India stands at the cusp of a new era powered by Artificial Intelligence (AI), and the government has allocated more than Rs 10,300 crore over the five years for the ‘IndiaAI Mission’ with 38,000 GPUs deployed, it was announced on Tuesday.

From expanding computing infrastructure to fostering homegrown models and supporting startups, the country is creating a robust AI ecosystem that benefits citizens and drives innovation.

Initiatives in agriculture, healthcare, education, and governance demonstrate practical applications with real impact. Strategic initiatives like the IndiaAI Mission, Digital ShramSetu, and foundational model development are ensuring that innovation reaches every citizen while fostering research, skills, and entrepreneurship, according to an official statement.

At least six million people are employed in the tech and AI ecosystem and the Indian tech sector is projected to cross $280 billion in revenue this year. Moreover, AI can add $1.7 trillion to India’s economy by 2035.

According to the statement, India’s technology sector is expanding rapidly, with annual revenues projected to cross $280 billion this year.

The country hosts more than 1,800 Global Capability Centres, including more than 500 focused on AI. India now has more than 1.8 lakh startups, and nearly 89 per cent of new startups launched last year used AI in their products or services.

On the ‘NASSCOM AI Adoption Index’, India scores 2.45 out of 4, showing that 87 per cent of enterprises are actively using AI solutions.

Leading sectors in AI adoption include industrial and automotive, consumer goods and retail, banking, financial services and insurance, and healthcare. Together they contribute around 60 per cent of AI’s total value.

About 26 per cent of Indian companies have achieved AI maturity at scale, according to a recent BCG survey.

India has also secured the third position globally in Artificial Intelligence competitiveness, according to a report by Stanford University’s '2025 Global AI Vibrancy Tool'.

The ranking emphasises India’s rapid growth in the global AI landscape.

“These efforts lay a strong foundation for India to emerge as a global AI leader while advancing the vision of Viksit Bharat 2047,” said the official statement.