In a landmark decision that could redefine India’s digital future, the Union Cabinet on Friday approved an allocation of ₹21,000 crore for building state-of-the-art artificial intelligence (AI) compute infrastructure across the country.
The move marks one of the biggest investments in frontier technologies by the government so far, signaling India’s ambition to emerge as a global hub for AI development and innovation.
According to senior officials, the funds will be utilized to set up high-performance computing systems, create large-scale data centers, and support AI-focused research hubs. The aim is to ensure that Indian startups, researchers, and entrepreneurs get access to affordable world-class compute capacity—something until now limited to a handful of global tech giants.
“This is not just an investment in technology, but in the future of our youth and industries,” said a government source familiar with the Cabinet deliberations. “Our AI mission is designed to empower innovation in areas like healthcare, agriculture, education, and national security.”
Experts believe this could be a game-changer for India’s AI ecosystem. Currently, Indian startups often face prohibitive costs when accessing advanced AI compute infrastructure, forcing them to rely on foreign platforms. With this initiative, the government plans to democratize access and foster an indigenous AI-driven economy.
The mission also envisages major public-private partnerships, with industry leaders expected to play a critical role in scaling up adoption and applications of AI. Additionally, centers of excellence for AI skilling are likely to be set up in collaboration with leading academic institutions.
Policy analysts point out that this step comes at a crucial time, as nations worldwide are racing to strengthen their AI capabilities. By committing such a significant sum, India is sending a strong signal that it intends not just to use AI but to lead in building and deploying it responsibly.
The first phase of the project is expected to roll out within the next 18 months, with compute capacity being made available on a pay-per-use basis for startups and researchers.
“In many ways, this decision will help level the playing field for Indian innovators,” said Dr. Kavita Rao, an AI policy expert. “Affordable compute power is the missing link, and once that is addressed, we could see a new wave of AI-led breakthroughs originating from India.”
With the Cabinet’s green light, India stands at the cusp of a technological transformation—one that could accelerate its journey from being a global back office to becoming a global AI powerhouse.
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