India’s AI strategy: A look at key govt announcements following DeepSeek disruption

Once utilized to process multimedia contented successful video games, GPUs are successful monolithic request crossed the satellite arsenic they are present utilized to powerfulness foundational AI models. US spot institution Nvidia presently dominates the GPU marketplace with over 80 per cent marketplace share.

The IT minister’s remarks travel aft Chinese AI startup DeepSeek’s upheaval of the tech industry, sparked by the merchandise of its reasoning exemplary that is said to rival different cutting borderline foundational AI models connected galore fronts contempt being built astatine a fraction of the cost.

DeepSeek’s surge successful popularity has prompted a treatment astir whether India is lagging down successful the AI contention that is progressively perceived to beryllium dominated by the United States of America and China.

Here is simply a look astatine the cardinal government’s announcements successful the aftermath of DeepSeek’s rise.

Local foundational AI model

A fewer days aft DeepSeek’s low-cost foundational exemplary rattled tech stocks crossed markets, Vaishnaw announced that the authorities is gathering a home ample connection exemplary (LLM) of its ain arsenic portion of the Rs 10,370 crore IndiaAI Mission.

He said that the authorities is successful interaction with astatine slightest six developers, but did not specify however overmuch it would outgo to physique the exemplary and the companies the authorities is presently successful interaction with.

Vaishnaw besides said that the authorities has selected 18 AI-based apps focused connected areas specified arsenic agriculture, learning disabilities, and clime alteration to supply the archetypal circular of backing nether the IndiaAI Mission.

“Over the past 1.5 years, our teams person been moving intimately with startups, researchers, professors etc. Today, we are calling for proposals to make our ain foundational model. The exemplary volition instrumentality attraction of the Indian context, languages, culture, are devoid of biases,” Vaishnaw told reporters.

Referring to probe cited by DeepSeek successful making its AI models much efficient, Vaishnaw said, “Many of our researchers and startups are besides studying immoderate of those papers. There are immoderate papers of 2003 and 2005 which fundamentally archer you however to bash a batch of bully engineering connected the process.”

GPU procurement

Vaishnaw said that the authorities volition marque disposable 18,000 high-end GPU-based compute facilities for AI improvement to entities successful the state successful the adjacent mates of days.

“We already embarked 18,000 GPUs, precise high-end GPUs, and retired of that, 10,000 are already available. So this 18,000 compute powerfulness volition beryllium rolled retired successful a mates of days. The tender process got completed past week, and successful different mates of days, 3-4 days, this volition beryllium rolled out,” Vaishnaw said.

The authorities has besides selected 10 companies that volition proviso 18,693 GPUs, including the Hiranandani Group-backed Yotta, Jio Platforms, Tata Communications, E2E Networks, CMS Computers, Ctrls Datacenters, Locuz Enterprise Solutions, NxtGen Datacenter, Orient Technologies, and Vensysco Technologies.

Nearly fractional of the full GPUs volition travel from Yotta alone, who has committed to connection 9,216 units.

These GPUs are being procured by the cardinal authorities nether the IndiaAI Mission, which was sanctioned Rs 2,000 crore for 2025-26 (a 5th of the scheme’s full outlay of Rs 10,370 crore), arsenic per the Union Budget 2025 projected by Finance Minister Nirmala Sitharaman connected February 1.

Sitharaman besides announced a caller presumptive taxation authorities for non-residents providing services successful India’s electronics manufacturing sector, a determination that could springiness a fillip to overseas technicians and entities moving successful the electronics assemblage successful India, and assistance the country’s aspirations of becoming a semiconductor manufacturing base.

Common GPU compute facility

The authorities volition motorboat a communal compute facility, from wherever startups and researchers tin entree the computing power, successful the adjacent fewer days. The outgo of accessing higher extremity GPUs would beryllium Rs 150 per hour, and utilizing little extremity GPUs would outgo Rs 115.85 per hour.

To further easiness entree to these services, the authorities volition springiness a 40 per cent subsidy to extremity users connected the full price.

“Globally, GPU entree costs $2.5-$3 per hour. We are making it available, aft the subsidy for astir $1 per hour,” Vaishnaw said.

“The researchers, startups, academicians, colleges, IITs, each of them tin person entree to this compute power, and they tin commencement foundational models,” the IT curate was quoted arsenic saying.

Centre of Excellence for AI for education

The authorities volition acceptable up a caller centre of excellence for AI for acquisition with an outlay of Rs 500 crore, Sitharaman said during her fund speech.

“I had announced 3 centres of excellence successful artificial quality for agriculture, wellness and sustainable cities successful 2023. Now, a centre of excellence successful artificial quality for acquisition volition beryllium acceptable up with a full outlay of Rs 500 crore,” she said.

Sitharaman besides revealed plans for 5 National Centres of Excellence for Skilling, designed to equip younker with industry-relevant expertise.

“These centres volition beryllium acceptable up with planetary partnerships to enactment Make for India, Make for the World manufacturing,” Sitharaman stated. The inaugural volition screen program design, grooming of trainers, a accomplishment certification framework, and regular assessments.

These moves travel amid concerns that AI could displace a fig of jobs successful India. “Although the interaction of AI connected labour volition beryllium felt crossed the world, the occupation is magnified for India, fixed its size and its comparatively debased per capita income,” work the Economic Survey 2024-25 released connected January 31.