India is setting its sights on attracting over $200 billion in artificial intelligence (AI) investment by 2028, with ambitions to become a major global hub for AI computing and applications. This bold initiative was announced by Ashwini Vaishnaw, India’s Minister of Information Technology, during the AI Impact Summit held in New Delhi. The five-day summit featured senior executives from leading technology firms, including OpenAI, Google, and Anthropic.
The majority of the anticipated investment will focus on developing AI infrastructure, such as data centers and semiconductor systems. Notably, approximately $70 billion has already been pledged by major U.S. tech companies, including Amazon, Google, and Microsoft, to enhance AI and cloud infrastructure in India. In addition to infrastructure improvements, the Indian government expects around $17 billion in new investments specifically aimed at deep-tech startups and AI-driven applications.
Government Initiatives and Financial Support
To facilitate this ambitious plan, the Indian government is introducing a series of incentives, including tax breaks, state-backed venture capital, and regulatory support. A new venture program, valued at ₹100 billion (approximately $1.1 billion), is designed to support high-risk sectors, particularly in AI and advanced manufacturing. Furthermore, the eligibility period for startups in deep-tech sectors has been extended to 20 years, and the revenue threshold for accessing startup benefits has been raised to ₹3 billion (around $33 million).
Vaishnaw expressed optimism about the growing interest from venture capitalists (VCs), stating, “We have seen VCs committing funds for deep-tech startups. We have seen VCs and other players committing funds to big solutions and big applications. We have seen VCs committing funds for further research in cutting-edge models.” This influx of investment is expected to bolster innovation within the AI sector.
In addition to financial incentives, India is also expanding its shared computing capacity under the IndiaAI Mission. Currently, the country has access to approximately 38,000 GPUs and plans to add another 20,000 units in the coming weeks. Vaishnaw noted that the next phase of the AI Mission will emphasize research and development, innovation, and broader access to AI tools, while continuing to enhance computing capacity.
Infrastructure Challenges and Clean Energy Potential
Despite these ambitious plans, the strategy faces significant practical challenges. Large-scale data centers necessitate substantial amounts of electricity and water, and existing infrastructure constraints may impede rapid deployment. Vaishnaw acknowledged these challenges but highlighted India’s growing clean energy capacity, which currently accounts for over half of the country’s installed power generation, as a potential advantage in meeting increasing demand.
The developments from the AI Impact Summit underscore India’s commitment to establishing itself as a leader in the global AI landscape. With substantial investments and government support, the country is positioning itself to take advantage of the burgeoning AI market in the coming years. As the initiative progresses, it will be crucial to navigate potential infrastructure hurdles while capitalizing on the nation’s expanding clean energy resources.
