**Executive Summary**
The Government of India has launched the IndiaAI Mission with a Rs. 10,372 crore outlay to democratize AI and expand compute capacity through affordable GPU access. Complementing this, the Semicon India Programme and Design Linked Incentive (DLI) Scheme are fostering a domestic semiconductor ecosystem, evidenced by 190 approved AI projects and major manufacturing investments. These updates were officially submitted to the Lok Sabha by the Ministry of Electronics & IT on March 25, 2026.
**Key Points / Main Content**
**IndiaAI Mission and Compute Infrastructure**
* Allocated Rs. 10,372 crore for the development of the national AI ecosystem.
* Onboarded over 38,000 GPUs via an AI compute portal to provide affordable high-performance resources to startups and academia.
* Approved 190 total projects: 78 with government entities, 76 with startups/MSMEs, and 36 with researchers, academia, and students.
**Indigenous Technical Development**
* Initiated projects under the National Supercomputing Mission (NSM) to design processors and GPGPUs.
* Adopted the RISC-V open-source instruction set architecture to strengthen indigenous High Performance Computing (HPC) capabilities.
**Semiconductor Manufacturing Ecosystem**
* Approved 10 semiconductor manufacturing units under the Semicon India Programme.
* Commenced commercial production in one unit and pilot production in three others.
* Facilitated a Rs. 91,526 crore investment by Tata Electronics Private Limited (TEPL) for a Fab facility in Gujarat.
* Targeted technology nodes range from 110 nm to 28 nm with a capacity of 50,000 Wafer Starts Per Month.
**Design Linked Incentive (DLI) Scheme**
* Established a three-tier framework providing infrastructure support, product design incentives (up to 50% cost reimbursement), and deployment linked incentives (4%–6% of net sales).
* Supported 103 fabless chip design companies with access to advanced infrastructure.
* Approved 24 projects for semiconductor chips and SoCs across sectors like drone detection, satellite communications, and IoT.
* Achieved the fabrication of 7 chips and the development of over 140 reusable semiconductor IP cores.
**Impact Analysis**
**Startups, MSMEs, and Fabless Companies**
**Impact**
These entities benefit from subsidized access to critical GPU infrastructure and financial reimbursements for chip design and productization. The DLI scheme has already enabled 14 companies to raise venture capital funding.
**Action Required**
Eligible companies should apply through the AI compute portal for resources and utilize the DLI framework to offset design and deployment costs.
**Academia, Researchers, and Students**
**Impact**
They gain access to advanced computing tools and financial backing for research; 36 projects are currently dedicated to this group.
**Action Required**
Researchers and students must align their projects with the IndiaAI Mission guidelines to secure approved project status and affordable compute access.
**Government Entities**
**Impact**
Government departments are leading 78 approved projects, focusing on strengthening national security and technological self-reliance.
**Action Required**
Relevant departments must oversee the implementation of the 190 approved projects and continue monitoring the progress of the 10 approved semiconductor manufacturing units.
Key Entities Referenced
IndiaAI Mission: A national initiative with a ₹10,372 crore outlay aimed at developing the AI ecosystem, democratizing compute capacity through GPUs, and supporting startups and academia.
Semicon India Programme: A government programme focused on building a domestic semiconductor and display manufacturing ecosystem, including the approval of manufacturing units and fabrication facilities.
Design Linked Incentive (DLI) Scheme: A scheme providing financial incentives and infrastructure support to domestic companies and MSMEs for semiconductor chip design and IP core development.
National Supercomputing Mission (NSM): A mission aimed at strengthening indigenous High Performance Computing (HPC) capabilities through the design and development of processors based on RISC-V architecture.
Ministry of Electronics & IT
IndiaAI Mission Expands AI Ecosystem with
Affordable Compute and Startup Support
Semicon India Programme Boosts Domestic Chip
Manufacturing and Design Ecosystem
Posted On: 25 MAR 2026 4:01PM by PIB Delhi
Government of India launched IndiaAI mission with outlay of Rs. 10,372 crore for the development of the
overall AI ecosystem in the country. With India’s push to democratise Artificial Intelligence and expand
compute capacity, along with the rapid growth of data centres and cloud infrastructure, there has been a
corresponding increase in demand for high-performance compute resources, including Graphics
Processing Units (GPUs). Under the IndiaAI Mission, more than 38 thousand GPUs for common compute
facility have been onboarded through the AI compute portal, which are being provided to Indian start-ups
and academia at an affordable rate. GPUs are highly advanced equipment and are primarily manufactured
in one country.
Total 190 projects have been approved under the IndiaAI Mission. Out of these 78 projects are with
Government entities, 46 projects are with Startups & MSMEs, 30 projects are with early-stage startups, 27
projects are with Researchers or academia, 5 projects are with students, and 4 projects are with early-stage
researchers.
To strengthen indigenous capabilities in HPC (High Performance Computing) and AI, the design and
development of processors, GPGPUs (General-Purpose Graphics Processing Units), and accelerators, the
projects under NSM (National Supercomputing Mission) have been initiated based on the RISC-V open-
source instruction set architecture.
Guided by Hon’ble PM vision, Government has introduced Semicon India Programme for the
development of semiconductor and display manufacturing ecosystem in the country. 10 Semiconductor
manufacturing units have been approved under the Programme. Out of this, commercial production from 1
unit and pilot production from 3 units has already been started. Tata Electronics Private Limited (TEPL) is
setting up a Semiconductor Fab facility in Gujarat with an investment of Rs. 91,526 crore. The targeted
Technology Nodes are from 110 nm to 28 nm with a proposed total capacity of 50,000 Wafer Starts Per
Month (WSPM).
The Government is promoting semiconductor design capabilities through the Design Linked Incentive
(DLI) Scheme, which aims to support domestic companies, start-ups, and MSMEs in designing
semiconductor IP cores, ASICs (Application-Specific Integrated Circuits), SoCs (System on Chip), and
semiconductor-linked designs through a three-tier framework, comprising:
i. Design Infrastructure Support with access to EDA tools, IP cores, MPW services, and
prototyping facilities;ii. Product Design Linked Incentive offering reimbursement of up to 50% of eligible project
costs, capped at Rs. 15 crore per application; and
iii. Deployment Linked Incentive providing reimbursement of net sales turnover ranging from
6% to 4% over five years, capped at Rs. 30 crore per application.
Under the DLI Scheme:
i. 24 projects have been approved for the design of semiconductor chips and SoCs for sectors
such as video surveillance, drone detection, energy metering, microprocessors, satellite
communications, and broadband and IoT SoCs. Out of these, 14 companies have raised
venture capital funding to scale up and productize their solutions.
ii. 103 fabless chip design companies have been supported with access to advanced chip design
infrastructure.
iii. 7 chips have been successfully fabricated out of 16 designs taped out across multiple
foundries, including advanced nodes such as 12 nm at TSMC.
iv. 10 patents have been filed, and 140+ reusable semiconductor IP cores developed, serving as
critical enablers for advanced chip design.
This information was submitted by Union Minister of State for Electronics and Information Technology
Shri Jitin Prasada in Lok Sabha on 25.03.2026.
***
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