India is witnessing a transformative era in Artificial Intelligence, driven by the visionary leadership of Prime Minister Modi. For the first time in the nation’s history, the government is actively building an AI ecosystem that ensures affordable access to computing power, GPUs, and research opportunities.
Unlike the past, where AI was limited to a select few and dominated by global tech giants, the Modi government’s forward-thinking policies are democratizing access to AI resources. By equipping students, startups, and innovators with world-class AI infrastructure, the government is fostering a truly inclusive and competitive environment. Initiatives such as the IndiaAI Mission and the establishment of Centres of Excellence for AI are fortifying the country’s AI landscape, driving innovation and self-reliance in this crucial sector.
These initiatives align with the vision of Viksit Bharat 2047, positioning India as a global AI leader, leveraging advanced technology to fuel economic growth, enhance governance, and drive societal progress.
AI Compute and Semiconductor Infrastructure
India is rapidly building a strong AI computing and semiconductor infrastructure to support its growing digital economy. With the approval of the IndiaAI Mission in 2024, the government allocated ₹10,300 crore over five years to strengthen AI capabilities. A key focus of this mission is the development of a high-end common computing facility equipped with 18,693 Graphics Processing Units (GPUs), making it one of the most extensive AI compute infrastructures globally. This capacity is nearly nine times that of the open-source AI model DeepSeek and about two-thirds of what ChatGPT operates on.
Here are the key developments:
Scaling AI Compute Infrastructure: In the first phase of the IndiaAI Mission, 10,000 GPUs (Graphics Processing Units) have been made available, with more to be added soon. GPUs are essential for running AI models efficiently, especially for tasks like natural language processing and computer vision. By expanding GPU availability, India is ensuring that AI solutions are developed in Indian languages and tailored to local contexts, rather than relying solely on foreign technology.
Opening Access to High-Performance Computing: Many countries have AI infrastructure controlled by big tech companies, making it expensive and inaccessible for small businesses and researchers. India has taken a different approach by launching an open GPU marketplace. This initiative makes high-performance computing affordable and accessible for startups, students, and researchers, enabling them to build AI solutions without depending on global tech monopolies.
Robust GPU Supply Chain: The government has strategically selected 10 companies to supply GPUs, ensuring a stable and diversified supply chain. This move prevents over-reliance on a single vendor and safeguards India’s AI ecosystem from potential supply disruptions.
Indigenous GPU Capabilities: To reduce dependence on imported AI hardware, India has set an ambitious goal to develop its own GPU within the next three to five years. This initiative will boost self-reliance, strengthen India’s position in AI technology, and create new opportunities for domestic semiconductor and hardware manufacturing.
Affordable Compute Access: Recognizing the high cost of AI computing, the government is setting up a common compute facility where researchers and startups can access GPU power at ₹100 per hour—a significant reduction from the global rate of $2.5 to $3 per hour (₹200-250). This will greatly benefit AI startups and academic researchers, making AI development much more cost-effective in India.
Strengthening Semiconductor Manufacturing: India is also making significant progress in semiconductor manufacturing, which is crucial for AI hardware. Currently, five semiconductor plants are under construction, aiming to make India a major player in the global semiconductor industry. This will not only support AI innovation but also boost the electronics sector, reduce dependency on imports, and enhance national security by securing India’s AI supply chain.
These developments mark a game-changing shift in India’s AI landscape. By making high-performance computing accessible and affordable, developing indigenous AI capabilities, and strengthening semiconductor manufacturing, India is laying the foundation to become a global AI powerhouse by 2047, in line with the vision of Viksit Bharat.
Advancing AI with Open Data and Centres of Excellence (CoE)
Recognising the importance of data in AI development, the Modi government has launched the IndiaAI Dataset Platform to provide seamless access to high-quality, non-personal datasets. This platform will house the largest collection of anonymised data, empowering Indian startups and researchers to develop advanced AI applications. By ensuring diverse and abundant datasets, this initiative will drive AI-driven solutions across key sectors, enhancing innovation and accuracy.
IndiaAI Dataset Platform for Open Data Access: The government is launching a unified repository of high-quality, anonymized datasets to support Indian startups and researchers. Currently, many AI models require extensive real-world data to improve their accuracy, but access to quality datasets is often limited. By removing barriers to data access, this platform will enable innovators to train better AI models without relying on expensive or private datasets.
Boosting AI Model Accuracy with Diverse Data: AI models perform best when trained on diverse, high-volume, and unbiased datasets. This initiative will provide large-scale, non-personal datasets covering critical areas such as agriculture, weather forecasting, and traffic management. By doing so, it will help reduce biases in AI applications, leading to more accurate, reliable, and contextually relevant AI solutions for India.
Centres of Excellence (CoEs) for AI: To drive research and innovation, the government has set up three AI Centres of Excellence (CoEs) in Healthcare, Agriculture, and Sustainable Cities in New Delhi. These centers focus on developing AI-powered solutions for public welfare, such as AI-driven diagnostics and medical advancements in healthcare, precision farming in agriculture, and smart urban planning for sustainable cities. The Union Budget 2025 further announced the establishment of a fourth AI CoE in education, with a ₹500 crore budget allocation. This will focus on AI-driven learning tools, personalized education platforms, and skill enhancement programs.
Skilling for AI-Driven Industries: To equip India’s workforce with industry-relevant AI expertise, the government plans to establish five National Centres of Excellence for AI Skilling. These centres will provide cutting-edge AI training, helping young professionals build skills in AI-driven manufacturing, automation, and industrial applications. Developed in collaboration with global partners, this initiative aligns with India’s ‘Make for India, Make for the World’ vision, ensuring that India becomes a global leader in AI-powered industries.
India’s AI Models & Language Technologies
The government is facilitating the development of India’s own foundational models, including Large Language Models (LLMs) and problem-specific AI solutions tailored to Indian needs. To foster AI research, multiple Centres of Excellence have also been set up.
India’s Foundational Large Language Models (LLMs): IndiaAI has launched an initiative to develop indigenous foundational AI models, including Large Language Models (LLMs) and Small Language Models (SLMs). These models will be designed to cater to India-specific linguistic and contextual needs, ensuring that AI advancements align with local requirements. By issuing a call for proposals, the government aims to encourage researchers and tech companies to contribute to the development of India’s own AI-powered language models, reducing dependency on foreign AI systems.
Digital India BHASHINI: To bridge the digital divide and promote language inclusivity, the Digital India BHASHINI initiative is leveraging AI-driven language translation. This platform enables easy internet and digital service access in Indian languages, ensuring that non-English speakers can navigate the digital world effortlessly. BHASHINI also supports voice-based interactions and Indic content creation, making it a crucial tool for expanding digital literacy and inclusion across India.
BharatGen: The World’s First Government-Funded Multimodal LLM – Launched in 2024 in Delhi, BharatGen is the world’s first government-backed multimodal LLM initiative. It is designed to enhance public service delivery and citizen engagement through advanced AI capabilities in language processing, speech recognition, and computer vision. Developed by a consortium of AI researchers from India’s top academic institutions, BharatGen represents a significant step towards building sovereign AI solutions tailored for India’s needs.
Sarvam-1 AI Model: One of India’s most advanced language models, Sarvam-1 is optimized specifically for Indian languages. With 2 billion parameters, it supports ten major Indian languages and is designed for applications such as language translation, text summarization, and content generation. This AI model plays a crucial role in enabling multilingual digital interactions and fostering a rich ecosystem of Indic-language AI solutions.
Chitralekha: Open-Source Video Transcreation – Developed by AI4Bhārat, Chitralekha is an open-source AI-powered video transcreation platform. It allows users to generate and edit audio transcripts in multiple Indic languages, making it an essential tool for content creators, educators, and media professionals. Chitralekha is set to revolutionize the accessibility of video content, ensuring that regional language speakers can engage with digital media more effectively.
Hanooman’s Everest 1.0: A Multilingual AI Breakthrough – Developed by SML, Everest 1.0 is a multilingual AI system that currently supports 35 Indian languages, with plans to expand to 90 languages in the future. This AI model is designed to strengthen linguistic diversity in AI applications, ensuring that users from various linguistic backgrounds can benefit from AI-powered tools. Everest 1.0 is a significant milestone in India’s AI journey, as it empowers businesses, researchers, and the public with linguistically adaptive AI solutions.
AI Integration with Digital Public Infrastructure
India’s Digital Public Infrastructure (DPI) has redefined digital innovation by combining public funding with private sector-led innovation. Platforms like Aadhaar, UPI, and DigiLocker serve as the foundation, while private entities build application-specific solutions on top of them. This model is now being enhanced with AI, integrating intelligent solutions into financial and governance platforms. The global appeal of India’s DPI was evident at the G20 Summit, where several countries expressed interest in adopting similar frameworks. Japan’s patent grant to India’s UPI payment system further underscores its scalability.
For Mahakumbh 2025, AI-driven DPI solutions played a crucial role in managing the world’s largest human gathering. AI-powered tools monitored real-time railway passenger movement to optimise crowd dispersal in Prayagraj. The Bhashini-powered Kumbh Sah’AI’yak Chatbot enabled voice-based lost-and-found services, real-time translation, and multilingual assistance. Its integration with Indian Railways and UP Police streamlined communication, ensuring swift issue resolution. By leveraging AI with DPI, Mahakumbh 2025 set a global benchmark for tech-enabled, inclusive, and efficient event management.
AI Talent & Workforce Development
India’s workforce is at the heart of its digital revolution. The country is adding one Global Capability Center (GCC) every week, reinforcing its status as a preferred destination for global R&D and technological development. However, sustaining this growth will require continuous investment in education and skill development. The government is addressing this challenge by revamping university curricula to include AI, 5G, and semiconductor design, aligning with the National Education Policy (NEP) 2020. This ensures that graduates acquire job-ready skills, reducing the transition time between education and employment.
AI Talent Pipeline & AI Education: As part of the IndiaAI Future Skills initiative, AI education is being systematically expanded at the undergraduate, postgraduate, and Ph.D. levels to build a strong AI workforce. The government is providing fellowships for full-time Ph.D. scholars conducting AI research in the top 50 NIRF-ranked institutes, ensuring high-quality research output. To make AI education more accessible beyond metropolitan cities, Data and AI Labs are being established in Tier 2 and Tier 3 cities, bringing world-class AI learning opportunities to a broader population. A model IndiaAI Data Lab has already been set up at NIELIT Delhi, setting a precedent for future expansions.
India Ranks 1st in Global AI Skill Penetration: India has taken the top spot globally in AI skill penetration, according to the Stanford AI Index 2024. With a score of 2.8, India is ahead of major AI hubs like the US (2.2) and Germany (1.9). The concentration of AI talent in India has surged by 263% since 2016, establishing the country as a leading player in AI workforce development. Significantly, India also leads in AI skill penetration for women, with a score of 1.7, outperforming the US (1.2) and Israel (0.9). This highlights India’s inclusive approach to AI education and workforce development.
AI Innovation: India’s Growing Influence – India has emerged as the fastest-growing developer population in the world and currently ranks second in public generative AI projects on GitHub. This demonstrates India’s increasing global footprint in AI research and open-source AI development. The country is home to 16% of the world’s AI talent, further reinforcing its role as a key hub for AI innovation, adoption, and knowledge creation.
AI Talent Hubs: India’s Workforce Growth & Future Projections – According to the India Skills Report 2024 by Wheebox, India’s AI industry is projected to reach USD 28.8 billion by 2025, with an impressive compound annual growth rate (CAGR) of 45%. The AI-skilled workforce in India has increased 14-fold from 2016 to 2023, making the country one of the top five fastest-growing AI talent hubs globally, alongside Singapore, Finland, Ireland, and Canada. Additionally, the demand for AI professionals in India is expected to reach 1 million by 2026, reflecting the increasing need for AI expertise across industries.
AI Adoption & Industry Growth
India’s Generative AI (GenAI) ecosystem has seen remarkable growth, even amid a global downturn. The country’s AI landscape is evolving from experimental use cases to scalable, production-ready solutions, reflecting its growing maturity.
Businesses Prioritising AI Investments:
Indian companies are increasingly recognizing AI as a core strategic priority, with 80% of businesses considering AI essential, according to Boston Consulting Group (BCG). This figure surpasses the global average of 75%, indicating India’s strong commitment to AI-led digital transformation. Furthermore, 69% of Indian businesses plan to increase their tech investments in 2025, with one-third allocating over USD 25 million specifically for AI-driven projects. This surge in investment highlights AI’s critical role in enhancing business efficiency, innovation, and competitiveness.
GenAI Startup Funding Boom
India’s Generative AI (GenAI) startup ecosystem is experiencing rapid growth, as reflected in the November 2024 report by NASSCOM. The report highlights that funding for Indian GenAI startups surged over six times quarter-on-quarter, reaching USD 51 million in Q2FY2025. This significant rise has been driven by B2B-focused and agentic AI startups, which are leveraging AI for enterprise automation, customer engagement, and content generation. The strong investment momentum underscores the growing confidence in India’s AI startup ecosystem.
AI Transforming Workplaces
The integration of AI into workplaces is accelerating, with seven in 10 Indian employees using AI at work in 2024, as per the Randstad AI & Equity Report 2024. This marks a sharp increase from five in 10 employees in 2023, reflecting the rapid adoption of AI tools for productivity enhancement, automation, and decision-making. AI-powered solutions are being increasingly used across sectors such as IT, finance, healthcare, and customer service, revolutionizing traditional workflows and improving operational efficiency.
AI Empowering Small & Medium Businesses (SMBs)
AI-driven technologies, such as autonomous agents and intelligent automation, are playing a crucial role in helping Small and Medium Businesses (SMBs) scale operations, personalize customer experiences, and optimize workflows. According to Salesforce, 78% of Indian SMBs using AI have reported revenue growth, while an impressive 93% stated that AI has directly contributed to increased revenues. This indicates that AI adoption is not just a trend among large enterprises but is also a game-changer for smaller businesses, enabling them to compete more effectively in the digital economy.
Rapid Expansion of India’s AI Economy
India’s AI market is projected to grow at a CAGR of 25-35%, as per the BCG-NASSCOM Report 2024, reinforcing the nation’s potential as a global AI innovation hub. While AI is automating routine tasks, it is simultaneously creating new job opportunities in data science, machine learning, and AI-driven application development. The rapid expansion of India’s AI economy signals a transformational shift in employment trends, where AI is not just replacing jobs but also enabling the creation of highly skilled roles in emerging domains.
AI Startup Support Ecosystem
India has established itself as a global leader in AI startup incubation and acceleration, hosting over 520+ tech incubators and accelerators, making it the third-largest startup support ecosystem in the world. Notably, 42% of these incubators have been established in the past five years, catering specifically to the evolving needs of Indian startups. AI-focused accelerators, such as T-Hub MATH, are providing critical mentorship in areas like product development, business strategy, and scaling AI solutions. In early 2024, MATH supported over 60 AI startups, with five actively discussing funding opportunities, showcasing the increasing investor confidence in India’s AI-driven innovation landscape.
India’s AI landscape is undergoing a transformational shift, with businesses, startups, and SMBs rapidly integrating AI into their operations. The rising investment in AI, the exponential growth of GenAI startups, and the proliferation of AI-powered solutions in workplaces and SMBs highlight India’s evolving role as a global AI powerhouse. With robust government support, increasing funding, and a strong startup incubation ecosystem, India is well on its way to becoming a leader in AI innovation, talent development, and enterprise AI adoption.
A Pragmatic AI Regulation Approach
India’s pragmatic AI regulation balances innovation and accountability, steering clear of overregulation that could stifle growth and unchecked market-driven governance that may create monopolies. Instead of relying solely on legislation, India is investing in AI-driven safeguards, funding top universities and IITs to develop solutions for deep fakes, privacy risks, and cybersecurity threats. This techno-legal approach ensures AI remains a force for inclusive growth, fostering an ecosystem where innovation thrives while ethical concerns are proactively addressed.
India’s rapid advancements in artificial intelligence, underpinned by strategic government initiatives, have positioned the country as a global AI powerhouse. By expanding AI compute infrastructure, fostering indigenous AI models, enhancing digital public infrastructure, and investing in talent development, India is creating an inclusive and innovation-driven ecosystem. The emphasis on open data, affordable access to high-performance computing, and AI-driven solutions tailored to local needs ensures that the benefits of AI reach businesses, researchers, and citizens alike. As AI adoption accelerates across industries, India’s proactive approach is not only strengthening its digital economy but also paving the way for self-reliance in critical technologies. With a clear vision for the future, India is set to become a leader in AI innovation, shaping the global AI landscape in the years to come.
Source: Ministry of Electronics and Information Technology
