India’s AI Revolution Under Modi’s Leadership
India is undergoing a remarkable transformation in artificial intelligence (AI), driven by Prime Minister Narendra Modi’s vision. For the first time, the government is actively shaping India’s AI Revolution, an AI ecosystem that provides affordable access to computing power, GPUs, and research opportunities.
Unlike in the past, AI is no longer limited to a privileged few or dominated by global tech giants. The Modi government’s forward-looking policies are empowering students, startups, and innovators with world-class AI infrastructure, creating a level playing field. Initiatives such as the IndiaAI Mission and Centres of Excellence (CoE) are strengthening the AI ecosystem, driving innovation, and fostering self-reliance.
These efforts align with the vision of Viksit Bharat 2047, which aims to position India as a global AI powerhouse, leveraging advanced technology for economic growth, governance, and societal progress.
Expanding AI Compute and Semiconductor Infrastructure
India is rapidly building a robust AI computing and semiconductor ecosystem to support its growing digital economy. The IndiaAI Mission, approved in 2024, allocated ₹10,300 crore over five years to enhance AI capabilities. A key initiative under this mission is the development of a high-end computing facility with 18,693 GPUs, making it one of the most extensive AI infrastructures globally.
Key Developments in AI Compute Infrastructure
- Scaling AI Compute Access: The first phase of the mission has deployed 10,000 GPUs, with the remaining units to be added soon. This will enable the development of AI solutions tailored to Indian languages and contexts.
- Open GPU Marketplace: India has launched an open GPU marketplace, making high-performance computing accessible to startups, researchers, and students. Unlike in many other countries, where AI infrastructure is controlled by large corporations, this initiative ensures equal access to AI resources.
- Strengthening GPU Supply Chain: The government has selected 10 companies to supply GPUs, ensuring a stable and diverse supply chain.
- Indigenous GPU Development: To reduce reliance on imported technology, India plans to develop its own GPU within the next three to five years.
- Affordable Compute Access: A common compute facility will soon offer GPU access at a subsidised rate of ₹100 per hour, compared to the global cost of $2.5 to $3 per hour.
- Boosting Semiconductor Manufacturing: India is also advancing its semiconductor sector, with five semiconductor plants under construction. These developments will not only support AI growth but also reinforce India’s position in the global electronics industry.
Open Data and Centres of Excellence for AI
Recognising the importance of data in AI development, the government has launched the IndiaAI Dataset Platform to provide seamless access to high-quality, non-personal datasets. This initiative will help Indian startups and researchers develop advanced AI applications.
Key AI Data and Research Initiatives
- IndiaAI Dataset Platform: This platform will house large-scale, anonymised datasets, reducing barriers for AI innovation.
- Enhancing AI Accuracy: By providing diverse datasets, the initiative will help reduce biases and improve the reliability of AI applications in sectors such as agriculture, weather forecasting, and traffic management.
- Centres of Excellence (CoE): India has established three AI CoEs in Healthcare, Agriculture, and Sustainable Cities in New Delhi. A fourth CoE in Education was announced in Budget 2025, with an allocation of ₹500 crore.
- AI Skilling Centres: Five National Centres of Excellence for Skilling will equip youth with AI expertise, supporting the ‘Make for India, Make for the World’ vision.
India’s AI Revolution: AI Models and Language Technologies
India is developing its own foundational AI models, including Large Language Models (LLMs) and specialised AI solutions tailored to local needs.
Notable AI Model Initiatives
- India’s Foundational AI Models: The IndiaAI initiative is supporting the development of indigenous LLMs and Small Language Models (SLMs).
- Digital India BHASHINI: An AI-powered language translation platform enabling internet and digital service access in Indian languages.
- BharatGen: The world’s first government-funded multimodal LLM, launched in 2024, aims to enhance public service delivery and citizen engagement.
- Sarvam-1 AI Model: A large language model with 2 billion parameters, supporting 10 Indian languages for translation, summarisation, and content generation.
- Chitralekha: An open-source video transcreation platform developed by AI4Bhārat for generating and editing Indic language transcripts.
- Hanooman’s Everest 1.0: A multilingual AI system supporting 35 Indian languages, with plans to expand to 90 languages.
AI Integration with Digital Public Infrastructure
India’s Digital Public Infrastructure (DPI) has transformed digital innovation by combining public funding with private sector-led growth. Platforms like Aadhaar, UPI, and DigiLocker serve as foundations for AI-driven governance and financial services.
- At Mahakumbh 2025, AI-powered solutions monitored real-time passenger movement and optimised crowd dispersal.
- The Bhashini-powered Kumbh Sah’AI’yak Chatbot provided multilingual assistance and lost-and-found services.
- AI was integrated with Indian Railways and UP Police, streamlining crowd management and communication.
Developing AI Talent and Workforce
India is rapidly building its AI talent pool. The government is integrating AI into higher education curricula, ensuring graduates gain job-ready skills.
AI Workforce Growth
- IndiaAI Future Skills Initiative: AI education is being introduced across undergraduate, postgraduate, and PhD programs.
- Global AI Skill Penetration: According to the Stanford AI Index 2024, India ranks first in AI skill penetration, ahead of the US and Germany.
- AI Innovation and Research: India ranks second in public generative AI projects on GitHub and has the fastest-growing AI developer population globally.
- AI Job Market Growth: India’s AI industry is projected to reach USD 28.8 billion by 2025, with AI professionals expected to reach 1 million by 2026.
AI Adoption and Industry Growth
India’s Generative AI (GenAI) ecosystem is expanding rapidly, even amid global economic slowdowns.
- Businesses Prioritising AI: 80% of Indian companies consider AI a strategic priority, surpassing the global average of 75%.
- AI Startup Growth: GenAI startup funding surged sixfold, reaching USD 51 million in Q2 FY2025, driven by B2B and agentic AI startups.
- AI Transforming Workplaces: 70% of Indian employees used AI at work in 2024, up from 50% a year earlier.
- SMBs and AI Growth: 78% of SMBs using AI reported higher revenues, with 93% stating AI contributed to revenue increases.
A Balanced Approach to AI Regulation
India is taking a pragmatic approach to AI regulation, balancing innovation and accountability. Instead of overregulation, the government is investing in AI-driven safeguards, funding top universities and IITs to develop solutions for deep fakes, privacy risks, and cybersecurity threats.
The Road Ahead
India’s rapid advancements in AI, backed by strategic government initiatives, are positioning it as a global AI leader. By expanding AI compute infrastructure, fostering indigenous AI models, and investing in workforce development, India is creating an inclusive and innovation-driven AI ecosystem.
With a clear vision for self-reliance in critical technologies, India is set to become a key player in the global AI landscape, driving innovation and economic growth in the years to come.
With inputs from Reuters
