The National Association of Software and Service Companies (NASSCOM) has called on the Indian government to revise its public procurement processes to favor domestic AI foundation models over global Big Tech firms like Google and Meta. This recommendation was outlined in the 17th report of the Committee on External Affairs, titled “India’s Role in Global Tech Diplomacy, Digital Governance, Outer Space Diplomacy, AI and Emerging Innovations,” tabled in September 2026, according to medianama.com.
NASSCOM, representing over 3,500 member companies including Tata Consultancy Services, Cognizant, and Accenture India, highlighted the structural challenges in current government tenders. During oral evidence on April 30, 2026, the trade body pointed out that lowest-bidder tendering disadvantages government-funded AI developers such as Sarvam AI. NASSCOM warned that without a clear adoption pathway, local startups could be forced to compete solely on price against Big Tech’s established models, undermining government investments in AI.
The call to review procurement processes comes amid concerns that India’s AI ecosystem could be overshadowed by global players if domestic models are not given preferential treatment. NASSCOM’s stance reflects broader efforts to strengthen India’s digital sovereignty and support homegrown innovation. The report’s recommendations align with the government’s push for self-reliance in emerging technologies, emphasizing the need for an AI inclusion roadmap to ensure balanced competition.
The parliamentary report, tabled in September 2026, provides a detailed framework for India’s role in global tech diplomacy and digital governance. NASSCOM’s advocacy for procurement reforms aims to create a more level playing field for Indian AI developers, reinforcing the country’s strategic priorities in technology development and deployment.