India prioritises AI and semiconductors as Digital India completes 11 years

India is investing ₹1.64 lakh crore in semiconductor projects and building an AI facility with 45,000 GPUs. The move shifts Digital India to frontier technologies for growth.

Categorized in: AI News Government
Published on: Jun 28, 2026
India prioritises AI and semiconductors as Digital India completes 11 years

As the Digital India programme marks its 11th anniversary on July 1, 2026, the government has signalled a decisive pivot to artificial intelligence and semiconductor manufacturing, approving investments of ₹1.64 lakh crore across 12 semiconductor projects and building a national AI infrastructure with more than 45,000 GPUs. The shift, detailed in a Ministry of Electronics and Information Technology (MeitY) release, positions these frontier technologies as the new engines for India's long-term growth and the Viksit Bharat 2047 vision.

"Having built the foundational layer of digital infrastructure, financial inclusion and citizen service delivery over its first decade, the programme is now anchoring itself in the frontier domains of Artificial Intelligence and semiconductor manufacturing, the two pillars that will define India's technological future and underpin the vision of Viksit Bharat 2047," the ministry said.

IndiaAI Mission anchors national AI push

The IndiaAI Mission, backed by an outlay of over ₹10,372 crore, has set up a shared compute facility with more than 45,000 GPUs to serve as the computational backbone for AI research and deployment. Fifteen large and small language models are currently in development, and the AI Kosh repository now holds over 12,500 datasets, 307 AI models and 20 toolkits. Governance guidelines released in November 2025 reaffirm a commitment to safe and inclusive AI - a priority that underlines the importance of aligning AI for Government strategies with national standards.

Semiconductor manufacturing moves from policy to production

India has approved 12 semiconductor manufacturing projects, drawing an investment pipeline of around ₹1.64 lakh crore. The projects include one semiconductor fabrication unit, two compound semiconductor fabs and nine packaging units. The India Semiconductor Mission 2.0, announced in the Union Budget 2026-27, will further strengthen capabilities in equipment, materials and indigenous intellectual property. The ministry said the ecosystem "has moved decisively from policy to production."

Digital infrastructure and startup growth continue

Broadband subscribers have reached 106.58 crore, and BharatNet now connects 2.18 lakh gram panchayats with high-speed broadband. 5G coverage extends to 99.9 per cent of districts. The electronics manufacturing sector has grown into a ₹13 lakh crore industry, and electronics is now India's third-largest export category. India is the world's second-largest mobile phone manufacturer. The startup ecosystem saw its strongest year in FY26, with over 55,200 new startups recognised and direct employment from recognised startups reaching 23.36 lakh. Nearly 48 per cent of all recognised startups have at least one woman director or partner.

Why this matters for government professionals

The government's pivot to AI and semiconductors means that policy frameworks, procurement rules, and public service delivery will increasingly intersect with these technologies. For officials shaping regulations, managing digital infrastructure, or integrating AI into citizen services, building domain knowledge is no longer optional. The AI Learning Path for Policy Makers provides structured training to help navigate the technical and governance challenges ahead.


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