Government Plans to Expand Compute Capacity to Boost AI Growth in India

The rapid global advancement of Artificial Intelligence (AI) has led to increased demand for GPU-based servers, which significantly outperform traditional CPU-based servers in processing speed. To address this, the Indian government is exploring ways to enhance the nation’s compute capacity under the ₹10,372 crore India AI Mission, according to Electronics and IT Secretary S Krishnan.

Speaking at a Deloitte India event, Krishnan highlighted that over ₹4,500 crore of the mission’s budget is dedicated to compute capacity. “We are assessing the possibility of further increasing compute capacity through viability gap funding, depending on the actual demand that arises,” he said. This move is expected to strengthen the AI ecosystem in the country, with the government recently inviting bids from companies to provide AI services via cloud platforms.

The India AI Mission aims to make supercomputing resources—comprising more than 10,000 GPUs—available to stakeholders such as startups, MSMEs, and academic institutions. This will be facilitated through public-private partnerships (PPP), where the government offers subsidized access to AI compute capacity, particularly for innovation and research.

Krishnan also mentioned the ongoing National Supercomputer Mission (NSM), which focuses on meeting public sector demands for advanced computing resources.

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