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As Digital India turns 11, govt bets on AI, semiconductors to drive next growth phase

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New Delhi | June 27, 2026 10:56:05 PM IST
As the Digital India programme completes 11 years on July 1, the government on Saturday highlighted a shift in its focus towards artificial intelligence (AI) and semiconductor manufacturing, saying it has approved investments worth Rs 1.64 lakh crore across 12 semiconductor projects while building a national AI ecosystem backed by over 45,000 GPUs.

According to a Ministry of Electronics and Information Technology (MeitY) release, Digital India is entering its next phase with a stronger focus on frontier technologies after spending the past decade expanding digital infrastructure, financial inclusion and citizen services.

"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.

The ministry said the IndiaAI Mission, approved with an outlay of over Rs 10,372 crore, has established a shared compute facility with more than 45,000 GPUs to strengthen AI research and development in the country.

"At its foundation is the establishment of a shared compute facility with over 45,000 GPUs, creating the computational backbone for AI research and deployment at national scale," the release said.

The government said 15 large and small language models are being supported under the AI Foundation Model pillar, while AI Kosh now hosts more than 12,500 datasets, 307 AI models and 20 toolkits. It added that AI Governance Guidelines released in November 2025 reaffirm India's commitment to developing AI that is "safe, inclusive and trustworthy."

On semiconductors, the ministry said India has approved 12 manufacturing projects with an investment pipeline of around Rs 1.64 lakh crore, including one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging units.

"India's semiconductor ecosystem has moved decisively from policy to production," the ministry said, adding that India Semiconductor Mission 2.0 announced in the Union Budget 2026-27 would further strengthen domestic capabilities in semiconductor equipment, materials and indigenous intellectual property.

The release said the investments in AI and semiconductors are helping transform India's electronics manufacturing sector, which has grown into a Rs 13 lakh crore industry.

"The sector has grown into an industry valued at Rs 13 lakh crore, and electronics has emerged as India's third-largest export category," the ministry said, adding that India is now the world's second-largest mobile phone manufacturer.

Highlighting the broader digital ecosystem, the ministry said broadband subscribers have reached 106.58 crore, BharatNet has connected 2.18 lakh gram panchayats with high-speed broadband, and 5G services now cover 99.9 per cent of districts across the country.

The ministry also said India's startup ecosystem recorded its strongest year in FY26, with over 55,200 new startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), while direct employment generated by recognised startups rose to 23.36 lakh.

"Nearly 48 per cent of all recognised startups feature at least one woman director or partner, underscoring the inclusive character of India's innovation growth," the release added. (ANI)

 
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