‘Kinetic Enabler for India’s Digital Economy’: Cabinet Nod to AI Mission with Rs 10,372 Crore Budget Outlay – News18

The Narendra Modi-led cabinet on Thursday gave the green light to a comprehensive national-level IndiaAI mission. With a substantial budget outlay of Rs 10,371.92 crore allocated over the next five years, this mission is poised to revolutionise the artificial intelligence landscape of the country.

Commerce minister Piyush Goyal said the IndiaAI mission will establish a comprehensive ecosystem fostering AI innovation through strategic programmes and partnerships in both public and private sectors.

The mission aims to drive responsible and inclusive growth in this particular ecosystem by democratising computing access, enhancing data quality, nurturing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially impactful AI projects, and reinforcing ethical AI practices.

Here are the key components of the IndiaAI mission:

• Compute Capacity: This pillar will establish a high-end scalable AI computing ecosystem, deploying over 10,000 graphics processing units (GPU) through a public-private partnership model. An AI marketplace will also be developed, offering it as a service and pre-trained models to innovators.
• Innovation Centre: Tasked with the development and deployment of indigenous large multimodal models (LMM) and domain-specific foundational models in critical sectors.
• Datasets Platform: Streamlining access to quality non-personal datasets for AI innovation, a unified data platform will be developed to provide seamless access to Indian startups and researchers.
• Application Development Initiative: Promoting AI applications in critical sectors by addressing problem statements sourced from different governmental bodies and institutions.
• FutureSkills: Expanding AI education accessibility through undergraduate, postgraduate, and PhD programmes, along with setting up data and AI laboratories across Tier 2 and 3 cities.
• Startup Financing: Supporting and accelerating deep-tech AI startups by providing streamlined access to funding.
• Safe and Trusted AI: Enabling responsible development, deployment, and adoption of AI through the implementation of frameworks and guidelines.

Union minister of state for electronics and IT, Rajeev Chandrasekhar thanked Prime Minister Narendra Modi for approving the substantial budget of the mission. He stressed on the transformative potential of AI, saying: “AI is going to be the kinetic enabler for India’s digital economy.”

Goyal said the government will come up with scheme guidelines, and selection processes will be competition-based ensuring equal opportunity. Research institutes and startups will be encouraged to contribute, while the goal is to democratise AI’s spread for broader stakeholder benefit.

“The availability of cost-efficient AI computing infrastructure has long threatened to restrict the growth of the nascent AI innovation ecosystem in India. This package of measures, which includes massive investment to create scalable, widely accessible hardware and compute infrastructure, along with sector-focused investment, and a framework for responsible AI, can be transformative for India. It is also a great opportunity for innovators to partner with the government and enable accelerated development,” Arun Prabhu, partner (head of technology and telecommunications), Cyril Amarchand Mangaldas told News18.

Alay Razvi, partner (Accord Juris LLP, Hyderabad) also believes that this announcement reflects a commitment to advancing AI capabilities. “This initiative could foster collaboration and innovation in the AI domain. This could generate interest and impact the share market, potentially influencing sectors related to AI and technology,” he said.

Another expert, Aviral Kapoor, partner at Alagh and Kapoor Law Offices, also appreciated the decision. “This strategic initiative under the IndiaAI programme is set to revolutionise various sectors by supporting deep-tech AI startups, enhancing AI education, and creating an inclusive ecosystem for innovation,” he said.

“The substantial support of Rs 10,372 crore pledged for this mission will propel both compute hardware manufacturing/servers and AI use cases. This was also one of the recommendations of the AI summit organised by IESA in November 2023 at Hyderabad. As a representative body at the forefront of technological advancements, we recognise this as a pivotal step toward establishing India as a global hub for AI innovation and adding to the ESDM vision of the country,” said IESA president Ashok Chandak.