Drug development and personalized treatment are changing as a result of the combination of genomics and artificial intelligence (AI), which holds promise for resolving India's complicated healthcare system. Given that more than 60% of deaths in India are caused by chronic diseases including diabetes, cancer, and cardiovascular ailments, the country urgently needs accurate and affordable medical treatments. This study investigates how AI may be used to drive population-specific drug development and targeted therapy by leveraging India's enormous genetic diversity, as demonstrated by programs like the IndiGen program. Important phases of the drug development pipeline are being accelerated by AI technologies, such as generative models, deep learning, and machine learning. These include of lead optimization, virtual screening, target discovery, and drug toxicity and efficacy prediction. In order to find new biomarkers, disease pathways, and drug resistance mechanisms, AI also makes it easier to analyze complicated genomic, transcriptomic, and proteomic information. Therefore, by providing individualized treatment based on a person's genetic composition, AI facilitates the shift from generic to precision medicine. Even with the quick developments, AI is still not widely used in the biotech and pharmaceutical industries in India. Widespread optimism over AI's revolutionary potential was emphasized by a national survey of 207 stakeholders, but it also identified obstacles such a lack of technical competence, fragmented data ecosystems, high implementation costs, and inadequate infrastructure. Concerns over ethical justice, data privacy, and the opaque "black-box" character of many AI models were also mentioned by respondents as issues that impede clinical trust and regulatory acceptance. The study highlights the necessity of making strategic investments in infrastructure, education, and interdisciplinary cooperation in order to fully reap the benefits of AI-driven genomics. To guarantee fair access and responsible innovation, it also urges the implementation of flexible legal frameworks, standardized data standards, and moral protections. AI's impact can be further increased through public-private partnerships, targeted rare disease research, and the incorporation of digital health tools. By tackling these issues, India can fully utilize AI and genomics to transform drug discovery, enhance diagnostics, and provide individualized, reasonably priced treatments that are suited to its heterogeneous populace. The study emphasizes that India is in a strong position to lead the world in precision medicine and AIpowered pharmaceutical development with focused efforts.