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      India has built public AI capacity at speed. Sovereign by design argues that the question for the next four years is whether the country can control, scale, and trust what it has created. The report defines sovereign AI as the ability to develop, deploy, and govern AI on India’s own terms, with appropriate control over critical data, models, compute and rules.

      This does not require India to build every component independently. It requires sufficient control to protect continuity, public value and national priorities while benefiting from global technology and innovation.

      Five imperatives translate this framework into action. India must make AI growth inclusive through multilingual, voice-first and last-mile design; build trusted data and AI governance throughout the AI lifecycle; move from proofs of concept to AI embedded in budgets, processes, people and policy; strengthen the innovation ecosystem through accessible compute and data, patient capital, repeat public demand and intellectual property protection; and define a measurable sovereign AI future for 2030. The report envisages AI-enabled public services operating at population scale across all scheduled languages, supported by sovereign-controlled models for priority services, independent assurance and a globally competitive Indian AI industry. Reaching this position requires government to define sovereignty by layer, develop governed data exchanges, reform procurement and fund ongoing operations. Industry must architect for data residency, portability and multi-model flexibility, while startups and academia build shared benchmarks, deployable research and partnerships for scale.

      Sovereignty, in this formulation, becomes a set of deliberate and measurable choices about who controls the data, models, infrastructure and ability to switch.


      Key highlights of the report

      • Sovereignty must be designed into AI systems from the outset

        The report highlights that sovereignty is a strategic design choice that should be embedded across data, models, compute, procurement, governance and talent, rather than treated as a post-deployment consideration

      • Extending India's digital public infrastructure model to AI

        Building on the experience of Aadhaar, UPI, DigiLocker and Bhashini, the role of how public digital infrastructure and open innovation can together create the foundations for AI sovereignty

      • Building the sovereign AI stack

        Six foundational layers of AI sovereignty: compute, data, models, platforms and DPI, talent and IP, and governance and trust, each requiring a distinct approach to capability development and control

      • Moving from proof-of-concept to institution

        Transitioning from isolated pilots towards AI systems embedded in budgets, processes, people and policy, enabling durable and scalable impact

      • Building trusted data and AI governance

        Data governance, model evaluation, transparency, accountability, human oversight and responsible AI are identified as essential enablers of trust and large-scale adoption

      • Making AI growth inclusive by design

        The importance of multilingual, voice-first and last-mile AI solutions that can serve citizens across India's languages, geographies and socio-economic segments

      • Strengthening India's AI innovation ecosystem

        Affordable compute, access to high-quality datasets, public procurement, patient capital, talent development and indigenous intellectual property are identified as critical enablers of AI capability and competitiveness

      • Defining and measuring India's sovereign AI future

        A structured approach to defining sovereignty across different layers of the AI stack and tracking progress through measurable indicators and shared national milestones


      Sovereign by design - Building India’s independent, inclusive and future-ready AI

      A blueprint for building an independent, inclusive and future-ready AI India through sovereign infrastructure and trusted AI ecosystems


      Key Contacts

      Nilachal Mishra

      Partner and Head, Government & Public Services (G&PS), National Leader - Government and Infrastructure

      KPMG in India

      Akhilesh Tuteja

      Partner & National Leader - Clients and Markets and Technology, Media & Telecommunications (TMT)

      KPMG in India

      Purushothaman KG

      National AI Leader, and Head – Technology Transformation

      KPMG in India

      Brijendra Kumar

      Partner and Lead, GovTech, Government and Public Services

      KPMG in India

      Udit Sethi
      Udit Sethi

      Partner, Digital Solutions - Strategy and Insights

      KPMG in India

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