Government Expands Sovereign AI Infrastructure Through IndiaAI Mission and Semiconductor - 6th August 2026 - Ministry of Electronics and Information Technology - Gazette Notification PDF
Read or download the official PDF of this gazette notification issued by the Ministry of Electronics and Information Technology on 6th August 2026. Classified under Press Release.
Executive Summary
The Government of India is expanding its sovereign AI and semiconductor infrastructure through the IndiaAI Mission (Rs. 10,371.92 crore) and the Semicon 2.0 initiative (Rs. 1,27,500 crore, approved July 15, 2026) to achieve technological self-reliance. These programs focus on developing indigenous foundation models, scaling compute capacity, and strengthening domestic semiconductor manufacturing. Key progress includes the identification of 20 indigenous AI models and the establishment of a 1.1 EFLOPS compute system at the NIC Data Centre.
Key Points / Main Content
IndiaAI Mission and Sovereign Models
Approved on March 7, 2024, the mission has a five-year outlay of Rs. 10,371.92 crore to build an inclusive AI ecosystem.
Following a January 30, 2025 call for proposals, 20 indigenous foundation models (12 Large Multimodal and 8 Small Language Models) were identified for support.
Notable supported outputs include models from Sarvam AI, Gnani.AI, BharatGen, and Avataar AI, with intellectual property retained by the applicants.
AI Compute and Infrastructure
15 Compute Service Providers have been empaneled to provide subsidized compute support for 237 approved projects.
The government has sanctioned 93.18 lakh GPU hours and issued a purchase order for a 1.1 EFLOPS High-Performance AI Compute System in Delhi.
Research, Development, and Safety
58 AI Centres of Excellence have been approved for establishment across States and Union Territories.
20 AI solutions have been deployed across public-sector institutions, supported by 11 national-level hackathons.
13 specific projects have been selected to address "Safe & Trusted AI," focusing on bias mitigation, privacy, and algorithm auditing.
National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)
Implemented with an outlay of Rs. 3,660 crore, establishing 25 Technology Innovation Hubs (TIHs) at academic institutions.
The TIHs focus on technology development, human resource skill development (UG to post-doctoral), and supporting deep-tech startups.
Semiconductor Manufacturing and Semicon 2.0
Semicon 2.0 was approved on July 15, 2026, with an outlay of Rs. 1,27,500 crore to accelerate Indian-designed chips and expand fabrication units.
The initial 2022 program has already resulted in 12 approved manufacturing projects with a committed investment of Rs. 1.64 lakh crore.
International Cooperation and Global Standing
India joined the Pax Silica coalition in 2026 to secure global silicon supply chains alongside the U.S. and other partner nations.
As of November 2025, India is ranked 3rd globally in AI competitiveness and is the second-largest contributor to GitHub AI projects.
Impact Analysis
Tech Startups and AI ResearchersImpact
They receive financial and technical support to develop indigenous models while retaining their intellectual property. Subsidized GPU hours reduce the cost of entry for AI innovation.
Action Required
Apply for subsidized compute support through empaneled providers and participate in the IndiaAI Mission’s calls for proposals.
Academic InstitutionsImpact
Institutions serve as hubs for 25 Technology Innovation Hubs and 58 Centres of Excellence, receiving funding for research and skill development.
Action Required
Establish TIHs, implement fellowship-supported degree programs, and conduct translational research to develop AI prototypes.
Semiconductor Manufacturers and DesignersImpact
Beneficiaries of the Rs. 1,27,500 crore Semicon 2.0 outlay, facilitating the setup of fabs, packaging units, and the development of Indian-designed chips.
Action Required
Engage with the Semicon India Programme to secure investment for fabrication units and ecosystem development (materials, gases, and equipment).
Public Sector InstitutionsImpact
Access to 20 deployed AI solutions and 62 prototypes designed to address India-centric challenges and improve public service delivery.
Action Required
Integrate and deploy the AI solutions developed through the IndiaAI Mission and national hackathons.
Key Entities Referenced
IndiaAI Mission: A government-approved initiative with a ₹10,371.92 crore outlay to establish a robust domestic AI ecosystem, supporting indigenous foundation models and subsidized compute infrastructure.
Semicon 2.0: An expanded policy initiative with a ₹1,27,500 crore outlay aimed at accelerating the design and development of Indian chips, semiconductor fabrication units, and advanced packaging.
India Semiconductor Mission: A strategic mission adopted by the government to build technological sovereignty and domestic manufacturing capabilities across the semiconductor and electronics value chain.
National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS): A ₹3,660 crore mission implemented by the Department of Science & Technology that established 25 Technology Innovation Hubs specializing in AI, robotics, and quantum technologies.
Pax Silica coalition: An international alliance involving India and the United States aimed at securing the global silicon supply chain and strengthening resilient technology ecosystems.
Ministry of Electronics & IT
Government Expands Sovereign AI Infrastructure
Through IndiaAI Mission and Semiconductor
Initiatives
Indigenous Foundation Models, AI Compute Capacity and
Semicon 2.0 Strengthen Technological Self-Reliance
प्रव तथ: 06 AUG 2026 4:05PM by PIB Delhi
India's AI strategy is based on the Hon'ble Prime Minister's vision to democratize the use of technology.
It aims to address India centric challenges and create economic and employment opportunities for all
Indians.
The Government is cognizant of the risks associated with limited domestic capabilities in semiconductor
manufacturing, computing infrastructure, foundational models and advanced research ecosystems, and
has adopted a multi pronged and calibrated approach under the IndiaAI and India Semiconductor
Missions to build technological sovereignty across the AI value chain.
IndiaAI Mission
The Government approved the IndiaAI Mission on 7th March 2024 with a total outlay of Rs. 10,371.92
crore over five years. It establishes a robust and inclusive AI ecosystem aligned with India's development
goals.
Sovereign Models:
Pursuant to the Call for Proposals issued on 30 January 2025, against 506 applications received, 20
indigenous foundation model proposals, comprising 12 Large Multimodal Models and 8 Small Language
Models, have been identified for support, with intellectual property retained by the applicants. Notable
outputs already launched include:
● Sarvam AI's 30 billion and 105 billion parameter models, and Indus
● Gnani.AI's speech-to-speech model
● BharatGen's multilingual foundation models (Param2-17B, Patram-7B and
Shrutam-2)
● Avataar AI's video generation model
Compute:
● 15 Compute Service Providers have been empaneled over four rounds.
● 237 projects have been approved for subsidized compute support, with 93.18 lakh
GPU hours sanctioned.● A Purchase Order has been issued for a High-Performance AI Compute System of
approximately 1.1 EFLOPS at the NIC Data Centre, Shastri Park, Delhi.
Application Development:
● 11 National-level Hackathons/Innovation Challenges launched.
● 62 AI prototypes developed and 20 AI solutions deployed across public-sector
institutions.
Center of Excellence:
● 58 AI Centres of Excellence have been approved for establishment across States
and Union Territories, of which 22 have been approved and initiated across 13
States/UTs to date.
Safe & Trusted AI:
● 13 projects addressing bias mitigation, machine unlearning, privacy preserving AI,
algorithm auditing and explainability have been selected.
National Mission on Interdisciplinary Cyber-Physical Systems:
The Department of Science & Technology is implementing the National Mission on Interdisciplinary
Cyber-Physical Systems (NM-ICPS), approved by the Union Cabinet with an outlay of Rs. 3,660 crore.
Under this Mission:
● 25 Technology Innovation Hubs (TIHs) have been established at academic
institutions across the country, each specialising in domains including AI & Machine
Learning, Robotics, IoT & Internet of Everything (IoE), Cybersecurity, Mining,
Quantum Technologies and FinTech.
● The TIHs undertake technology development and translational research towards
prototypes and products in Cyber-Physical Systems.
● Human resource and skill development is carried out through fellowship-
supported UG/PG, PhD and post-doctoral programmes, faculty development
programmes and short-term training courses.
● Innovation, entrepreneurship and deep-tech startups are supported through
funding, incubation and mentoring, along with technology transfer to Government
organisations and industry.
Strengthening Domestic Semiconductor Manufacturing
Inspired by the Hon'ble Prime Minister's vision of AtmaNirbhar Bharat and making India a global
electronics manufacturing hub, the Government adopted structured and targeted policy initiatives for the
development of electronics manufacturing across the entire value chain including semiconductors.
The semiconductor industry is a foundational industry. All sectors of the economy such as industrial,
consumer, defence, telecommunication and automotive etc depend on semiconductors. This sector offers
transformative advantages by driving technological innovation, economic growth, and strategic self-
reliance.
Recognising the strategic importance of semiconductors for the overall economy and national security,
the Government launched the Semicon India Programme in January 2022 for setting up of
semiconductor fabs, display fabs, semiconductor packaging and also for promotion of Indian designedchips. So far, 12 manufacturing projects have been approved under this programme for a total committed
investment of Rs. 1.64 lakh crore, of which 3 projects have already started commercial production.
Building on the success of this programme, the Union Cabinet approved Semicon 2.0 on 15th July 2026
with an outlay of Rs. 1,27,500 crore. Semicon 2.0 aims to accelerate design and development of Indian
designed chips, expand semiconductor fabrication units (fabs) and advanced packaging, and support
wider semiconductor ecosystem development, including materials, gases and equipment needed for
semiconductor manufacturing.
International Cooperation
India joined the Pax Silica coalition at the India AI Impact Summit 2026, along with the United States
and other partner nations, to secure the global silicon supply chain and strengthen a resilient technology
ecosystem.
These efforts reflect the Government's focused approach to building a self reliant, inclusive and globally
competitive AI ecosystem.
Assessment of India's Standing on AI Infrastructure and Self-Reliance
As per the Stanford Global AI Vibrancy Report published in November 2025, India is ranked 3rd globally
in AI competitiveness and ecosystem vibrancy, and is the second largest contributor to GitHub AI
projects, reflecting a vibrant developer community.
India's compute ecosystem currently draws on globally sourced GPUs procured through empaneled
Compute Service Providers, consistent with prevailing international supply chains for AI hardware.
Steps taken to reduce this dependence over time include the High-Performance AI Compute System
taken up for establishment at the NIC Data Centre, Shastri Park, Delhi.
This information was submitted by Union Minister of State for Electronics and Information Technology
Shri Jitin Prasada in Lok Sabha on 05.08.2026.
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Vinod Kumar / Kanishk Sharma
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