India aims to attract more than $200 billion in investment in artificial intelligence infrastructure by 2028, positioning itself as a global hub for AI computing and applications.
According to industry reports, the plan was outlined by India’s IT minister Ashwini Vaishnaw during the government-backed AI Impact Summit in New Delhi. The five-day event drew senior executives from major technology companies, including OpenAI, Google and Anthropic.
Most of the expected investment will be directed toward AI infrastructure, including data centres and semiconductor systems.
This amount includes about $70 billion that major US tech companies, such as Amazon, Google, and Microsoft, have already committed to improving AI and cloud infrastructure in India.
In addition to infrastructure, the government expects around $17 billion in fresh investment into deep-tech startups and AI-driven applications.
$1.1B government-supported venture program
To support the push, New Delhi is offering tax incentives, state-backed venture capital, and regulatory support to attract a larger share of the global AI supply chain.
A ₹100 billion (about $1.1 billion) government-supported venture program has been introduced to back high-risk sectors such as AI and advanced manufacturing. The government has also extended the startup eligibility period for deep-tech firms to 20 years and increased the revenue threshold for startup benefits to ₹3 billion (around $33 million).
“We have seen VCs committing funds for dtech startups. We have seen VCs and other players committing funds to big solutions and big applications. We have seen VCs committing funds for further research in cutting-edge models,” Vaishnaw said at a press briefing on the sidelines of the summit.
India also plans to expand its shared computing capacity under the IndiaAI Mission. The country currently has access to about 38,000 GPUs and intends to add another 20,000 units in the coming weeks.
Vaishnaw said the next phase of the AI Mission will focus more strongly on research and development, innovation and broader access to AI tools, alongside continued expansion of computing capacity.
However, the strategy faces practical challenges. Large-scale data centres require significant amounts of electricity and water, and infrastructure constraints could slow deployment.
Vaishnaw acknowledged these pressures, pointing to India’s growing clean energy capacity, which accounts for more than half of installed power generation, as a potential advantage as demand increases.
