As the government prepares for India AI Impact Summit 2026, the Economic Survey 2025–26, tabled in Parliament on Thursday, presents artificial intelligence (AI) as a practical economic tool rather than a race for technological prestige.
The Survey explains how AI is reshaping the global economy and lays out a realistic and development-focused strategy for India in a time of fast technological change and global uncertainty.
“AI adoption in India should be rooted in economic needs and social responsibility,” it said.
“Instead of relying on large, centralised systems, it supports a bottom-up approach where different sectors develop AI solutions suited to their specific problems,” as per the survey tabled by Union Minister of Finance and Corporate Affairs Nirmala Sitharaman.
The Survey highlights the importance of open and interoperable systems that encourage collaboration and shared innovation.
“This approach aligns well with India’s strengths, including its large pool of skilled workers, diverse data, and strong institutional networks,” it said.
The Survey notes that India’s growing demand for AI is driven by real-world challenges rather than experimental or luxury technologies.
It points to practical uses of AI in healthcare, agriculture, education, urban planning, disaster management, and public services.
Examples include early disease detection, better water management, improved access to markets for farmers, classroom performance analysis, and AI tools in regional languages.
“These solutions are designed to work on low-cost hardware and in limited-resource settings, making them affordable and scalable,” according to the Survey.
“Such application-focused AI can lower costs and help overcome long-standing structural issues,” it added.
Keeping in mind India’s realities such as limited capital, energy constraints, and varying institutional capacity, the Survey emphasises that AI choices must support long-term growth and avoid creating new dependencies.
It also recognises that global AI development is uneven, with some countries having greater access to computing power, finance, data, and influence over global standards.
Rather than seeing this as a disadvantage, the Survey uses it to shape a more realistic policy direction for India.
