India is poised to attract nearly ₹16.6 lakh crore (about $200 billion) in investments in the artificial intelligence (AI) sector over the next two years, with capital expected across all layers of the AI stack— infrastructure, compute, data, applications and talent—strengthening the country’s long-term technology ecosystem.
Policy focus is not limited to funding alone. The government is also emphasising the responsible and safe deployment of AI, aiming to maximise socio-economic benefits while mitigating risks such as bias, misuse and data vulnerabilities.
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Strong interest in infrastructure and energy
Large-scale investments are anticipated in AI infrastructure, particularly in data centres, high-performance computing and chip-linked resources. The energy sector is emerging as a critical enabler, given the power-intensive nature of AI compute clusters.
India’s advantage lies in its power mix, with roughly 51% of installed capacity coming from clean sources, positioning the country to build green data centres and low-carbon AI infrastructure.
Push for global consensus on responsible AI
Policymakers believe that ethical and accountable AI governance must evolve alongside technological growth. India is working towards multilateral cooperation and global standards to ensure AI is used for economic development, healthcare, education and governance, while curbing harmful applications.
Three-tier talent strategy
To manage the AI transition, the government is working with industry and academia on three fronts:
1. Reskilling and upskilling the existing workforce
2. Creating a pipeline of new AI talent
3. Preparing future generations to be AI-ready
Skill development programmes launched earlier are being expanded to align with the growing demand in the IT and digital sectors.
AI Mission 2.0 to expand compute access
The upcoming AI Mission 2.0 will focus on research, innovation and shared computing infrastructure. Plans include adding over 20,000 GPUs to the current base of around 38,000 GPUs, enabling startups, research institutions and smaller enterprises to access advanced AI compute.
The model aims to democratise computing power rather than concentrating it within a few large firms.
India’s ambition to become a global AI hub
With large investments, clean energy capacity, vast digital data resources, a strong IT services base and structured skill programmes, India is positioning itself as a global centre for AI development and deployment.
If these investments and policy measures materialise as planned, AI is expected to emerge as a key driver of economic growth, employment and industrial productivity in the coming years.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
