Parliament Question: Impact of US Export Restriction on Country's AI Development

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO. 3097 TO BE ANSWERED ON: 11.03.2026 IMPACT OF US EXPORT RESTRICTION ON COUNTRY'S AI DEVELOPMENT †3097. SHRI NEERAJ MAURYA: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) whether any assessment made by the Government regarding the impact of United States export restrictions on the availability and procurement cost of Artificial Intelligence (AI) chips Graphics Processing Unit (GPUs) on country's AI development; (b) if so, the details of the steps being taken by the Government through public-private partnerships under the National AI Mission to strengthen the AI infrastructure; (c) the details of the efforts being made by the Government under the Design Linked Incentive (DLI) policy of the India Semiconductor Mission (ISM) to promote the design and production of AI and semiconductor chips; (d) the details of the plan for increase funding for Indian corporate, Micro, Small and Medium Enterprises (MSMEs), startups and exporters under the DLI policy and the timeframe fixed and allocation made in this regard; and (e) the manner in which the Government is collaborating with global technology leaders to strengthen India's AI infrastructure? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) to (e): The Government of India emphasizes the concept of 'AI for All,' aligning with the Hon’ble Prime Minister's vision to democratize use of technology. This initiative aims to ensure that AI benefits all sectors of society, driving innovation and growth. In March 2024, Government of India launched IndiaAI mission with outlay of Rs 10,372 Cr for development of the overall AI ecosystem in the country. The Government has adopted a holistic and sustainability-oriented approach for AI compute infrastructure under the IndiaAI Mission. IndiaAI Compute Pillar under IndiaAI Mission aims to deliver Compute as a Service to address India‟s dedicated AI computing needs across various sectors: The IndiaAI Compute Portal (https://compute.indiaai.gov.in) has been developed to enable discovery, access and utilisation of the empanelled AI cloud services.National AI compute capacity is operationalized through empaneled AI service providers offering GPU access on cloud at subsidized rates. Fourteen (14) AI Service providers have been empaneled to provide affordable access to high-end AI compute infrastructure. The data centres from which these services are delivered are located across multiple regions of the country. At present, all empaneled AI service providers are MeitY-empaneled Cloud Service Providers, with data centres situated in cities such as Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar. IndiaAI has notified an End User Policy governing access to GPU resources and subsidy allocation. Eligible end users include startups, MSMEs, researchers, academic institutions, students and Government entities. Semicon India Programme Towards domestic design and production efforts, the Government has approved Semicon India Programme for the development of semiconductor and display manufacturing ecosystem in the country. The Design Linked Incentive (DLI) Scheme offers support across various stages of development & deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. 24 projects approved for the design of semiconductor chips and SoCs, with a total project value of Rs. 900 crore, including investments in design infrastructure • These projects address critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT SoCs. • Out of 24 projects, 14 companies have raised venture capital funding to scale up and productize their solutions, catalyzing private investment at more than a 3× multiple of the incentives disbursed • ₹650 crore raised in VC funding by Indian semiconductor startups • 7 chips have been successfully fabricated out of 16 designs taped out across multiple foundries, including advanced nodes such as 12 nm at TSMC • 105 fabless chip design companies have been supported with access to advanced chip design infrastructure, cumulatively consuming 60 lakh hours of tool usage 315 Universities are also getting access to advanced EDA tools for the students. So far, their usage has exceeded 185 lakh hours. • 146 designs taped out by 49 institutions across India out of which SCL has successfully fabricated and packaged 94 student-designed chips India on the Global Stage India has been active in shaping global AI conversations. It has played key roles at forums such as the Global Partnership on AI (GPAI) where it has served as Council Chair and during its G20 Presidency in 2023. Last year, India co-chaired the Paris AI Action Summit with France.India - AI Impact Summit 2026 India hosted the India-AI Impact Summit 2026 from 16–21 February 2026 at New Delhi. For the first time, the global AI summit series took place in the Global South. The shift signals a broader move toward a more inclusive global AI dialogue. The Summit concluded as a historic global convergence, establishing India as a global hub for artificial intelligence innovation, governance, partnership, and inclusive growth. The five-day event, the largest of its kind hosted by any developing nation, brought together leaders from governments, industry, academia, civil society, and startups under the theme “Sarvajan Hitaya, Sarvajan Sukhaya” (Welfare for all, Happiness of all). The Summit witnessed extensive participation, with approximately 6 lakh attendees in person and over 9 lakh cumulative views through live virtual streaming. Delegations from more than 100 countries and 20 international organizations participated in the proceedings. *******