The integration of Artificial Intelligence (AI) into physical education (PE) curriculum design presents a transformative opportunity for the Indian school education system. This paper examines how AI-enabled approaches can address long-standing challenges in PE, including limited personalization, inconsistent assessment, low student engagement, and inequitable access to quality instruction. Drawing on contemporary pedagogical theories and national policy priorities, particularly the National Education Policy 2020, the study conceptualizes an India centric framework for AI-supported PE curriculum reform. AI applications such as adaptive learning systems, movement analysis, health and safety analytics, and assistive technologies are explored for their potential to enhance skill acquisition, monitor student well-being, and support inclusive participation across diverse learner populations. The paper also highlights the relevance of integrating indigenous sports and culturally responsive practices to ensure contextual alignment. Critical considerations related to infrastructure readiness, teacher capacity building, data ethics, and governance are discussed to ensure responsible and sustainable implementation. By positioning AI as a supportive tool rather than a replacement for teachers, the study emphasizes a balanced techno-pedagogical approach that strengthens human interaction in PE. Overall, the paper argues that thoughtfully designed AI integration can significantly improve the quality, equity, and long-term impact of physical education in India, fostering lifelong engagement in physical activity and holistic student development.