New Delhi, February 18: The Indian government has launched a major strategic initiative to attract over USD 200 billion in artificial intelligence infrastructure investment within the next two years. IT Minister Ashwini Vaishnaw announced the plan during the five-day AI Impact Summit in New Delhi, which included participation from global technology leaders such as OpenAI, Google and Anthropic.

This push is designed to position India as a leading global hub for AI computing and applications. The government plans to use tax incentives, state-backed venture capital and strong policy support to attract the global AI value chain at a time when computing capacity and capital are becoming critical strategic assets. India AI Impact Summit 2026: How India Is Building a Third Model for Global Artificial Intelligence.

Infrastructure and Deep-Tech Investment Targets

A significant portion of the projected USD 200 billion is allocated to key AI infrastructure, including data centres, semiconductor chips and supporting systems. This includes about USD 70 billion already committed by major US technology firms such as Amazon, Google and Microsoft. The government also expects an additional USD 17 billion for deep-tech and AI applications to secure a larger share of the value chain beyond basic infrastructure.

To support growth, New Delhi has introduced policy measures including long-term tax relief for export-oriented cloud services and an INR 100 billion venture programme. The qualifying period for deep-tech companies to be recognised as start-ups has been extended to 20 years, with the revenue threshold for benefits raised to INR 3 billion.

Scaling Compute Capacity and Addressing Challenges

Minister Vaishnaw highlighted the expansion of shared computing capacity under the IndiaAI Mission. Plans include adding 20,000 GPU units in the coming weeks, building on the existing 38,000 units. The second phase of the mission will focus on research, development and wider access to AI tools so that infrastructure is not limited to large corporations. AI Impact Summit India 2026: NeoSapien CEO Dhananjay Yadav Slams Management Over Security Protocols and Stolen Wearables.

Despite the positive outlook, the rapid expansion faces structural challenges such as the high energy and water demands of data centres. The minister acknowledged these risks but noted that India’s energy mix, with more than half of installed capacity coming from clean sources, could help meet the growing utility needs of the AI sector.

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