India's AI strategy is based on the Hon'ble Prime Minister's vision to democratize the use of technology. It aims to address India centric challenges and create economic and employment opportunities for all Indians.

The Government is cognizant of the risks associated with limited domestic capabilities in semiconductor manufacturing, computing infrastructure, foundational models and advanced research ecosystems, and has adopted a multi pronged and calibrated approach under the IndiaAI and India Semiconductor Missions to build technological sovereignty across the AI value chain.

IndiaAI Mission

The Government approved the IndiaAI Mission on 7^th March 2024 with a total outlay of Rs. 10,371.92 crore over five years. It establishes a robust and inclusive AI ecosystem aligned with India's development goals.

Sovereign Models:

Pursuant to the Call for Proposals issued on 30 January 2025, against 506 applications received, 20 indigenous foundation model proposals, comprising 12 Large Multimodal Models and 8 Small Language Models, have been identified for support, with intellectual property retained by the applicants. Notable outputs already launched include:

●     Sarvam AI's 30 billion and 105 billion parameter models, and Indus

●     Gnani.AI's speech-to-speech model

●     BharatGen's multilingual foundation models (Param2-17B, Patram-7B and Shrutam-2)

●     Avataar AI's video generation model

Compute:

●    15 Compute Service Providers have been empaneled over four rounds.

●   237 projects have been approved for subsidized compute support, with 93.18 lakh GPU hours sanctioned.

●  A Purchase Order has been issued for a High-Performance AI Compute System of approximately 1.1 EFLOPS at the NIC Data Centre, Shastri Park, Delhi.

Application Development:

●    11 National-level Hackathons/Innovation Challenges launched.

●    62 AI prototypes developed and 20 AI solutions deployed across public-sector institutions.

Center of Excellence:

●  58 AI Centres of Excellence have been approved for establishment across States and Union Territories, of which 22 have been approved and initiated across 13 States/UTs to date.

Safe & Trusted AI:

●  13 projects addressing bias mitigation, machine unlearning, privacy preserving AI, algorithm auditing and explainability have been selected.

National Mission on Interdisciplinary Cyber-Physical Systems:

The Department of Science & Technology is implementing the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS), approved by the Union Cabinet with an outlay of Rs. 3,660 crore. Under this Mission:

●   25 Technology Innovation Hubs (TIHs) have been established at academic institutions across the country, each specialising in domains including AI & Machine Learning, Robotics, IoT & Internet of Everything (IoE), Cybersecurity, Mining, Quantum Technologies and FinTech.

●    The TIHs undertake technology development and translational research towards prototypes and products in Cyber-Physical Systems.

●    Human resource and skill development is carried out through fellowship-supported UG/PG, PhD and post-doctoral programmes, faculty development programmes and short-term training courses.

●    Innovation, entrepreneurship and deep-tech startups are supported through funding, incubation and mentoring, along with technology transfer to Government organisations and industry.

Strengthening Domestic Semiconductor Manufacturing

Inspired by the Hon'ble Prime Minister's vision of AtmaNirbhar Bharat and making India a global electronics manufacturing hub, the Government adopted structured and targeted policy initiatives for the development of electronics manufacturing across the entire value chain including semiconductors.

The semiconductor industry is a foundational industry. All sectors of the economy such as industrial, consumer, defence, telecommunication and automotive etc depend on semiconductors. This sector offers transformative advantages by driving technological innovation, economic growth, and strategic self-reliance.

Recognising the strategic importance of semiconductors for the overall economy and national security, the Government launched the Semicon India Programme in January 2022 for setting up of semiconductor fabs, display fabs, semiconductor packaging and also for promotion of Indian designed chips. So far, 12 manufacturing projects have been approved under this programme for a total committed investment of Rs. 1.64 lakh crore, of which 3 projects have already started commercial production.

Building on the success of this programme, the Union Cabinet approved Semicon 2.0 on 15^th July 2026 with an outlay of Rs. 1,27,500 crore. Semicon 2.0 aims to accelerate design and development of Indian designed chips, expand semiconductor fabrication units (fabs) and advanced packaging, and support wider semiconductor ecosystem development, including materials, gases and equipment needed for semiconductor manufacturing.

International Cooperation

India joined the Pax Silica coalition at the India AI Impact Summit 2026, along with the United States and other partner nations, to secure the global silicon supply chain and strengthen a resilient technology ecosystem.

These efforts reflect the Government's focused approach to building a self reliant, inclusive and globally competitive AI ecosystem.

Assessment of India's Standing on AI Infrastructure and Self-Reliance

As per the Stanford Global AI Vibrancy Report published in November 2025, India is ranked 3^rd globally in AI competitiveness and ecosystem vibrancy, and is the second largest contributor to GitHub AI projects, reflecting a vibrant developer community.

India's compute ecosystem currently draws on globally sourced GPUs procured through empaneled Compute Service Providers, consistent with prevailing international supply chains for AI hardware. Steps taken to reduce this dependence over time include the High-Performance AI Compute System taken up for establishment at the NIC Data Centre, Shastri Park, Delhi.

This information was submitted by Union Minister of State for Electronics and Information Technology Shri Jitin Prasada in Lok Sabha on 05.08.2026.

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Vinod Kumar / Kanishk Sharma

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