The Ministry of Electronics and Information Technology (MeitY) is setting ambitious goals to position India as a global leader in electronics and artificial intelligence (AI). While the Production Linked Incentive (PLI) scheme for components has been a significant driver of growth, the ministry is aiming for much more.
S Krishnan, Secretary of MeitY, told CNBC-TV18 that the government is working on plans that go beyond the PLI scheme, focusing on expanding India’s capabilities in electronics manufacturing and semiconductors.
In the semiconductor sector, the government has already approved four fabs, but Krishnan said India needs more, including display fabs and compound semiconductors. These investments are critical to building a robust semiconductor ecosystem that can support India’s growing demand for electronics and position the country as a global hub for chip manufacturing. Prime Minister Narendra Modi has assured continued support for this sector, and Krishnan said MeitY is currently working on a follow-up plan to scale up these efforts.
On the AI front, the response to India’s AI mission has been overwhelmingly positive, Krishnan said, adding that the first Request for Proposal (RFP) for graphical processing units (GPUs) received bids for over 20,000 GPUs, double the initial target of 10,000. Krishnan said this strong interest from the private sector shows that there is an appetite for creating compute capacity in India, which is essential for driving AI innovation. He noted that this initiative aligns with India’s broader vision of becoming a global leader in AI, with a focus on foundational models that go beyond traditional large language models to include multimodal capabilities.
The ministry is also addressing critical infrastructure needs, such as data centres and power requirements, to support the growth of AI and electronics. With the current data centre capacity at 1,000 MW, the government is working to expand this significantly. Krishnan further said that while the focus is on meeting domestic demand, India is open to exporting excess capacity to other countries, further enhancing its global competitiveness and positioning itself as the world’s data centre.
By combining ambitious plans with targeted investments, MeitY is laying the groundwork for India to become a global leader in electronics and AI. These efforts are expected to drive innovation, create jobs, and position India as a key player in the global technology landscape.
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