India Accelerates AI Growth with Major Investments and Initiatives
India is rapidly emerging as a global leader in artificial intelligence (AI) and deep technologies, showcasing impressive advancements in academic research and private sector investment. According to the Stanford Global AI Vibrancy 2025 report, India ranked third in the world for AI competitiveness and ecosystem vibrancy. The nation is also the second-largest contributor to GitHub AI projects, reflecting its dynamic developer community.
Launching the IndiaAI Mission
In March 2024, the Indian government launched the ambitious IndiaAI mission with an allocation of ₹10,372 crore focused on enhancing the AI ecosystem. In just under two years, several significant developments have taken place:
- Over 38,000 GPUs have been provided to startups and academic institutions, facilitating affordable access to computational resources.
- Twelve teams have been selected to develop indigenous foundational and Large Language Models.
- Thirty applications tailored for India’s specific AI needs have received approval.
- Support has been extended to more than 8,000 undergraduate students, 5,000 postgraduate students, and 500 PhD candidates for talent development.
- Twenty-seven India Data and AI labs have been established, with an additional 543 identified for future setups.
India is positioning itself as a significant player in global discussions regarding the development, usage, and safety of AI. It was the founding chair of the Global Partnership on Artificial Intelligence (GPAI) and is set to host the India AI Impact Summit 2026 in New Delhi from February 16-20, 2026. This summit will mark the first global AI summit held in the Global South, signifying a shift towards a more inclusive dialogue in the AI sector.
Private Sector Investments Surge
Inspired by government initiatives, private sector investments in AI are also on the rise. The Stanford AI Index Report 2025 highlights that India’s cumulative private investment in AI from 2013 to 2024 has hit approximately $11.1 billion. Recently, Google announced the opening of an AI Hub in Visakhapatnam, Andhra Pradesh, as part of a massive $15 billion investment, making it the tech giant’s most significant investment in India so far. Additionally, Tata Group has unveiled plans for an $11 billion AI innovation city in Maharashtra.
During the IndiaAI Impact Summit 2026, a Research Symposium on “AI and its Impact” will be organized to bridge the gap between AI research and real-world applications, connecting researchers, policymakers, and practitioners.
Boosting the Space and Deep Tech Sectors
The Indian government is also making strides in the space and deep tech sectors, implementing numerous reforms and policy measures. The recently notified Indian Space Policy, 2023, clarifies roles for ISRO, IN-SPACe, and the industry, enabling more private sector participation. IN-SPACe operates as a single-window agency for authorizing non-government space activities, which include access to ISRO’s facilities.
A ₹1,000 crore venture capital fund has been established to support growth in the space sector, along with a ₹500 crore technology adoption fund aimed at enabling startups to commercialize space technologies and boost manufacturing capabilities. By liberalizing foreign direct investment (FDI) norms, the government is allowing up to 100% FDI in satellite manufacturing and enhancing limits for satellite operations.
Further strengthening the deep tech landscape, the government has introduced a National Deep Tech Startup Policy to tackle funding challenges, and a ₹1 lakh crore Research, Development and Innovation (RDI) Fund aimed at supporting high-impact projects and attracting private investment.
Commitment to Research and Development
The Economic Survey 2025-26 revealed that India’s Gross Expenditure on Research and Development (GERD) accounts for 0.64% of its GDP. The government’s efforts culminated in a significant rise in India’s ranking in the Global Innovation Index, jumping from 81st in 2015 to 38th in 2025. The establishment of the Anusandhan National Research Foundation (ANRF) is pivotal in guiding strategic directions and fostering collaborations across various sectors.
With initiatives like the National Quantum Mission and the IndiaAI Mission, the government is committed to enhancing foundational scientific capabilities while promoting scalable industrial applications. These concerted efforts position India solidly on the path to expanding its global technology footprint.
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