The Indian government plans to invest 103 billion rupees ($1.25 billion) in AI projects, including computing infrastructure, large language models, and startup funding. The government aims to develop AI applications for the public sector, anticipating India’s AI market to reach $17 billion by 2027, with a growth rate of 25%–35% annually from 2024 to 2027.
According to junior minister Rajeev Chandrasekhar, the investment will boost computing infrastructure and support AI startups, fostering India’s AI ecosystem. Though India’s AI market is still in its early stages, with projections of $17 billion by 2027, it only makes up a small portion of the worldwide AI software market, estimated to reach $297 billion by the same year.
AI software brings both an opportunity and challenges for India’s software services sector, which has grown since the outsourcing boom of the 1990s. AI models may put engineering graduates in danger of replacing traditional call centre and coding jobs. Sam Altman of OpenAI emphasised that significant funding is required for Indian AI projects.
A collaboration between Mukesh Ambani’s Reliance Industries and top universities aims to unveil a ChatGPT-style chatbot application.
