Artificial intelligence (AI) is transforming how the Indian government handle, from bestowing social benefits to boosting law enforcement. However, the use of AI for the purpose of surveillance techniques such as Aadhar authentication, facial recognition, and predictive policing—raises fundamental concerns about privacy and individual liberty. The Supreme Court of India declared that the right to privacy is a fundamental right. However, number of government practices since then have exceeded the limits of that protection. This paper examines how AI-based monitoring creates terror for privacy rights in India, assesses current regulations such as the Digital Personal Data Protection Act and contrasts India's approach with global counterparts. This winds up by recommending perspective to develop an AI governance system that meets both state security concerns and citizens’ fundamental rights.