India Aims for $200 Billion AI Investment by 2028 with Open Tech Sharing

India plans to invest over $200 billion in AI infrastructure by 2028, a huge increase to boost technology sharing and development.
By Newsroom | Technology, India |

Prime Minister Narendra Modi has articulated India's stance on artificial intelligence (AI), emphasizing a belief in the open and transparent sharing of technology. This position is set against a backdrop where several nations increasingly view AI as a strategic asset, underscoring a potential divergence in global approaches to AI development and governance.

India's strategy for artificial intelligence is shaping up to be a significant factor in the global tech landscape. The nation is aiming to attract substantial investment in AI infrastructure, with a stated goal of over $200 billion by 2028. This push involves expanding compute capacity, fostering research and development, and promoting innovation. India's approach appears to lean towards a public-sector-led development model, integrating AI with national development priorities and aiming to address social challenges through technology. This contrasts with approaches in some developed nations where private sector innovation is the primary driver. India's vision includes democratizing AI resources, strengthening joint research, harmonizing safety and governance standards, and ensuring wider access to AI infrastructure and talent, particularly within the Global South. The country is also developing regulatory frameworks and emphasizes ethical and inclusive AI, positioning itself to lead global discourse on development-oriented AI cooperation and technological autonomy.

Read More: France President Macron wants stricter EU AI rules to protect kids under 15 from online harm

India's Ambitious AI Infrastructure Goals

The Indian government is actively working to build a robust AI infrastructure. This includes significant planned investments and the expansion of computing resources.

  • Investment Targets: India aims to attract over $200 billion in AI infrastructure investment by 2028.

  • Compute Capacity Expansion: Plans are underway for a second phase of the AI Mission, focusing on research, innovation, and broader access to AI tools. This includes expanding shared compute capacity beyond the current 38,000 GPUs with an additional 20,000 units planned soon.

  • Addressing Challenges: The government acknowledges structural hurdles such as ensuring reliable power and water for energy-intensive data centers. However, India's energy mix, with over half of its generation capacity from clean sources, is seen as an advantage.

A Strategy Focused on Inclusivity and Development

India's AI strategy is distinct in its focus on using technology for societal benefit and national development, distinguishing it from a purely commercial or military focus seen elsewhere.

  • Public Sector Leadership: Unlike many Western nations, India's AI development is characterized by government-led initiatives aimed at tackling large-scale development challenges.

  • Social Good Emphasis: A core tenet of India's approach is the use of AI for social good and to address fundamental development needs.

  • Democratizing Access: The strategy prioritizes making AI resources accessible to a broader population, moving beyond a select few companies.

  • Ethical and Inclusive AI: India places importance on ethical considerations and inclusive AI development, setting it apart from other nations prioritizing different principles.

Global Positioning and Technological Autonomy

India is strategically positioning itself in the global AI landscape, emphasizing cooperation and leadership, particularly for the Global South, while also building its own technological self-reliance.

  • Global Discourse: India seeks to steer global conversations towards developing and deploying AI for economic development and social good.

  • Technological Autonomy: The nation views AI as a lever to build its own technological capabilities and ensure self-reliance.

  • Strategic Interdependence: A reframing of AI sovereignty as strategic interdependence is proposed as a pathway to long-term competitiveness.

  • Data as a Strategic Asset: The increasing recognition of data as a strategic asset is driving investments in local infrastructure by governments globally, a trend India is also following.

Diverse Approaches to AI Sovereignty

The concept of "sovereign AI" is interpreted differently by various nations, leading to varied strategic investments and priorities.

  • National Asset View: Some nations consider AI a strategic asset, suggesting a focus on national control and potential military or economic advantage.

  • Investment in Local Infrastructure: Many governments are investing heavily in local compute and data center infrastructure to foster domestic innovation and resilience.

  • Value Chain Control: For India, sovereign AI implies controlling the entire AI value chain, from data processing to intelligence generation, within its borders.

  • Balancing Risk and Opportunity: India's national AI strategy involves a careful balance between fostering innovation and mitigating potential risks.

"Some nations consider AI strategic asset, India believes in open, transparent sharing of tech." - Prime Minister Narendra Modi

Key Initiatives and Data Points

  • IndiaAI Mission: A phased mission with a strong focus on R&D, innovation, and diffusion of AI tools.

  • Compute Expansion: Addition of 20,000 GPUs to existing 38,000 units under the IndiaAI Mission.

  • Open Source AI: Hosting of Large Language Model Meta AI (LLAMA) family models on the AIRAWAT compute infrastructure.

  • Regulatory Framework: Development of a tailored regulatory framework by a high-level advisory group.

  • Developer Strength: India is a significant contributor to GitHub AI projects, reflecting a strong developer community.

Expert Perspectives on India's AI Trajectory

Analysis suggests that India's approach to AI, while ambitious, faces significant execution risks and requires careful navigation of global dynamics.

  • The drive to compress years of AI infrastructure build-out into a shorter timeframe presents execution risks. This includes managing the demands on power and water resources.

  • India's emphasis on "AI for All" and social good could position it to influence global AI governance, especially among developing nations.

  • The nation's strategic positioning between the U.S. and China requires a delicate balance of policy intent and global leadership.

Conclusion and Implications

India's commitment to developing AI infrastructure and its distinct philosophy of open, transparent sharing of technology present a complex picture. The nation's strategy aims to leverage AI for inclusive growth, technological autonomy, and to address local development challenges. This approach, while holding significant promise for domestic advancement and global influence, is underscored by the substantial investments required and the structural challenges of building such a critical infrastructure. The success of these initiatives will not only impact India's trajectory but also influence the broader global discourse on AI development and its equitable distribution.

Read More: MCX Stock Price Rises 113% in One Year Due to Higher Trading Volumes

Frequently Asked Questions

Q: What is India's main goal for AI investment by 2028?
India aims to attract more than $200 billion in investment for its AI infrastructure by the year 2028. This is part of a larger plan to boost research and development in artificial intelligence.
Q: How does India plan to share AI technology?
India believes in sharing AI technology in an open and transparent way. This approach aims to make AI tools and resources available to more people and countries, especially in the Global South.
Q: What are India's plans for AI computing power?
India plans to increase its computing power for AI by adding 20,000 more GPUs to its current 38,000 units. This expansion is a key part of the IndiaAI Mission to support AI research and innovation.
Q: How does India's AI strategy differ from other countries?
India's strategy focuses on using AI for social good and national development, led by the public sector. This is different from some other nations that focus more on private sector or military uses of AI.
Q: What challenges does India face in building its AI infrastructure?
India faces challenges like ensuring enough power and water for data centers, which need a lot of energy. However, its use of clean energy sources is seen as a positive factor.