New Delhi: India must accelerate the development of domestic technology capabilities, strengthen economic resilience and build safeguards against dependence on foreign artificial intelligence (AI) systems as geopolitical tensions reshape government priorities worldwide, according to Dean Grandy, KPMG's global head for government and public sector.
"India needs the ability to create its own solutions to address national problems. It needs the economic capacity to invest in solutions and areas that will deliver outcomes in its best interests," Grandy told ET.
He dismissed concerns over the outflow of capital saying the issue was not specific to India.
"This is a global phenomenon driven by many external factors that attract investment and human capital towards different opportunities and operating environments," he said.
Given geopolitical volatility, no country or region can sustain itself entirely without support from allies, he said. Foreign trade arrangements and multilateral agreements are important because they provide a shared platform for understanding, investment and a common vision for the future.
"Collaboration between like-minded governments, including the sharing of experiences, insights and capabilities, as well as funding arrangements, is essential," he said, adding that these partnerships enable India and other countries to co-invest in their futures.
Geopolitical volatility in the last few years has driven fundamental shifts in the way governments need to think about protecting citizens and ensuring societal and economic well-being, he said.
"This represents a shift away from social well-being towards national security considerations. It has broader implications because there is less money available for welfare, healthcare and education," he said. The shift is also reshaping international partnerships, with allied countries collaborating on large defence and security programmes, he said. Governments have begun to ask how they can build domestic capabilities, secure critical infrastructure and retain control over data.
Grandy said India's scale, economic growth, young population and expanding artificial intelligence capabilities give it a strong foundation for sustainable growth.
On AI
India, he said, must invest in domestic infrastructure, large language models, digital literacy and technical capabilities while maintaining close links with other governments, he said. It must also be able to intervene quickly when problems emerge around AI access, supply or use, he noted.
Grandy said India should develop its own AI regulations rather than wait for a single global framework. He considered this unlikely because of competing national interests.
"Appropriate safeguards must be in place to ensure that the interests of India, its citizens, its business environment and the data flowing through these systems are protected and managed effectively for the future," he said.
He does not see a single global regulatory framework as a possibility with too many competing interests, particularly among countries at the frontier of AI development.
"India needs the ability to create its own solutions to address national problems. It needs the economic capacity to invest in solutions and areas that will deliver outcomes in its best interests," Grandy told ET.
He dismissed concerns over the outflow of capital saying the issue was not specific to India.
"This is a global phenomenon driven by many external factors that attract investment and human capital towards different opportunities and operating environments," he said.
Given geopolitical volatility, no country or region can sustain itself entirely without support from allies, he said. Foreign trade arrangements and multilateral agreements are important because they provide a shared platform for understanding, investment and a common vision for the future.
"Collaboration between like-minded governments, including the sharing of experiences, insights and capabilities, as well as funding arrangements, is essential," he said, adding that these partnerships enable India and other countries to co-invest in their futures.
Geopolitical volatility in the last few years has driven fundamental shifts in the way governments need to think about protecting citizens and ensuring societal and economic well-being, he said.
"This represents a shift away from social well-being towards national security considerations. It has broader implications because there is less money available for welfare, healthcare and education," he said. The shift is also reshaping international partnerships, with allied countries collaborating on large defence and security programmes, he said. Governments have begun to ask how they can build domestic capabilities, secure critical infrastructure and retain control over data.
Grandy said India's scale, economic growth, young population and expanding artificial intelligence capabilities give it a strong foundation for sustainable growth.
On AI
India, he said, must invest in domestic infrastructure, large language models, digital literacy and technical capabilities while maintaining close links with other governments, he said. It must also be able to intervene quickly when problems emerge around AI access, supply or use, he noted.
Grandy said India should develop its own AI regulations rather than wait for a single global framework. He considered this unlikely because of competing national interests.
"Appropriate safeguards must be in place to ensure that the interests of India, its citizens, its business environment and the data flowing through these systems are protected and managed effectively for the future," he said.
He does not see a single global regulatory framework as a possibility with too many competing interests, particularly among countries at the frontier of AI development.