[Answered] Artificial Intelligence (AI) is rapidly transforming strategic affairs, presenting both opportunities and challenges. Analyze the impact of AI on defense capabilities, focusing on its implications for India’s national security. Further, discuss the economic considerations that India must address in developing and deploying AI for strategic purposes.

Introduction

Artificial Intelligence (AI) is redefining the nature of warfare and strategic competition. From autonomous systems to predictive threat analysis, AI is becoming a core element of military modernization. For India, leveraging AI is critical to enhancing national security and asserting strategic autonomy in an increasingly AI-driven global order.

Impact of AI on Defence and National Security

1. Force Multiplier in Modern Warfare: AI enhances combat efficiency through real-time data processing, autonomous surveillance drones, and intelligent decision-support systems, as seen in applications developed under India’s iDEX (Innovations for Defence Excellence) initiative.
2. Algorithmic Dominance: AI transforms intelligence gathering, cyber defence, and electronic warfare. It allows pre-emptive threat identification and rapid response, vital for India’s multi-front security environment.
3. Digital Sovereignty: Strategic AI adoption helps reduce dependence on foreign technologies, aligning with India’s national security goals. The establishment of the Defence AI Council (DAIC) and Defence AI Project Agency (DAIPA) reflects this ambition.
4. Non-Contact Warfare Capabilities: AI empowers India in cyber operations, electronic deception, and psychological warfare — key in asymmetric conflict scenarios, especially against technologically advanced adversaries like China.

Economic Considerations in AI Deployment

1. Infrastructure Investment: High-end AI development requires advanced semiconductor manufacturing, cloud computing infrastructure, and secure data centers — areas where India currently lags and depends on imports.
2. Cost of R&D and Talent: AI for defence demands sustained investment in research, upskilling of defence personnel, and nurturing dual-use technologies. The defence sector must compete with the private sector to attract top AI talent.
3. Public-Private Collaboration: India needs robust partnerships with startups and tech companies to bridge the innovation gap. Incentivizing indigenous defence startups through funding and procurement is essential.
4. Global Value Chains and Economic Security: India’s vulnerability to supply disruptions (e.g., chips from Taiwan or US cloud controls) poses risks to AI self-reliance. Strategic decoupling in critical tech is both a security and economic imperative.

Conclusion

AI offers transformative potential for India’s defence capabilities. However, realizing this potential requires addressing core economic challenges: infrastructure deficits, funding gaps, and industrial policy coherence. A strategic, sovereign, and economically sustainable AI ecosystem is essential for India’s future security architecture.