India stands on the threshold of a new era driven by Artificial Intelligence (AI), where technology is transforming lives and shaping national progress. AI is no longer confined to research laboratories or large corporations—it is reaching citizens at every level. From improving access to healthcare in remote regions to helping farmers make informed crop decisions, AI is making daily life simpler, smarter, and more connected.
AI is revolutionising classrooms through personalised learning, making cities cleaner and safer, and strengthening public services through faster, data-driven governance. Initiatives such as the IndiaAI Mission and AI Centres of Excellence are at the heart of this transformation. They are expanding access to computing power, supporting research, and enabling startups and institutions to build solutions that directly benefit citizens.
India’s approach focuses on keeping AI open, affordable, and accessible, ensuring innovation uplifts society as a whole.
What is Artificial Intelligence?
Artificial Intelligence refers to the ability of machines to perform tasks that typically require human intelligence. AI systems can learn from experience, adapt to new situations, and solve complex problems independently. By using datasets, algorithms, and large language models, AI analyses information, identifies patterns, and generates responses. Over time, these systems improve their performance, enabling them to reason, decide, and interact in increasingly human-like ways.
This inclusive vision is also reflected in NITI Aayog’s report “AI for Inclusive Social Development” (October 2025), which highlights how AI can empower India’s 490 million informal workers by improving access to healthcare, education, skill development, and financial inclusion.
India’s Current AI Ecosystem
India’s technology sector is projected to exceed USD 280 billion in annual revenue this year.
Over 6 million people work across the technology and AI ecosystem.
The country hosts 1,800+ Global Capability Centres, with 500+ focused on AI.
India has around 180,000 startups, and nearly 89% of new startups launched last year used AI in their products or services.
On the NASSCOM AI Adoption Index, India scored 2.45 out of 4, indicating 87% of enterprises actively use AI solutions.
Leading sectors in AI adoption include industrial and automotive, consumer goods and retail, BFSI, and healthcare, collectively contributing around 60% of AI’s total value.
A recent BCG survey found that 26% of Indian companies have achieved large-scale AI maturity.
Globally, India ranks among the top four countries in AI skills, capabilities, and policy frameworks, and is the second-largest contributor to AI projects on GitHub, reflecting the strength of its developer community.
India: The World’s Third Most AI-Competitive Nation
According to Stanford University’s 2025 Global AI Vibrancy Tool, India ranks third globally in AI competitiveness. The assessment, covering the period from 2017 to 2024, highlights India’s rapid progress in AI talent, research capacity, startup vibrancy, investment, infrastructure, and policy and governance.
IndiaAI Mission
Guided by the vision of “Making AI in India and Making AI Work for India”, the Cabinet approved the IndiaAI Mission in March 2024 with a budget of ₹10,371.92 crore over five years.
From an initial target of 10,000 GPUs, India has now secured 38,000 GPUs, ensuring affordable access to world-class AI computing resources.
What is a GPU?
A Graphics Processing Unit (GPU) is a powerful chip that enables faster processing of images, AI programs, and complex computations compared to traditional processors.
Implemented by IndiaAI, an independent business division under the Ministry of Electronics and Information Technology, the mission is building a comprehensive ecosystem that promotes innovation, supports startups, strengthens data access, and ensures responsible AI use for public benefit.
Seven Pillars of the IndiaAI Mission
1. IndiaAI Compute
Provides high-end GPUs at subsidised rates—over 38,000 GPUs available at ₹65 per hour.
2. IndiaAI Application Development Initiative
Focuses on AI applications tailored to India’s challenges in healthcare, agriculture, climate change, governance, and assistive education. By July 2025, 30 applications had been approved.
3. AIKosh (Dataset Platform)
A national platform with 5,500+ datasets across 20 sectors and 251 AI models, enabling developers to focus on solutions rather than infrastructure. By December 2025, the platform recorded 385,000+ visits, 11,000 registered users, and 26,000 downloads.
4. IndiaAI Foundation Models
Develops India’s own large multimodal models using Indian data and languages. Twelve startups and consortia have been selected, including Sarvam AI, BharatGen (IIT Bombay Consortium), Fractal Analytics, and Tech Mahindra Makers Lab.
5. IndiaAI Future Skills
Supports 500 PhD scholars, 5,000 postgraduates, and 8,000 undergraduates. AI and data labs are being set up in Tier 2 and Tier 3 cities, with 31 labs already launched in collaboration with NIELIT and industry partners.
6. IndiaAI Startup Financing
Provides financial support to AI startups. The IndiaAI Startups Global Programme, launched in March 2025, supports Indian startups in expanding to European markets.
7. Safe and Trusted AI
Ensures responsible AI adoption through governance frameworks. Thirteen projects have been initiated covering areas such as bias mitigation, privacy-preserving machine learning, explainability, and AI auditing.
