India’s technology ambitions are no longer limited to policy announcements, they are now translating into capital flows, institutional reforms, and global positioning. At the center of this transformation is the IndiaAI Mission, a flagship initiative that is reshaping AI in India while influencing private sector investment and deep tech growth across multiple domains.
Information submitted in the Lok Sabha on February 11, 2026, by Minister of Electronics and IT Ashwini Vaishnaw outlines how government-backed reforms and funding mechanisms are strengthening India’s AI and space technology ecosystem.
For global observers, the scale and coordination of these efforts signal a strategic push to position India as a long-term technology powerhouse.
IndiaAI Mission Lays Foundation for AI in India
Launched in March 2024 with an outlay of ₹10,372 crore, the IndiaAI Mission aims to build a comprehensive AI ecosystem. In less than two years, the initiative has delivered measurable progress.
More than 38,000 GPUs have been onboarded to create a common compute facility accessible to startups and academic institutions at affordable rates. Twelve teams have been shortlisted to develop indigenous foundational models or Large Language Models (LLMs), while 30 applications have been approved to build India-specific AI solutions.
Talent development remains central to the IndiaAI Mission. Over 8,000 undergraduate students, 5,000 postgraduate students, and 500 PhD scholars are currently being supported. Additionally, 27 India Data and AI Labs have been established, with 543 more identified for development.
India’s AI ecosystem is also earning global recognition. The Stanford Global AI Vibrancy 2025 report ranks India third worldwide in AI competitiveness and ecosystem vibrancy. The country is also the second-largest contributor to GitHub AI projects—evidence of a strong developer community driving AI in India from the ground up.
Private Sector Investment in AI Gains Speed
Encouraged by the IndiaAI Mission and broader reforms, private sector investment in AI is rising steadily. According to the Stanford AI Index Report 2025, India’s cumulative private investment in AI between 2013 and 2024 reached approximately $11.1 billion.
Recent announcements underscore this momentum. Google revealed plans to establish a major AI Hub in Visakhapatnam with an investment of around $15 billion—its largest commitment in India so far. Tata Group has also announced an $11 billion AI innovation city in Maharashtra.
These developments suggest that AI in India is moving beyond research output toward large-scale commercial infrastructure. The upcoming India AI Impact Summit 2026, to be held in New Delhi, will further position India within the global AI debate. Notably, it will be the first time the global AI summit series takes place in the Global South, signaling a shift toward more inclusive technology governance.
Deep Tech Push Backed by RDI Fund and Policy Reforms
Beyond AI, the government is reinforcing the broader deep tech sector through funding and policy clarity. A ₹1 lakh crore Research, Development and Innovation (RDI) Fund under the Anusandhan National Research Foundation (ANRF) has been announced to support high-risk, high-impact projects.
The National Deep Tech Startup Policy addresses long-standing challenges in funding access, intellectual property, infrastructure, and commercialization. Under Startup India, deep tech firms now enjoy extended eligibility periods and higher turnover thresholds for tax benefits and government support.
These structural changes aim to strengthen India’s Gross Expenditure on Research and Development (GERD), currently at 0.64% of GDP. Encouragingly, India’s position in the Global Innovation Index has climbed from 81st in 2015 to 38th in 2025—an indicator that reforms are yielding measurable outcomes.
Space Sector Reforms Expand India’s Global Footprint
Parallel to AI in India, the government is also expanding its ambitions in space technology. The Indian Space Policy 2023 clearly defines the roles of ISRO, IN-SPACe, and private industry, opening the entire space value chain to commercial participation.
IN-SPACe now operates as a single-window agency authorizing non-government space activities and facilitating access to ISRO’s infrastructure. A ₹1,000 crore venture capital fund and a ₹500 crore Technology Adoption Fund are supporting early-stage and scaling space startups.
Foreign Direct Investment norms have been liberalized, permitting up to 100% FDI in satellite manufacturing and components. Through NewSpace India Limited (NSIL), the country is expanding its presence in the global commercial launch market, particularly for small and medium satellites.
The government’s collaboration between ISRO and the Department of Biotechnology in space biotechnology—including microgravity research and space bio-manufacturing—signals how interdisciplinary innovation is becoming a national priority.
A Strategic Inflection Point for AI in India
Taken together, the IndiaAI Mission, private sector investment in AI, deep tech reforms, and space sector liberalization form a coordinated architecture. This is not merely about technology adoption—it is about long-term capability building.
For global readers, India’s approach offers an interesting case study: sustained public investment paired with regulatory clarity and private capital participation. While challenges such as research intensity and commercialization gaps remain, the trajectory is clear.
The IndiaAI Mission has become more than a policy initiative, it is emerging as a structural driver of AI in India and a signal of the country’s broader technological ambitions in the decade ahead.
