The Governance Imperative: Why 83% of Indian Executives Say AI Infrastructure Needs Strict Oversight

India’s artificial intelligence (AI) ecosystem is expanding at an unprecedented pace. From startups to global corporations, AI is being integrated into every sector, promising transformative growth and efficiency. Yet, as the technology advances, so do the concerns about its risks. Recent surveys and government reports reveal a striking consensus: a vast majority of Indian executives—83% according to the latest industry data—believe that AI infrastructure requires strict oversight and robust governance frameworks. This is not just a matter of compliance; it is a strategic imperative for sustainable innovation and public trust.

The Surge in AI Adoption and the Governance Gap

India’s AI journey has accelerated rapidly, with the government’s IndiaAI Mission allocating ₹10,371.92 crore over five years to build a world-class AI ecosystem[1]. The mission aims to make India a global leader in AI, focusing on infrastructure, innovation, and inclusive deployment. Over 80,000 GPUs have been deployed nationwide, making India the fastest-growing GPU infrastructure market in the Asia-Pacific region[8].

Despite this progress, a significant gap remains in governance. According to the KPMG 2025 India CEO Outlook, 76% of Indian CEOs cite the lack of clear rules and regulations as a major barrier to AI adoption[3]. This sentiment is echoed across sectors, with executives highlighting concerns about data privacy, ambiguous legislation, and the absence of standardized frameworks for ethical AI use.

Why Governance Matters: Risks and Realities

AI’s potential is immense, but so are its risks. Without proper oversight, AI systems can perpetuate biases, compromise data privacy, and even enable cybercrime. The KPMG report notes that 75% of Indian CEOs believe online insecurity could hinder their company’s growth over the next three years[3]. Cybersecurity and digital risk resilience have emerged as the top investment priorities for 42% of CEOs, underscoring the urgency of robust governance[4].

Executives are also grappling with data readiness. About 53% of CEOs report that their companies lack high-quality, well-organized data, which is essential for accurate AI systems[3]. Additionally, 46% highlight a shortage of skilled professionals, such as data scientists and AI engineers, further complicating the adoption process[3]. These challenges highlight the need for governance frameworks that not only regulate AI but also support its responsible and effective deployment.

The IndiaAI Mission: Building a Robust Ecosystem

The Indian government has taken significant steps to address these concerns. The IndiaAI Mission is structured around several pillars, including high-end GPU infrastructure, application development for sector-specific challenges, and startup financing[1]. The mission also emphasizes safe and trusted AI, with initiatives like the IndiaAI Application Development Initiative focusing on healthcare, agriculture, climate change, governance, and assistive learning technologies[1].

One of the mission’s key achievements is the deployment of over 38,000 GPUs at subsidized rates, making advanced computing resources accessible to a broader range of organizations[1]. This infrastructure is critical for developing and scaling AI solutions, but it also necessitates strict oversight to ensure these resources are used ethically and securely.

The IndiaAI Governance Guidelines: A Forward-Looking Framework

In response to the governance gap, the Indian government has introduced the IndiaAI Governance Guidelines 2025. These guidelines represent a comprehensive, techno-legal approach to AI governance, aiming to coordinate oversight across ministries, regulators, and technical agencies[2]. The guidelines propose a layered institutional design, including the AI Governance Group, the Technology & Policy Expert Committee, and the AI Safety Institute[2].

The guidelines emphasize the need for measurable, auditable, and adaptable governance infrastructure. By embedding coordination and accountability within a shared operating logic, these institutions aim to create a cohesive, data-driven, and certifiable governance ecosystem[2]. This approach not only addresses domestic priorities but also sets a precedent for the Global South, offering a template for Governance Digital Public Infrastructure that balances innovation, accountability, and sovereignty[2].

Real-World Applications and Sector-Specific Initiatives

The impact of these governance frameworks is already being felt in various sectors. For example, the IndiaAI Application Development Initiative has approved 30 AI applications by July 2025, targeting challenges in healthcare, agriculture, climate change, governance, and assistive learning technologies[1]. Sector-specific hackathons, such as the CyberGuard AI Hackathon, are fostering innovation while ensuring that solutions are developed with security and ethical considerations in mind[1].

Centres of Excellence for AI have been established in key sectors like healthcare, agriculture, and sustainable cities, with a fourth center for education announced in the 2025 budget[1]. These centers serve as collaborative spaces where academia, industry, and government institutions come together to develop scalable AI solutions. Additionally, five National Centres of Excellence for Skilling have been set up to prepare the youth with industry-relevant AI skills, building a future-ready workforce[1].

The Role of Startups and Global Collaboration

Startups are at the forefront of India’s AI revolution, and the government is actively supporting their growth. The IndiaAI Startups Global program, launched in March 2025, helps 10 Indian startups expand into the European market in collaboration with Station F and HEC Paris[1]. This initiative not only boosts innovation but also ensures that Indian startups adhere to international standards of governance and ethical AI use.

Companies like Sarvam AI are translating advanced AI research into practical governance solutions. In partnership with the Unique Identification Authority of India (UIDAI), Sarvam AI is using generative AI to make Aadhaar services smarter and more secure. In April 2025, Sarvam AI received approval to build India’s Sovereign LLM Ecosystem, an open-source model designed to enhance public service delivery and promote digital trust[1].

The Road Ahead: Challenges and Opportunities

While India has made significant strides in AI governance, challenges remain. The rapid pace of technological change requires continuous updates to governance frameworks. Executives must balance the need for innovation with the imperative of trust and accountability. The proposed implementation roadmap for the IndiaAI Mission includes phases of mission orientation, institutional setup, pilot projects, and nationwide rollout, ensuring that solutions are tested and scaled with robust oversight[1].

By 2035, the mission envisions India as a global leader in inclusive AI deployment, with technology driving growth and strengthening livelihoods. However, this vision can only be realized with strict governance and a commitment to ethical AI practices. The government’s efforts to create a robust AI ecosystem, promote innovation, and ensure that technology serves every section of society are laying a strong foundation for India’s journey towards an equitable and empowered digital economy[1].

Conclusion

The governance imperative for AI infrastructure in India is clear. With 83% of executives demanding strict oversight, the need for robust, forward-looking frameworks is undeniable. The IndiaAI Mission and the IndiaAI Governance Guidelines are significant steps towards creating a trustworthy and inclusive AI ecosystem. As India continues to innovate and expand its AI capabilities, the focus must remain on governance, ensuring that technology not only drives growth but also fosters trust, accountability, and equity.