Indian AI market is anticipated to reach $7.8 billion by 2025. According to the State of the Education report (SOER) 2022, AI will increase at a CAGR of 20.2%. Recently, all countries place the top priority on strengthening educational standards and student learning results. By 2030, AI in education systems will add considerable efforts to attain sustainable development goals in India along with help in addressing issues related to equality, and inclusion in education. AI will complement and supplement human intelligence and enhance the way people live and work.
The public funding for the digital India mission grown by 67% to reach $1.29 billion (Rs. 10,676 crore) in 2022-23. This mission involves a plan for the effective utilization of AI to encourage financial inclusion, supplement the education sector, and transform the urban infrastructure. States such as Tamil Nadu, Punjab, Uttar Pradesh, and Telangana are already utilizing AI-based tools to support law and order, rise agricultural productivity, and improve healthcare delivery.
Several initiatives such as the IndiaAI Mission and the creation of Centres of Excellence for AI are strengthening the country’s AI ecosystem. These efforts are aligned with the vision of Viksit Bharat by 2047, where India aims to become a global AI powerhouse, leveraging innovative technology for governance, economic growth, and societal growth.
The government allocated $103 billion (₹10,300 crore) over five years to support AI capabilities with the approval of the IndiaAI Mission in 2024. This mission is majorly focused on the development of a high-end common computing facility equipped with 18,693 Graphics Processing Units (GPUs), while making it one of the most extensive AI compute infrastructures globally. This capacity is approximately nine times that of the open-source AI model DeepSeek and around two-thirds of what ChatGPT operates on.
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Why Artificial Intelligence?
Cost Efficiency
AI-driven automation significantly decreases operational costs and increases efficiency. AI-based predictive analytics helps companies reduce wastage, optimize supply chains, and improve decision-making.
Increasing Investment
Foreign Direct Investment (FDI) in AI-based startups and research has grown significantly, with major tech giants such as Microsoft, Google, and Amazon investing in AI innovation in India.
Policy Support
The Indian government has recognized the potential of AI in the manufacturing sector and has implemented favorable policies to encourage its responsible use. The Ministry of Electronics and Information Technology has sanctioned the implementation of the 'National Program on Artificial Intelligence.'
Opportunities
AI offers various opportunities for personalized treatment plans, predictive diagnostics, and drug discovery in the healthcare industry. Indian information technology (IT) associations such as National Association of Software and Service Companies (NASSCOM) are actively encouraging AI-driven healthcare solutions, while creating several opportunities for collaboration between U.S. and Indian companies.
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