The Role of AI in India’s Digital Public Goods Initiative

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• November 16, 2025
• Government, Tech & Innovation
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Government Focuses on Leveraging AI for Inclusive Growth and Digital Public Services

Key Highlights

• The Indian government integrates AI technologies into its Digital Public Goods (DPG) initiative to enhance public services, accessibility, and governance.
• AI is used in areas such as healthcare, education, financial inclusion, and urban planning under the Digital India program.
• Collaboration with global tech companies and academic institutions to build scalable AI solutions that benefit the masses.
• ₹1,500 crore investment in AI for Digital Public Goods over the next five years.

Official Government AI Initiatives for Digital Public Goods

India has been actively working to integrate AI technology into its Digital Public Goods (DPG) framework, a series of open-source digital resources and tools aimed at improving governance, public service delivery, and social welfare. AI’s role is becoming increasingly pivotal as part of the government’s broader push to build a digital-first India.

The Indian government’s Digital Public Goods initiative focuses on creating scalable, accessible, and interoperable platforms and services that can be leveraged by citizens, businesses, and government agencies alike. By embedding artificial intelligence into this initiative, India aims to enhance the reach and efficiency of public services, ensuring they are inclusive, data-driven, and accessible to all, particularly in underserved regions.

AI in Healthcare and Digital Public Goods

The National Health Authority (NHA) has integrated AI into its Digital Health Mission, particularly in the Ayushman Bharat initiative, which aims to provide affordable healthcare to millions of Indians:

• AI-based Telemedicine: Under the eSanjeevani platform, the government uses AI to provide virtual healthcare services, connecting patients in remote areas with medical professionals.
• AI for Diagnostics: AI-powered diagnostic tools are used to analyze health data and predict disease outbreaks, allowing for faster response and management of public health issues.
• National Digital Health Mission (NDHM): AI tools in this mission aim to create a comprehensive digital health ecosystem, improving access to healthcare and ensuring personalized health services for citizens.

Official Source – National Health Authority

AI in Education and Learning

The Ministry of Education has been promoting AI-driven learning solutions as part of its efforts to improve education quality and accessibility:

• AI in Learning Platforms: AI technologies are being used in DIKSHA (Digital Infrastructure for Knowledge Sharing) to provide personalized learning experiences for students across the country. The government is leveraging AI to design curriculum delivery that adapts to students’ learning speeds and styles.
• National Repository of Open Educational Resources (NROER): AI tools help curate and recommend educational content from open repositories, enhancing access to quality learning materials for students and teachers alike.

Official Source – Ministry of Education

AI in Financial Inclusion

India’s push for financial inclusion is closely tied to its use of AI technologies. Initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfers (DBT) are leveraging AI to make financial services more accessible and efficient:

• AI in Financial Services: AI-driven solutions are used to analyze financial data, predict risks, and streamline disbursement processes for welfare benefits under schemes like PMJDY. This ensures quicker and more accurate transfers, particularly in rural areas.
• AI-Powered Credit Scoring: AI tools are being used to provide more accurate and personalized credit scores for individuals who have no formal credit history, helping to include them in India’s financial ecosystem.

Official Source – Ministry of Finance

AI in Urban Planning and Smart Cities

Under the Smart Cities Mission, AI is transforming how cities are planned and managed, optimizing everything from waste management to traffic control:

• AI for Traffic Management: AI-based systems in cities like Bhubaneswar, Indore, and Ahmedabad are being used to monitor real-time traffic flow, optimize signal timings, and reduce congestion.
• AI for Waste Management: AI tools are also being used for smart waste management in various cities, improving the collection and recycling process. Cities are deploying AI sensors to monitor waste levels and optimize garbage collection routes, thereby reducing operational costs.

Official Source – Ministry of Housing and Urban Affairs

AI in Governance and Public Administration

AI is being increasingly integrated into public administration to improve service delivery and governance transparency:

• AI-Powered Chatbots: Government websites and services are now equipped with AI-powered chatbots to assist citizens in accessing information on public services, such as applying for licenses, tracking documents, and filing taxes.
• AI for Predictive Governance: AI models are being used to predict citizen needs and proactively address issues like urbanization, healthcare demands, and public safety.

Official Source – Government of India

Challenges and Solutions

While the integration of AI into India’s Digital Public Goods framework is promising, there are challenges to address:

1. Data Privacy and Security: As AI systems collect and process vast amounts of personal data, the government is focused on strengthening data protection mechanisms. The Personal Data Protection Bill, which is currently under review, will provide a regulatory framework to safeguard citizens’ privacy.
2. Infrastructure Gaps: Many regions, particularly rural and remote areas, still lack the digital infrastructure to fully benefit from AI-driven services. The government’s Digital India initiative aims to bridge this gap by expanding internet connectivity and digital literacy programs.
3. Skill Development: To ensure that citizens can effectively engage with AI-powered services, the government is investing in digital literacy and AI skills training, focusing on underserved populations.

Conclusion

The integration of AI into India’s Digital Public Goods initiative is a significant step toward creating an inclusive and data-driven society. By embedding AI into key sectors such as healthcare, education, financial inclusion, and urban planning, the government is working to ensure that public services are more efficient, accessible, and tailored to the needs of all citizens, particularly in rural and underserved areas.

With a clear focus on scalable solutions, collaborations with global tech firms, and an investment in AI skills development, India is poised to leverage AI as a tool for social welfare, economic growth, and governance. The government’s vision for AI-powered Digital Public Goods has the potential to transform public service delivery and ensure more equitable access to essential services for every citizen.