National AI Strategy and Sovereign AI Infrastructure
Science & Technology
- PYQs8
- Articles1
Background
India's future economic competitiveness, national security, and technological leadership depend on a robust AI strategy and the development of sovereign AI capabilities, reducing reliance on foreign entities and fostering indigenous innovation.
A National AI Strategy outlines a country's vision, goals, and policy framework for developing and deploying Artificial Intelligence. Central to this is the concept of sovereign AI infrastructure, which involves building and controlling domestic capabilities for AI model hosting, training, and hardware to ensure strategic autonomy, data security, and reduce reliance on foreign entities.
Facts & tables
- Low R&D Spending
- India spends only 0.65% of its GDP on R&D, significantly lower than global leaders (e.g., China 2.4%, US 3.5%).
- Sovereign Infrastructure Goal
- Build competence to host and operate large language models (LLMs) on Indian soil, treating AI infrastructure as a strategic national capability.
- Hardware Diversification
- Adopt a 40:30:30 hardware mix (AWS Trainium/AMD, Google TPUs, NVIDIA) to avoid single-vendor lock-in and reduce costs.
- National AI Token Policy
- Announce and implement a policy over 24 months, starting with public-private partnerships and pilot programs for research institutions and schools.
| Type | Reference |
|---|---|
| Conceptual area | Emerging Information Technologies |
| Conceptual area | Fiscal Policy & Public Debt |
| Conceptual area | Geopolitics & International Conflicts |
| Conceptual area | Public Finance & Taxation |
| Body | Role |
|---|---|
| Niti Aayog | Formulates policy recommendations for ai and technological development |
| Ministry of Electronics and Information Technology (MeitY) | Implements national ai initiatives and policies |
| Department of Science & Technology (DST) | Funds and promotes scientific research and development |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Factual recall
- National AI Token Policy proposed to boost R&D.
- Focus on building sovereign AI infrastructure (host LLMs domestically).
- Advocates hardware diversification (e.g., 40:30:30 mix) to avoid vendor lock-in.
- Calls for public-private partnerships with hyperscalers.
- Aims for technological autonomy and global AI leadership.
Ministry sets policy; regulator often has quasi-judicial powers.
| Year | Framing tags |
|---|---|
| 2026 | Statement-based questions, Factual recall |
| 2026 | Multi-statement analysis, Conceptual understanding |
| 2026 | Statement-based questions, Conceptual understanding |
| 2026 | Multi-statement analysis, Factual recall |
| 2026 | Multi-statement analysis, Factual recall |
| 2026 | Multi-statement analysis, Conceptual understanding |
| 2026 | Multi-statement analysis, Factual recall |
| 2018 | Multi-statement analysis, Policy measures |
Timeline
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Emerging Information Technologies
Conceptual area
-
Fiscal Policy & Public Debt
Conceptual area
-
Geopolitics & International Conflicts
Conceptual area
-
Public Finance & Taxation
Conceptual area
-
Prelims 2018
Multi-statement analysis, Policy measures
-
Prelims 2026
Statement-based questions, Factual recall
-
Prelims 2026
Multi-statement analysis, Conceptual understanding
-
Prelims 2026
Statement-based questions, Conceptual understanding
-
Prelims 2026
Multi-statement analysis, Factual recall
-
Prelims 2026
Multi-statement analysis, Factual recall
-
Prelims 2026
Multi-statement analysis, Conceptual understanding
-
Prelims 2026
Multi-statement analysis, Factual recall
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Reforms 3.0 — towards the Bharat rate of growth
India needs a comprehensive National AI Token Policy to boost R&D, make AI accessible, and build sovereign AI infrastructure. This involves strategic funding, hardware diversification, and public-private partnerships to ensure technological autonomy, data security, and foster a thriving AI ecosystem.
See also
Past papers
2018–2026 · 8 questions
In the news
Reforms 3.0 — towards the Bharat rate of growth
India needs a comprehensive National AI Token Policy to boost R&D, make AI accessible, and build sovereign AI infrastructure. This involves strategic funding, hardware diversification, and public-private partnerships to ensure technological autonomy, data security, and foster a thriving AI ecosystem.
Try these PYQs
Consider the following statements with respect to the AI Impact Summit, 2026 held in New Delhi :
1. The Summit's intellectual framework was based on three foundational Sutras : People, Planning, and Progress.
2. The Preamble of the Summit stresses Democratising AI Resources, which acknowledges the Charter for Democratic Diffusion of AI as a binding framework to support locally relevant innovation and strengthen resilient AI ecosystems while respecting national laws.
3. The New Delhi Declaration on AI Impact was structured around seven Chakras (Pillars), which included Access for Social Empowerment, AI for Science, and Secure and Trusted AI.
Which of the statements given above is/are correct ?
Statement 1 is Incorrect: The Summit's intellectual framework and core philosophy were anchored in three foundational principles (Sutras): People, Planet, and Progress, not People, Planning, and Progress. Statement 2 is Incorrect: The New Delhi Declaration introduced the Charter for Democratic Diffusion of AI to promote affordable access to foundational AI resources, support local innovation, and build resilient AI ecosystems. However, it was established as a voluntary and non-binding framework, respecting national laws, rather than a binding treaty. Statement 3 is Correct: The New Delhi Declaration on AI Impact was structured around seven thematic pillars of action, officially referred to as Chakras. These foundational areas included Access for Social Empowerment, AI for Science, and Secure and Trusted AI, alongside Democratizing AI Resources, Economic Growth & Social Good, Human Capital Development, and Resilient, Efficient & Innovative AI Systems. Therefore, option D is the correct answer.
Consider the following statements with reference to the Sagarmala Programme of the Government of India :
I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
Which of the following relationships among the above statements is/are correct ?
1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
Select the answer using the code given below :
Relationship 1 is Correct: Statement I outlines the core objective of the Sagarmala Programme, launched in 2015, which is port-led economic development through cost-effective and sustainable coastal infrastructure. Statement II provides empirical evidence of its success, such as the 118% growth in coastal shipping, a 700% surge in inland waterway cargo movement, and improved global port rankings (with nine Indian ports now in the global top 100). Thus, the tangible achievements in Statement II directly validate the effectiveness of the foundational strategies mentioned in Statement I. Relationship 2 is Correct: Statement III highlights the goals of Sagarmala 2.0, which focuses on smart ports, green shipping, and positioning India as a global maritime innovation hub aligned with the Viksit Bharat 2047 and Atmanirbhar Bharat visions. This acts as an evolutionary extension of the foundational infrastructure goals in Statement I, embedding them into a broader, future-oriented innovation framework rather than replacing them. Relationship 3 is Incorrect: Statement I does not contradict Statement III. The initial focus on traditional and sustainable coastal infrastructure in the original Sagarmala Programme serves as the necessary physical base upon which the modern innovation and technology-driven goals of Sagarmala 2.0 are built. The two phases are complementary and represent a progressive policy evolution, not a contradiction. Therefore, relationships 1 and 2 are correct, making Option B the correct choice.
Which of the following statements with regard to Large Language Models (LLMs) used in machine learning is/are correct ?
1. LLMs assign probabilities to the next possible words and then pick the one with the highest probability.
2. LLMs process data through mathematical optimization to minimise prediction errors.
3. LLMs produce unbiased outputs.
Select the answer using the code given below :
Statement 1 is Correct: At their core, Large Language Models (LLMs) function by analyzing input context and calculating a statistical probability distribution for the next possible words (tokens) in a sequence. In their most basic form of text generation (known as "greedy decoding"), they pick the word with the absolute highest probability. While standard applications often introduce controlled randomness (stochastic sampling like *top-k* or *temperature scaling*) to make text more creative, the foundational mechanism relies on assigning probabilities to select the next word. Statement 2 is Correct: LLM training relies heavily on mathematical optimization. Algorithms such as Stochastic Gradient Descent and backpropagation are used to iteratively adjust billions of model parameters. The explicit goal of this process is to minimize a "loss function," which mathematically represents the model's prediction errors compared to the actual training data. Statement 3 is Incorrect: LLMs do not produce inherently unbiased outputs. Because they learn from massive, human-generated datasets scraped from the internet, they are well-documented to inherit, reflect, and sometimes amplify historical and societal biases (e.g., gender, racial, or cultural stereotypes) present in their training data. Therefore, the correct option is B.
Which of the following statements with regard to the National Quantum Mission (NQM) is/are correct?
1. It aims at developing intermediate-scale quantum computers with 50-1000 physical qubits.
2. Its implementation includes setting up of four Thematic Hubs (T-Hubs) in academic and national R&D institutes across India.
Select the answer using the code given below:
Statement 1 is Correct: The National Quantum Mission (NQM) aims to develop intermediate-scale quantum computers with 50 to 1000 physical qubits within 8 years. Specifically, it targets 50–100 physical qubits in 5 years and scales up to 50–1000 physical qubits in 8 years using platforms like superconducting and photonic technology. Statement 2 is Correct: The implementation of the mission explicitly includes the establishment of four Thematic Hubs (T-Hubs) in top academic and national R&D institutes across India. These hubs focus on distinct technology verticals: Quantum Computing (led by IISc Bengaluru), Quantum Communication (led by IIT Madras), Quantum Sensing & Metrology (led by IIT Bombay), and Quantum Materials & Devices (led by IIT Delhi). Therefore, both statements are correct.
Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India?
1. Formation of India's own Internet companies like China did.
2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
3. Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourist centres
Select the correct answer using the code given below
* Statement 1 is not correct: The formation of India’s own internet companies, similar to China’s approach, is not an aim of the Digital India programme. The initiative focuses on creating digital infrastructure, providing digital services, and promoting digital literacy — not establishing government-backed internet firms. * Statement 2 is not correct: The Digital India plan does not include any policy framework to attract foreign multinational corporations to build data centres in India. While data localisation and data centre policies have emerged later under different frameworks, they are not part of the original Digital India objectives. * Statement 3 is correct: One of the key aims of Digital India is to connect villages through broadband and to provide Wi-Fi access in schools, public places, and tourist centres. This is part of its core pillars like Broadband Highways, Public Internet Access Programme, and Early Harvest Programmes.
Show 3 more PYQs
Which of the following statements about Real-World Assets (RWA) Tokenization are correct?
1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.
Select the answer using the code given below:
Statement 1 is Correct: Real-World Asset (RWA) Tokenization is the process of converting the ownership rights of physical or traditional financial assets (such as real estate, gold, commodities, or bonds) into digital tokens on a distributed ledger or blockchain. Each token represents a proportional share or claim on the underlying asset. Statement 2 is Correct: Unlike traditional financial markets and real estate registries that have fixed operating hours, geographic limitations, and settlement delays, blockchain-based tokenized assets can be traded globally, 24 hours a day, 7 days a week, with near-instant settlement. Additionally, tokenization allows high-value, traditionally illiquid assets to be divided into smaller, affordable fractions. This lowers the barrier to entry, enabling retail investors and underserved populations to participate in wealth-building markets, thereby directly promoting financial inclusion. Statement 3 is Correct: In the Indian context, RWA tokenization democratizes access to high-growth, capital-intensive sectors (like commercial real estate, agricultural land, and infrastructure projects). Regulatory bodies like the IFSCA (in GIFT City) have already begun approving tokenization platforms under regulatory sandboxes to unlock these previously inaccessible investment opportunities for everyday Indian retail investors. Therefore, all three statements are correct, making the correct option A.
Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct ?
1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs).
2. China has the highest share in mining of REEs followed by India.
3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector.
4. Rare Earth Elements are a set of 13 metallic elements.
Select the answer using the code given below :
Statement 1 is Correct: Rare Earth Elements (REEs) are indispensable for modern technological innovations. Their unique magnetic, luminescent, and electrochemical properties make them critical for artificial intelligence hardware, robotics, space exploration, electric vehicles, and advanced defense systems. Statement 2 is Incorrect: While China dominates global REE mining, accounting for roughly 69% of global production, the second-largest producer is the United States, followed by Myanmar and Australia. India ranks much lower globally and is not the second-largest producer. Statement 3 is Correct: The Government of India officially launched the National Critical Mineral Mission (NCMM) in January 2025. The mission is a strategic blueprint designed to secure domestic and global supply chains, reduce import dependence, and establish a robust framework for self-reliance in critical minerals essential for clean energy and technology. Statement 4 is Incorrect: Rare Earth Elements are a set of 17 metallic elements, not 13. This group comprises the 15 lanthanides on the periodic table, along with scandium and yttrium, which share similar chemical properties and are typically found in the same ore deposits. Therefore, the correct option is A.
Which one of the following pairs of semiconductor plants in India and their locations is **not** correctly matched?
| Semiconductor Plant | Location |
|---|---|
| (a) CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics | Gujarat |
| (b) Tata Semiconductor Assembly and Test Pvt. Ltd. | Assam |
| (c) HCL-Foxconn Joint Venture India Chip Ltd. | Madhya Pradesh |
| (d) SicSem Pvt. Ltd. | Odisha |
Option A is correctly matched: The Union Cabinet approved the Outsourced Semiconductor Assembly and Test (OSAT) facility by CG Power and Industrial Solutions (in partnership with Renesas Electronics and STARS Microelectronics) to be set up in Sanand, Gujarat. Option B is correctly matched: Tata Semiconductor Assembly and Test Pvt. Ltd. (TSAT) is establishing a greenfield semiconductor assembly and test facility in Jagiroad, Assam. It marks a major industrial investment in Northeast India. Option C is incorrectly matched: The OSAT facility by the HCL-Foxconn Joint Venture (India Chip Pvt. Ltd.) is being established in Jewar, Uttar Pradesh (in the Yamuna Expressway Industrial Development Authority region), not Madhya Pradesh. It will manufacture display driver chips. Option D is correctly matched: SicSem Pvt. Ltd. is setting up a Silicon Carbide (SiC) semiconductor manufacturing plant in Bhubaneswar, Odisha. It is designed to be India's first commercial compound semiconductor fab. Therefore, Option C is the correct answer.