Currently, approximately USD 1.2 billion is being invested in the field of Artificial Intelligence (AI) in India. But this is not considered sufficient to compete at the global level. Experts say that it is necessary to increase investment further so that India can create a strong base in AI technology and compete with other countries of the world.
Big opportunity in Budget 2026‑27
Shankar Trivedi, who is a senior vice president at NVIDIA, said that the announcement of 20 years of tax exemption for foreign companies in Budget 2026‑27 is an important step. If any foreign company uses data center services in India or builds its own data center, then it will not have to pay tax till 2047. This will provide a huge opportunity to investors to create AI infrastructure in India and will attract investment.
These tax exemptions ensure that whether a company builds its own data center in India or acquires services from an Indian data center, the tax treatment will be the same in both the cases, thereby creating a level playing field.
India’s current AI investments
Trivedi said that India’s investment in AI infrastructure is commendable and it is being used very well. However, if we can spend about USD 150 billion annually on other infrastructure in the country such as roads, railways, airports and electricity grid, then there is a need to increase investment in AI in the same way. With this, India can achieve a big position not only for itself but also in AI manufacturing and services at the global level.
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NVIDIA and AI Ecosystem
NVIDIA is a leader in fast-processing chipsets like GPUs that provide the hardware needed for the AI development process. It says that better computing capacity will help in making AI systems faster and effective, thereby further strengthening the AI ecosystem in the country.
IndiaAI Mission
In March 2024, the government had approved IndiaAI Mission, whose budget is approximately ₹ 10,371.92 crore. The objective of this mission is to create a comprehensive AI ecosystem jointly in the public and private sectors. Under this, AI innovation will be rapidly promoted through strategic programs and partnerships.