Digitalisation has made significant inroads across all sectors of the Indian economy, driven by increasing broadband penetration, rapid technological progress, low data costs and the government’s focus on building digital infrastructure. The government and utilities sectors are no exception, as segments such as electricity, water, gas and telecommunications undergo a digital transformation. This big shift can not only help improve governance by making it more accessible, but also promises to streamline operations, reduce expenses and improve the customer experience.
A look at the key technology trends that are transforming the government and utilities sector, the challenges involved and the way forward…
Artificial intelligence
Artificial intelligence (AI) has emerged as a major driver for change in the government and utilities sector. From improving e-governance and enhancing customer experience to saving resources, enabling predictive maintenance, optimising supply chains and procurement, and increasing profits, AI has several benefits.
For instance, the Ministry of Electronics and Information Technology (MeitY) leveraged BHASHINI, a key initiative under the Digital India programme, to provide multilingual access in 11 Indian languages at the Maha Kumbh, 2025. This enabled information dissemination in real time, multilingual access to emergency services and assistance with lost and found items. Further, the Kumbh Sah‘AI’yak, a multilingual voice-enabled chatbot driven by AI technologies, such as Llama LLM, helped millions of pilgrims by providing a seamless experience. Meanwhile, the Ministry of Health and Family Welfare integrated the “Clinical Decision Support System” into eSanjeevani, the national telemedicine platform. As of March 2025, 196 million eSanjeevani consultations have benefited from uniform data capture, with 12 million of these supported by AI-recommended diagnoses.
In the utilities sector, Karnataka’s energy department has been using AI and machine learning (ML) since July 2024 to study energy demand, conserve power, and increase electricity generation and profits. Between July 17, 2024 and September 30, 2024, the state energy department reportedly generated a profit of Rs 1.92 billion, with AI and ML accounting for profits worth Rs 0.71 billion. Further, in the oil and gas sector, Cairn Oil and Gas is reportedly utilising AI-powered digital twins of gas and offshore facilities. This is estimated to reduce flaring by about 30 per cent while improving fuel gas optimisation by 18 per cent. In December 2024, Bengaluru’s water board decided to introduce AI-powered smart water meters to reduce unaccounted-for water levels and revenue losses. Initially, 2000 smart meters were deployed under a public-private partnership model.
Blockchain
Blockchain, a fast growing and revolutionary technology known for its transparency and security, is also emerging as a key enabler of digitalisation in the sector. Smart, self-executing contracts can eliminate the need for intermediaries and fast-track processes. Further, this technology enhances system efficiency and agility through features such as asset tracking and record keeping. Blockchain can also be leveraged for energy trading.
Under the National Blockchain Framework, a blockchain technology solution called Property Chain is being deployed on a pilot basis to authenticate property transactions in the states of Karnataka and Jharkhand. Further, in December 2024, Odisha became the first Indian state to launch blockchain technology to strengthen its support mechanism for survivors of gender-based violence. The platform enables secure management of survivor data and coordination among multiple support agencies.
With regard to utilities, blockchain solutions are being deployed across the power, water, and oil and gas segments. For example, Adani Power entered into a joint venture with Sirius International Holding in 2023 to leverage technologies such as AI, the internet of things (IoT) and secured blockchain products across various industries. In the oil and gas sector, Indian Oil Corporation Limited has been applying blockchain to lubricant packages to determine their authenticity. Meanwhile, following a cyberattack in April 2025, the Bangalore Water Supply and Sewerage Board is exploring blockchain technology to enhance digital security through decentralisation and tamper-proof records.
Cloud computing
By replacing legacy systems and adopting a data-driven, cloud-based approach, the government and utilities can enjoy multiple benefits such as smooth data integration and analytics, greater transparency, higher collaboration, lower operating costs and improved efficiency.
As per the government’s latest estimates, more than 300 government departments use cloud services. The government’s GI cloud, MeghRaj, ensures optimal use of IT infrastructure through cloud, supporting the success of various government initiatives. For instance, since 2021, the National Highways Authority of India has been using Data Lake software, a unique cloud-based and AI-powered platform that forecasts delays and likely disputes and issues advance alerts.
Utilities are also deploying cloud computing technology. In February 2025, Tata Power partnered with Amazon Web Services to fast-track the transition to a greener, smarter and more consumer-centric energy ecosystem by adopting a cloud-first digital infrastructure. Meanwhile, IGL Genesis Technologies Limited is manufacturing cloud-based smart meters.
Internet of things
Complementing other technologies, IoT offers real-time data that enables evidence-based policymaking, demand forecasting and judicious use of resources.
According to the government, all 100 smart cities now have operational integrated command and control centres, which have significantly improved city operations such as transport, water supply and solid waste management by integrating emerging technologies like IoT. Further, the Ministry of Road Transport and Highways is engaging in discussions with several Indian states to install AI-enabled traffic monitoring systems to curb road accidents and minimise traffic congestion. Real-time data from cameras, sensors and IoT devices will be used for gathering fast insights.
The Calcutta Electric Supply Corporation (CESC) has deployed automated meters that use Vodafone Idea Business’ IoT SIMs Connectivity solution along with managed IoT services. As a result, CESC’s meter reading accuracy has increased to over 99 per cent, leading to a positive customer experience while bringing down operational costs. In addition, in August 2024, Maharashtra’s Water Resources Department partnered with Schneider Electric to accelerate technology adoption for sustainable water management. EcoStruxure, an IoT platform developed by Schneider Electric, provides real-time data, analytics and professional services to improve water utilisation, reduce leakages and optimise water supply. The Coimbatore Corporation is also planning to leverage IoT-based smart water management systems in various areas.
The way forward
While these technologies seem quite promising, especially as they mature further, there are a couple of challenges that need to be resolved for their scalability.
A major issue that arises with AI is the ethical use of data and the protection of user privacy. The Data Security Council of India’s (DSCI) latest Cyber Threat Report predicts that the integration of fake government service applications and fraudulent investment platforms may give rise to hybrid threats in 2025. The report also notes that the increasing reliance on biometric authentication may contribute to cybercrimes.
Further, blockchain has drawbacks such as higher implementation costs, requires more storage space, is slower than traditional networks as it relies on various processes such as proof of work, and does not permit data modification easily. As per industry estimates, cloud computing accounts for 2.5-3.7 per cent of global greenhouse gas emissions. To combat this challenge, green computing technologies such as closed loop and direct chip cooling need to be promoted. Lastly, IoT adoption across Indian utilities presents several challenges including interoperability, reliable communication, cybersecurity and capacity building. Additionally, all these technologies need a robust ICT infrastructure that can support high network bandwidth.
In sum, simply deploying new technologies is not enough. Their effective utilisation depends on addressing key roadblocks. Measures such as effective regulation of these technologies to prevent cyberattacks and continued innovation aimed at reducing blockchain storage requirements, etc. can go a long way in ensuring their large-scale adoption by the government and utilities.
