India’s Diplomatic Ascent in AI Governance Amid Global Multipolar Shifts

In the rapidly evolving landscape of geopolitics and technological innovation, India is consolidating its role as a key diplomatic architect for AI governance, amidst a broader shift toward a multipolar world order led by emerging economies and strategic alliances like BRICS. Recent developments demonstrate India’s strategic initiatives to shape inclusive, secure, and responsible AI frameworks, aligning regional ambitions with global norms, while navigating complex supply chains and geopolitical tensions.

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Strategic Positioning as a Diplomatic Hub for AI Governance

India’s proactive diplomatic engagement has positioned it as a central player in setting international standards for AI safety, ethics, and responsible deployment. The AI Impact Summit 2026, hosted in New Delhi, exemplifies this effort, bringing together global policymakers, industry leaders, and civil society to discuss shared norms that prioritize equity, safety, and societal benefits. India’s leadership emphasizes that AI development must be inclusive, especially for the Global South, and should mitigate monopolistic tendencies evident in Western and Chinese tech giants.

Complementing this summit, India has launched the Hexagon of Alliances, a multilateral framework that encourages responsibility, security, and regional cooperation in AI regulation. This initiative reflects India’s vision of responsible innovation, seeking to balance technological sovereignty with global collaboration.

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Key Initiatives Bolstering India’s AI and Digital Economy

National AI Center for Research and Innovation

Under the auspices of the Department of Science and Technology (DOST), India established the National AI Center, a hub dedicated to research, talent development, and standard-setting. This center aims to foster homegrown innovation that aligns with international norms, ensuring India remains competitive in AI breakthroughs and digital policy.

Trade Diplomacy and Regional Collaboration

India’s strategic diplomatic efforts include enhanced trade missions—notably Carney’s recent trips to India and other BRICS nations—focused on strengthening data-sharing agreements, digital infrastructure, and AI standards harmonization. These efforts aim to build resilient regional ecosystems that are less dependent on Western-controlled systems.

Financial and Digital Infrastructure: CBDC and Interoperability

India and BRICS partners are actively developing regional digital payment systems, including Central Bank Digital Currencies (CBDCs) with interoperability features. These initiatives aim to reduce reliance on Western financial architectures like SWIFT, and resist external sanctions, effectively creating resilient trade corridors. The focus on local currency trade and digital currency interoperability supports economic sovereignty and regional resilience.

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Connecting AI Strategy with Supply Chain and Domestic Manufacturing

India’s AI ambitions are intricately linked to supply chain resilience efforts. Confronted with shortages of chips, ASICs, and critical minerals—such as rare earth elements—India is investing in domestic manufacturing initiatives like the National Security Industrial Hub. These efforts aim to diversify sources, reduce vulnerabilities, and secure a sustainable supply chain critical for AI infrastructure.

Moreover, localizing production and mining domestically are seen as strategic moves to strengthen technological sovereignty and support large-scale AI deployment. Such measures are vital for India to scale AI research while maintaining geopolitical independence.

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Challenges on the Horizon

Despite advances, India faces significant obstacles:

• Hardware supply chain constraints remain a critical bottleneck, risking the scalability of AI infrastructure and deployment.
• Community and environmental concerns—particularly around the energy consumption and ecological impact of new data centers—call for sustainable development models that balance growth with ecological responsibility.
• The fragmentation of norms—driven by diverging geopolitical interests—threatens international cooperation on AI standards, risking divergent regulatory frameworks that could hinder global progress.

Addressing these issues requires continued diplomatic engagement, innovative supply chain strategies, and inclusive policy-making that safeguards both societal and environmental interests.

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Implications and the Road Ahead

India’s strategic diplomacy and regional initiatives are positioning it as a bridge-builder in the multipolar AI ecosystem. By promoting shared standards, regional resilience, and technological sovereignty, India aims to shape a balanced, inclusive AI future aligned with its broader vision of responsible global leadership.

In the broader context of BRICS-led efforts to challenge Western dominance in finance and digital infrastructure, India’s role becomes even more critical. The collaborative development of alternative financial systems—like CBDCs and trade corridors—alongside responsible AI governance, signals a move toward a more equitable, resilient, and multipolar technological landscape.

Current Status and Outlook:

India’s leadership in fostering inclusive AI frameworks continues to gain momentum, with ongoing negotiations and collaborations aimed at harmonizing standards and building resilient supply chains. While challenges persist, India’s diplomatic and technological initiatives suggest a long-term strategic vision—one that emphasizes shared progress, regional stability, and global cooperation in the emerging AI-driven world.

As the global order shifts, India’s role as a responsible bridge-builder and innovative leader will be pivotal in determining whether AI becomes a force for global stability and shared prosperity or fuels fragmentation and rivalry. The coming years will be crucial in shaping this trajectory.