Background: India's move to artificial intelligence is part of a wider digital tech transformation of enhanced public digital infrastructure, platform-based finance, widening connectivity, and fast-growing technology services base. India's challenge is not just to enhance productivity. It is also to make sure that algorithmic systems advance dignity, inclusion, fairness, transparency and democratic accountability. This article presents a Bharatiya AI Model of human-centric economic development by engaging ethical artificial intelligence with the normative framework of Integral Humanism. The methodology of the study is based on mixed secondary research comprising literature-based conceptual analysis, secondary data extraction, descriptive statistics, CAGR estimation, comparative indexing, limited correlation analysis, and scenario-based projection. Public reports and databases from MeitY, IndiaAI, NITI Aayog, TRAI, NPCI, RBI, World Bank, ILO, OECD, UNESCO, NIST, Stanford HAI, and NASSCOM will be the key data sources. According to the findings, the volume of UPI transactions increased from about 12.5 billion in FY2020 to 185.8 billion in FY2025. In the same period, total internet subscribers grew from 743.19 million in March 2020 to 969.10 million in March 2025. The analysis shows that the best AI opportunity for India is the one where AI is a public capability and not only a private automator. Simultaneously, the need for auditability, explainability, grievance redressal, and humans in the loop is necessary for high-risk domains such as healthcare, welfare delivery, finance, and public administration. The case for an AI pathway to help India effective provide innovation but maintaining data sovereignty; help re-skill workers; hold institutions accountable; keep various sectors safe; and remain Antyodaya-oriented in inclusion. The Bharatiya AI Model being proposed, values development logic in which technological advancement is assessed in terms of its contribution towards fulfilment of human dignity, social justice, productivity and sustainable national self-reliance.