sovereign AI model is expected by February 2026, and five projects under the Safe & Trusted AI pillar are tackling deepfake detection, gender bias, and generative AI security, reflecting IndiaAI’s commitment to secure and ethical AI development.
From infrastructure to education, innovation, and workforce development, this week’s AI4India coverage shows how India is shaping the future of artificial intelligence.
Building a Viksit Bharat: PM Modi Welcomes Launch of Google AI Hub in Andhra Pradesh
Guided by Prime Minister Narendra Modi’s vision of a Viksit Bharat, Google has officially launched its new AI Hub in Visakhapatnam, Andhra Pradesh, marking a major milestone in India’s digital growth. The project, part of a $15 billion investment over five years, includes gigawatt-scale data centre infrastructure and a new international subsea gateway, making it Google’s largest AI hub outside the U.S. Developed in partnership with Adani Group and Airtel, the hub aims to strengthen India’s AI and cloud ecosystem while generating significant employment and boosting local infrastructure.
Aligned with the government’s “AI for All” vision, the hub is designed to make advanced AI tools more accessible to citizens and businesses. PM Modi emphasized that the initiative will democratize technology, accelerate innovation, and position India as a global leader in artificial intelligence and digital infrastructure.
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India Rolls Out Pilot for E-commerce Payments via ChatGPT
NPCI and Razorpay have partnered with OpenAI to pilot AI-driven payments via ChatGPT using India’s Unified Payments Interface (UPI). The initiative will let users make purchases directly within ChatGPT using UPI’s new “reserve pay” feature.
Banking partners include Axis Bank and Airtel Payments Bank, with Bigbasket as one of the first platforms onboard. The pilot aims to test how agentic AI can enable secure, autonomous payments, marking India’s entry into AI-enabled financial transactions.
Operation Sindoor: How AI Supported India’s Strategic Response
Indian officials say AI was used extensively in Operation Sindoor (May 2025) for real‑time multi‑sensor fusion, target identification, prioritization and decision support, using systems like Trinetra/Sanjay, the ECAS electronic‑intelligence tool, Edge AI on platforms, AI drones, and apps such as Anuman 2.0 (short‑range weather forecasting). The army reported that around 23 AI applications were employed, achieving high accuracy in identifying targets and electronic emitters.
Ministry of Education Introduces AI Learning from Class 3
The Ministry of Education has announced that Artificial Intelligence (AI) will be introduced into school curricula from Class 3 onwards, starting in the 2026–27 academic year. The move aims to equip both students and teachers with the skills needed for a digital-first economy. The Central Board of Secondary Education (CBSE) is currently developing a framework to integrate AI learning across various grade levels.
India’s Sovereign AI model Will be Ready by February: IT Ministry secretary
The Government of India has announced that the country’s sovereign AI model will be ready before the AI Impact Summit in February 2026. The model, being developed under the Ministry of Electronics and Information Technology (MeitY), aims to create a secure and indigenous AI ecosystem tailored to India’s needs.
The Algorithmic–Human Manager: CeRAI’s Study Reveals the Double-Edged Impact of AI on India’s Gig Economy
The Centre for Responsible AI (CeRAI) at IIT Madras examined the impact of AI and digital technologies on India’s blue-collar gig economy. The report highlights a dual reality: while technology expands access to work and efficiency, it also raises concerns about fairness, transparency, and worker welfare. Using interviews with 16 gig workers and 21 stakeholders, the study shows that algorithmic management shapes worker experiences in services like ride-sharing, delivery, and home services, often creating the impression that humans, rather than algorithms, are making key decisions.
India Unveils Five Cutting-Edge Projects to Strengthen Safe And Trusted AI Ecosystem
The Ministry of Electronics and Information Technology (MeitY) has selected five projects under the Safe & Trusted AI pillar of the IndiaAI Mission to tackle issues like deepfake detection, gender bias, and generative AI security.
Chosen from over 400 proposals, the projects involve top academic institutions, startups, and research organizations. Key initiatives include deepfake detection frameworks, voice forgery detection, gender-bias evaluation in AI, and generative AI testing tools. These efforts aim to ensure AI systems in India are secure, reliable, inclusive, and ethically aligned, reflecting IndiaAI’s commitment to responsible AI development.
Axis: India’s AI Model Outperforms AlphaGenome in Gene Therapy Research
Axis is a new AI model that generates regulatory DNA elements and predicts their function, aiming to improve gene therapies by reducing risks like poor efficacy, toxicity, and low specificity. It outperforms Google DeepMind’s AlphaGenome, predicting regulatory element binding activity 6.7% more accurately.
Opinions and Thoughts
Why AI is Being Trained in Rural India
Small towns in India, like Virudhunagar, are becoming new hubs for AI-related work through a trend called cloud farming, where jobs are brought to rural areas instead of making people migrate to big cities. Companies like Desicrew and NextWealth employ locals—many women and first-generation graduates—to annotate data, transcribe audio, and train AI models for global clients.
This work underpins AI systems such as ChatGPT and facial recognition. Experts see small-town India as poised to become a major global hub for AI operations, though challenges remain in internet reliability, data security, and client trust.
Read the full story by Priti Gupta
#DataDaan - Donate for a Digital India
Aligned with the IndiaAI Mission and MeitY’s efforts to ensure the availability of AI-usable data, the #DataDaan campaign by AI4India is now live on DataDaan.org. This initiative invites individuals and organizations to contribute valuable datasets, enriching India’s AI ecosystem and driving innovation across sectors. The platform provides a streamlined process for data contribution, ensuring responsible and impactful AI development. Visit DataDaan.org to explore the initiative and be part of this transformative effort.
NOTE: The views expressed by the authors are their own. AI4India as a forum does not endorse any comments on specific brands, products, platforms or companies.
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