India is positioning itself to attract nearly ₹16.6 lakh crore ($200 billion) in investments into the artificial intelligence (AI) sector over the next two years, with the government outlining a comprehensive strategy across the entire AI stack. Union IT Minister Ashwini Vaishnaw said the expected inflows would span all five layers of the ecosystem — computing, data, models, applications and infrastructure — strengthening the country’s long-term technology base.
According to the minister, investor interest is strongest in infrastructure and energy, as large AI data centres and high-performance computing facilities require reliable and clean power. India’s 51% clean energy share in total generation capacity was highlighted as a key competitive advantage in attracting global AI investments.
The government believes AI will extend far beyond software, driving demand for data centres, advanced compute capacity, chip-grade infrastructure and green energy. As a result, capital is flowing across the entire value chain rather than being confined to application development.
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Push for global consensus on responsible AI
Vaishnaw said there is growing international convergence around the need for safe and responsible AI deployment, and India will actively participate in shaping global policy frameworks to ensure the technology benefits society while minimising risks.
The policy direction is anchored in a “technology for humanity” approach, with AI expected to be deployed in sectors such as healthcare, agriculture, education and governance.
Three-pronged talent strategy
To manage the transition to an AI-driven economy, the government has adopted a three-tier skilling plan:
- 1. Reskilling and upskilling the existing workforce
- 2. Building a new talent pipeline
- 3. Preparing students for future AI-led industries
These initiatives are being implemented in partnership with industry and academic institutions to ensure the availability of a large, trained AI workforce.
AI Mission 2.0 to expand compute capacity
The government is preparing to launch AI Mission 2.0, which will focus on research, innovation and shared computing infrastructure. Plans include expanding the current base of about 38,000 GPUs by adding more than 20,000 additional GPUs, enabling startups and research institutions to access high-end compute at affordable costs.
Officials said that while AI infrastructure in many countries is controlled by a few large corporations, India is pursuing a democratised model that allows startups, universities and developers to access national compute resources.
India aims to emerge as a global AI hub
With rising investments, clean energy availability, a strong IT talent pool and policy support, India is being positioned as a major global hub for AI development and deployment.
Experts believe timely execution of the proposed investment pipeline could generate large-scale employment and innovation across data centres, semiconductors, cloud, cybersecurity and AI applications.
Overall, the government’s objective is to move AI beyond a niche technology sector and establish it as a core driver of economic growth, digital public infrastructure and social development.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
