Team TrickyScribe: Under PM Narendra Modi, India is experiencing a transformative surge in artificial intelligence (AI) research and development.
Indian government has taken groundbreaking steps to democratize AI access, ensuring that computing power, GPUs, and research opportunities are available at an affordable cost. This marks a significant shift from a landscape previously dominated by global tech giants to one where Indian students, startups, and innovators have access to world-class AI infrastructure.
IndiaAI Mission: A Bold Leap Forward
In a historic move, the Modi government approved the IndiaAI Mission in 2024, allocating ₹10,300 crore over five years to strengthen India’s AI ecosystem. This initiative provides high-end computing facilities, enabling the development of indigenous AI solutions tailored to the Indian context and languages. A key highlight is the establishment of a common compute facility starting with 10,000 GPUs, which will soon be expanded to 18,693 GPUs, a scale nearly two-thirds of what powers ChatGPT.
India’s GPU Revolution: A Global First
One of the most significant achievements under Modi’s leadership is the opening of India’s first GPU marketplace. Unlike major economies where AI infrastructure is controlled by large corporations, India is making 18,000 high-end GPU-based compute facilities accessible to startups, researchers, and students at a fraction of the global cost. While international GPU access costs around $2.5-$3 per hour, India will offer the same at just $1 per hour, leveling the playing field for innovators.
Additionally, the government has identified 10 companies to supply 18,693 GPUs and is actively working towards developing India’s own Graphics Processing Unit (GPU) within the next three to five years. A domestic foundational AI platform is also expected within 10 months.
IndiaAI Dataset Platform: Unlocking Data for Innovation
Recognizing that data is the backbone of AI, the Modi government has launched the IndiaAI Dataset Platform, designed to provide open, high-quality, and anonymized datasets to Indian startups and researchers. This initiative ensures that AI development in India is fueled by diverse and extensive data sources, accelerating the creation of cutting-edge AI applications.
Centers of Excellence: Driving Sectoral AI Growth
To further solidify India’s position as a global AI leader, the government is investing in specialized AI Centers of Excellence (CoEs):
• Three CoEs were launched, focusing on Healthcare, Agriculture, and Sustainable Cities.
• Announced a fourth CoE dedicated to AI in Education, with a budget of ₹500 crore.
• Five National Centers of Excellence for Skilling, in collaboration with global partners, to equip youth with AI expertise.
India’s Foundational AI Models: A Game-Changer
India is not just using AI; it is building indigenous AI models that cater specifically to its linguistic and cultural diversity. Key initiatives include:
• Digital India BHASHINI: AI-powered language translation platform enabling digital services in multiple Indian languages.
• BharatGen: The world’s first government-funded multimodal Large Language Model (LLM), launched in 2024 to enhance public service delivery.
• Sarvam-1 AI Model: A 2-billion-parameter LLM optimized for 10 major Indian languages, making AI more accessible across the country.
• Chitralekha: An open-source video transcreation platform allowing seamless audio transcript generation in Indic languages.
• Hanooman’s Everest 1.0: A multilingual AI system supporting 35 languages, set to expand to 90 soon.
India’s AI Talent Boom: Leading the World
India ranks first in the world for AI skill penetration, as per the Stanford AI Index 2024, surpassing the US and Germany. With a 263% growth in AI talent concentration since 2016, India is cementing its position as a powerhouse in AI research and development.
Additionally, India leads in AI skill penetration for women, ahead of the US and Israel, reflecting the government’s efforts toward gender inclusion in AI-driven careers.
Expanding AI Education Beyond Metro Cities
Under the IndiaAI Future Skills initiative, AI courses are being integrated into undergraduate, postgraduate, and Ph.D. programs. The government is setting up Data and AI Labs in Tier 2 and Tier 3 cities, ensuring AI education reaches a broader demographic. The first such lab has already been established at NIELIT, Delhi.
India’s AI Innovation Boom: A Global Force
According to the India Skills Report 2024, India’s AI industry is projected to reach $28.8 billion by 2025, growing at a 45% CAGR. The country is among the top five fastest-growing AI talent hubs, alongside Singapore, Finland, Ireland, and Canada. By 2026, the demand for AI professionals in India is expected to reach 1 million.
Generative AI Ecosystem Flourishing
Despite a global downturn, India’s Generative AI sector has witnessed remarkable growth. According to NASSCOM, Indian GenAI startups secured $51 million in Q2 FY2025, reflecting a sixfold rise quarter-on-quarter.
AI Adoption Leading the World
India has the highest AI adoption rate globally, with 80% of companies considering AI a core strategic priority, exceeding the global average of 75%. A BCG report revealed that 69% of Indian companies plan to increase tech investments in 2025, with one-third allocating over $25 million to AI initiatives.
Additionally, the Randstad AI & Equity Report 2024 highlighted that 70% of Indian employees now use AI-powered tools, up from 50% in 2023.
AI Market Growth: Unlocking New Opportunities
According to the BCG-NASSCOM Report 2024, India’s AI market is projected to grow at a CAGR of 25-35%, generating new job opportunities in data science, machine learning, and AI-driven applications.
Building a Strong AI Startup Ecosystem
India is home to 520+ tech incubators and accelerators, making it the third-largest globally. 42% of these programs were established in the past five years, reflecting strong government support for AI entrepreneurship.
Accelerators like T-Hub MATH are nurturing AI startups, with 60+ startups currently under their wing and several in advanced funding discussions.
India’s AI Future: A Global Leader in the Making
Under PM Modi’s leadership, India has positioned itself at the forefront of the global AI revolution, democratizing access to computing power, data, and AI education. With pioneering initiatives like the IndiaAI Mission, BharatGen, Sarvam-1, and IndiaAI Dataset Platform, India is not just participating in AI innovation—it is leading it.
As AI continues to reshape industries worldwide, India’s bold investments, policy initiatives, and inclusive approach ensure that the country remains a powerhouse of AI research, development, and talent in the years to come.
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