By Surabhi Gupta
New Delhi: India is making notable progress in artificial intelligence (AI), with a focus on decreasing its dependence on foreign technologies by creating its own AI chips and large language models (LLMs). This initiative aims to boost India's position in the global AI landscape while tackling issues related to access to advanced AI hardware from companies like NVIDIA.
The Ministry of Electronics and Information Technology (MeitY), in collaboration with the Centre for Development of Advanced Computing (C-DAC), has initiated an ambitious project to design AI chips tailored for India. These chips are anticipated to support generative AI models, providing the country with greater control over its AI infrastructure. This step is vital as India aims to lessen its exposure to external factors, like supply chain disruptions or geopolitical tensions, which could impact access to foreign processors essential for training and running AI systems.
Nonetheless, the creation of homegrown AI chips and models also presents new challenges. Anuj Agarwal, Chairman of the Cyber AI and Data Privacy Bar Association, expressed concerns about the potential increase in cybercrime as AI technologies evolve.
"With the advent of Artificial Intelligence, the speed of all work will be that of AI, due to which its quantum can increase 100 times. Its sophistication can increase," he told ETV Bharat, adding that even educated people who lack the technical skills for cybercrime will be able to commit such offences.
Agarwal mentioned that wherever the use of AI is banned, it is primarily due to data privacy concerns. He noted that while department officials have imposed these bans and claimed that AI usage would be restricted, it has not made a significant difference. He pointed out that despite the ban, the majority of the country continues to use AI, with only a small fraction of people adhering to the restrictions.
Agarwal emphasised that the main issue is the ease of access, as AI tools are available for free, making it difficult to prevent their usage.
Karnnika A Seth, Advocate & Cyberlaw Expert, discussed the risks tied to indigenous AI models. "One major concern is data privacy leakage, where sensitive personal data could be stolen," she said. "Additionally, there’s the risk of data poisoning, backdoor attacks, and malicious code insertions, which could compromise AI outputs. Reverse engineering is another threat, where AI structures and parameters could be stolen."
Seth emphasised the importance of cybersecurity measures, such as encryption and regular audits, and stressed the need for data ethics. "Reducing reliance on foreign processors and strengthening infrastructure is essential for developing secure AI technologies," she added.
Rising Cybercrime in India
The rising threat of AI-driven cybercrime coincides with a notable increase in fraudulent activities in India. Government statistics indicate that over the last four years, fraudsters have swindled the public out of Rs 33,165 crore, with an alarming Rs 22,812 crore lost in 2024 alone. This surge in cybercrime is reflected in the significant rise in complaints reported to the National Cyber Reporting Platform (NCRP), which saw complaints jump from around 1.37 lakhs in 2021 to over 17 lakhs in 2024. Fraud cases, which totalled Rs 551 crore in 2021, skyrocketed to Rs 7,496 crore in 2023.
The data also points out that Tier 2 and Tier 3 cities in India have emerged as hotspots for cybercrime, as fraudsters target these areas where residents may be less informed about digital threats. With AI tools becoming increasingly advanced and accessible, experts are concerned that these trends will continue to escalate, complicating efforts to tackle cybercrime.
Government Initiatives to Combat Cybercrime
In light of the growing cybercrime threat, Union Home Minister Amit Shah has called on the Ministry of Home Affairs to create an e-FIR system, enabling citizens to file complaints online through the NCRP. This system aims to streamline the process for individuals to report cybercrimes and pursue justice.
Additionally, the Indian Cyber Crime Coordination Centre (I4C) is collaborating closely with state police forces to enhance the nation’s cybercrime response capabilities. These initiatives are part of a comprehensive strategy to address the rising prevalence of cybercrime while keeping pace with the rapid advancement of AI technology.
Also read: India Developing Its Own AI Chip, Plans Generative AI Model With 18,693 GPUs
