India is shaping its AI regulations with a practical, sector-specific approach, according to Abhishek Singh, a senior official at the Ministry of Electronics and Information Technology (MeitY) and head of the IndiaAI Mission.
Speaking about the IndiaAI Mission, Singh shared that the government’s Rs 10,300 crore investment through 2029 is already sparking over $10 billion in private funding. This money is helping build a strong AI ecosystem, including new data centers, homegrown AI models, and sustainable infrastructure.
Instead of rigid, one-size-fits-all rules, India’s AI policies will focus on specific uses. For example, the health ministry will oversee AI in healthcare, while other sectors will have their own regulators. "Our regulatory approach is designed to encourage innovation rather than restrict it. We believe regulation should focus on applications, not the underlying technology," Singh said. This approach aims to support startups and global companies while ensuring AI is used responsibly.
The mission is also boosting infrastructure. Most of India’s data centers are in Mumbai and Chennai, but a new undersea cable in Visakhapatnam will help spread them out. These centers will rely on better connectivity and renewable energy, which already makes up nearly 30% of their power needs.
On the innovation front, Singh highlighted progress on homegrown AI models like Sarvam, with funding secured for four more large language models and plans for further support. "Every technology has its development journey," he said, confident that steady investment will lead to widely used AI tools.
The government’s Rs 10,000 crore budget is just the start, with only Rs 1,000 crore spent so far. This has already triggered Rs 20,000 crore in private purchases of 38,000 GPUs and major data center commitments from companies like Microsoft, Reliance Jio, and potentially Google, OpenAI, and IBM. Indian firms like Yotta, E2E Networks, and Jio are leading the way, with government subsidies ensuring long-term growth.
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Singh emphasized that the government is a catalyst, not the main driver. With India as OpenAI’s fastest-growing market, private investment is expected to take the lead. This flexible, collaborative approach could make India a model for other countries, blending smart regulation with rapid AI growth.
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