According to the “State of India’s Digital Economy (SIDE) 2026” report released by the Indian Council for Research on International Economic Relations (ICRIER)-Prosus Centre for Internet and Digital Economy (IPCIDE), India ranks as the world’s 5th most digitalised economy.
In the Connect, Harness, Innovate, Protect and Sustain (CHIPS) index for AI, India is positioned 4th globally, behind USA, China, and Singapore. India also recorded an 8.8% growth in internet users. It is to be noted that India accounts for 19.9% of global AI users and possesses the 2nd largest concentration of AI talent worldwide.
The Digital India BHASHINI Division (DIBD) has launched the ‘VYOMA Innovation Challenge’ to promote the development of open-source, multilingual, and voice-first AI solutions. The initiative is launched in partnership with Current AI and Kalpa Impact.
The challenge focuses on creating AI solutions that can operate in offline and low-connectivity environments. It is structured around ‘Sunno Sutra’, a multilingual, voice-first, open-source handheld AI reference device.
The Indian Army has successfully completed operational trials of the Divyastra Mk-1 in Jodhpur, Rajasthan.
The Divyastra Mk-1 is an advanced indigenous AI powered tactical loitering munition system developed by Hoverit. It is designed to strengthen Intelligence, Surveillance, and Reconnaissance (ISR) capabilities along the border regions of India.
Hindustan Unilever Ltd has inaugurated the Unilever Fragrance Hub (UFH) at the IIT Bombay. This is the third such global facility for the company, after the ones in the UK and the USA.
Chandigarh University in Punjab has become the first private university in India to launch an ‘IndiaAI Data Lab’.
The lab has been established in partnership with Intel India to enhance students’ employability by providing industry-relevant skills in AI, Data Science, and emerging technologies.
Microsoft has unveiled “Majorana 2”, its second-generation topological quantum computing chip developed using its agentic AI platform, “Microsoft Discovery”.
The prototype features 12 topological qubits as a model for scalable systems, with the company aiming to develop commercially viable quantum systems by 2029. Additionally, Microsoft has introduced “Scout”, an AI-powered Microsoft 365 assistant designed to autonomously manage schedules, emails, and meetings.
The Digital India BHASHINI Division (DIBD) has signed an MoU with the Centre for Digital Public Infrastructure & Artificial Intelligence (DPI-AI) at Kathmandu University, Nepal.
The partnership aims to advance Language AI, multilingual digital public infrastructure, and inclusive digital ecosystems in both India and Nepal.
The National Education Society for Tribal Students (NESTS) has signed three MoUs to modernise Eklavya Model Residential Schools (EMRSs) through digital innovation and structural enhancements.
Under the first agreement, the EdTech firm CoGrad will provide 499 EMRSs with two years of free access to its “Medha AI” platform. NESTS has also renewed its corporate philanthropy partnership with the Learning Links Foundation (Amazon) for another two years. Additionally, a governance MoU signed with the Bihar Mahadalit Vikas Mission has standardised EMRS funding at ₹1.47 lakh per student.
The Indian Air Force (IAF) has signed three contracts with the IIT Bombay to indigenously develop AI-driven predictive maintenance technologies.
This initiative includes the development of a digital diagnostic health index for the Sukhoi Su-30MKI fighter aircraft fleet. The Su-30MKI is a twin-engine, multi-role fighter aircraft developed by Sukhoi, Russia, and customised for India by Hindustan Aeronautics Ltd (HAL).
Tata Consultancy Services (TCS) has signed a multi-million dollar deal with Sweden-based SKF to deploy a next-generation Enterprise Resource Planning (ERP) platform.
The partnership aims to leverage AI across Information Technology (IT) systems and business operations to enhance customer experience and support long-term growth. As part of the agreement, the former will provide end-to-end managed services, including applications, infrastructure, data management, end-user services, security, and connectivity for SKF operations globally.
The Cabinet Committee on Economic Affairs (CCEA) has approved the ‘SARTHAK-PDS’ (Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS) umbrella scheme with a central outlay of ₹25,530 crore.
The program will be implemented for 5 years from April 2026 to March 2031, aiming to modernize the food subsidy network and benefit citizens covered under the National Food Security Act (NFSA).
The scheme integrates two legacy programs: the ‘Assistance to State Agencies for intra-State movement of foodgrains and Fair Price Shop (FPS) dealers' margin under NFSA’ and the ‘Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS)’. This integration aims to reduce leakages and streamline operations.
Indian Railways (IR) has inaugurated a Centre of Excellence (CoE) named “CHIRAG” (Centre for HR Information Systems, Research and Analytics in Governance) at the South Central Railway (SCR) grounds in Secunderabad, Telangana.
The centre is dedicated to human resource management training, research, and digital transformation within IR. It aims to serve as the technological backbone for the Human Resource Management System (HRMS) by providing nationwide certified, role-based training. The project is scheduled for full completion by May 2028.
The Tamil Nadu government has signed an MoU with Larsen & Toubro (L&T) for investments worth ₹18,600 crore.
The agreement covers 3 projects: a Hyperscale and Edge AI Data Centre in Kancheepuram (₹15,000 crore), an Electronics and Electrical Systems Manufacturing Hub in Coimbatore (₹2,500 crore), and an Offshore Wind Infrastructure and Shipyard Expansion in Kattupalli, Tiruvallur (₹1,100 crore).
Google and UNICEF have announced a 3-year global partnership at the Education World Forum (EWF) 2026 to deploy AI-powered education tools and digital learning resources for students and educators.
The initiative aims to bridge the digital divide and strengthen foundational skills such as reading, comprehension, and numeracy. The project will be implemented in Brazil, India, Kenya, and Pakistan, in collaboration with national governments and local communities.
Google has announced the ‘Google for Education Schoolers (GES)’, a free AI training programme for teachers, at the Education World Forum 2026 in London. Launched in collaboration with the UNICEF, the initiative aims to provide mobile-first AI training to school and higher education teachers on the responsible use of AI tools.
In its initial phase, the programme will be implemented in partnership with the governments of Maharashtra, Chhattisgarh, Assam, Punjab, and the UT of Ladakh. During the first year, the programme will be accessible in 6 Indian languages namely Assamese, Hindi, Marathi, Telugu, Odia, and Punjabi.
Tata Consultancy Services (TCS) has become the first Global Systems Integrator (GSI) to partner with the France-based Mistral AI, an AI startup.
The collaboration aims to deliver advanced enterprise generative Artificial Intelligence (GenAI) solutions for clients worldwide. The former will use ‘Mistral Forge’ to develop custom enterprise AI models, allowing clients to integrate their specific data and context for better decision-making.
The Andhra Pradesh government, in collaboration with the Small Industries Development Bank of India (SIDBI), has announced the launch of an angel fund through the Ratan Tata Innovation Hub (RTIH) in New Delhi.
The initiative aims to make the state a hub for deep-tech innovation by providing startups with early-stage funding, industry access, ecosystem support, and global scaling opportunities.
The Digital India BHASHINI Division (DIBD) has signed an MoU with the Department for Promotion of Industry and Internal Trade (DPIIT) to launch the “BHASHINI Seva/Sanchalan - A BHASHINI Sahayogi Program”.
The initiative aims to enhance multilingual digital capabilities across the industry and internal trade ecosystem in India by leveraging the BHASHINI platform, which serves as the National Language Digital Public Infrastructure of the country.
The Gujarat government has signed an MoU with Meta Platforms Inc to launch a WhatsApp chatbot under the ‘Sugam Digital’ initiative.
The 2-year collaboration aims to enhance e-governance in the state by implementing AI driven public services, accessibility projects, and digital skilling programmes. Through this chatbot, citizens can access around 20 public services from 5 departments in both Gujarati and English.