Prime Highlights
- AI leaders are urging the government to increase funding beyond the current ₹10,300 crore allocationto enable larger, more ambitious projects.
- Abhishek Singh, CEO of IndiaAI Mission, said the government will focus on creating an enabling environment and incentives, rather than directly buying hardware.
Key Facts
- So far, only ₹1,000 crore has been utilized, while private firms like Yotta, E2E Networks, and Jio have already invested ₹20,000 crore to add 38,000 GPUs.
- The IndiaAI Mission is seen as a foundation for a $10 billion AI ecosystem, supporting foundational models, LLMs, and sector-specific AI governance.
Background
AI infrastructure providers and deeptech players have urged the Indian government to double the funding for the IndiaAI Mission, aiming to widen its scope and back more ambitious projects. Sources said the additional investment will help bring more Graphics Processing Units (GPUs) into the system and expand support for startups working on foundational and language models.
The IndiaAI Mission began with a Rs 10,300 crore budget up to 2029. It is now seen as a key driver to attract large private investments, not as an end goal. Abhishek Singh, the CEO of the IndiaAI Mission, said that the government will be preparing the environment to allow companies to invest by providing incentives instead of buying hardware itself.
So far, the government has used only about Rs 1,000 crore. Meanwhile, private companies like Yotta, E2E Networks, and Jio have invested heavily in building data centres and adding over 38,000 GPUs worth Rs 20,000 crore.
Global tech giants such as Microsoft, Google, OpenAI, and IBM have also shown strong interest in the Indian market, which is growing fast. The IndiaAI Mission supports the development of Large Language Models, Large Reasoning Models, and Small Language Models, helping India reduce its reliance on foreign AI technologies.
To encourage innovation, the government plans to let sector regulators take charge of AI governance. For example, the health ministry will regulate healthcare-related AI applications.
Abhishek Singh stressed that the Rs 10,300 crore allocation is just the starting point. More funds will be added over time as needed. The government sees the mission as a foundation for a much bigger AI ecosystem, expecting total investments to cross $10 billion soon.
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