Govt. to Boost India AI Mission Outlay to Rs 20,000 Cr

The government has announced a significant increase in spending on the IndiaAI mission, raising the outlay to Rs 20,000 crore from the existing Rs 10,000 crore. Rajeev Chandrasekhar, Minister of State for Electronics and IT, revealed this development on Monday evening, citing the addition of certain components to the mission.

Chandrasekhar stated, “The mission approved by the Cabinet had an outlay of Rs 10,000 crore but the effective value will go up to Rs 20,000 crore on addition of some other things,” without disclosing specific details about the additional components.

The IndiaAI mission focuses on bringing AI compute capacity under the public-private partnership (PPP) mode through GPU-based servers, allocating early-stage funding to deeptech startups, establishing innovation centers, and developing broader AI sovereign infrastructure in the country.

A significant aspect of the mission involves creating compute infrastructure in the country, with the government expected to establish its own AI data centers. These data centers can then be leased to startups, facilitating their access to essential compute resources.

Under the IndiaAI Mission, the Ministry of Electronics and Information Technology (MeitY) has set a target to make at least 10,000 GPUs available by March 2026.

To support the requirement of GPUs and create compute capacity, the government may need additional funding outlay, especially for sourcing GPUs from companies like Nvidia.

Officials also revealed that the government aims to fund up to 50% of the cost of creating AI compute infrastructure in the country, considering GPUs’ essential role in creating AI models due to their large-scale computing capabilities.

Furthermore, the government is exploring approaches such as viability gap funding or a voucher-based mechanism to expedite the process of building AI compute infrastructure.

Chandrasekhar emphasized that the government’s focus in the upcoming years will span across various sectors, including electronics, telecom, high-performance computing, semiconductors, cybersecurity, automotive, and electric vehicles (EVs).

He added, “The digital economy in India today is growing at 2.8x the regular GDP… India will be a $1 trillion digital economy by 2027-28.”

For the government’s internal use of compute infrastructure, separate capacity will be established through initiatives like the National Supercomputing Mission, distinct from the GPU capacity under the IndiaAI mission.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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