Executive Summary:
The Ministry of Electronics and Information Technology addresses the use of Artificial Intelligence (AI) in industries, highlighting India's growing AI ecosystem and the launch of the IndiaAI Mission in 2024. The mission aims to democratize AI development and use for real-world problem-solving through seven key pillars. The response outlines government initiatives to promote AI adoption across various sectors in accordance with applicable laws and best practices.
Key Points / Main Content:
* **AI Ecosystem in India:**
* India's tech sector, including AI, is projected to surpass $280 billion in annual revenue this year and employs 6 million people.
* There are 1,800 Global Capability Centres, with 500 focused on AI, and 1.8 lakh startups in India, with 89% of new startups being AI-powered.
* India scores 2.45 out of 4 on the NASSCOM AI Adoption Index, with 87% of enterprises actively adopting AI.
* Key sectors adopting AI include Industrial Automotive, Consumer Packaged Goods, Retail, Banking Financial Services Insurance, and Healthcare, contributing 60% of AI's potential value-add.
* 26% of Indian companies have achieved AI maturity at scale across operations.
* India is ranked among the top countries in AI skills, capabilities, and policies and is the second-largest contributor to GitHub AI projects.
* **IndiaAI Mission (Launched in 2024):**
* Aims to make AI accessible to all and establish a robust and inclusive AI ecosystem.
* **Pillar 1: IndiaAI Compute Capacity:** Provides high-end GPUs to MSMEs and startups at affordable costs.
* **Pillar 2: IndiaAI Foundation Models:** Develops India's own Large Multimodal Models (LMMs) trained on Indian datasets and languages.
* **Pillar 3: AIKosh:** Develops large datasets for training AI models via a unified data platform.
* **Pillar 4: IndiaAI Application Development Initiative:** Develops AI applications for specific challenges in sectors such as climate change, healthcare, and agriculture.
* **Pillar 5: IndiaAI FutureSkills:** Develops AI-skilled professionals and establishes Data and AI Labs in Tier 2 and Tier 3 cities.
* **Pillar 6: IndiaAI Startup Financing:** Provides financial assistance to AI startups.
* **Pillar 7: Safe Trusted AI:** Balances innovation with strong governance frameworks for responsible AI adoption.
* **Government Promotion of AI:**
* The Government promotes the adoption of AI through various Central and State government departments and agencies.
* AI adoption is promoted in alignment with applicable laws, regulations, and best practices.
Impact Analysis
* **MSMEs and Startups:**
* Impact: Increased access to high-end compute power (GPUs) at affordable costs through IndiaAI Compute Capacity. Opportunity for financial assistance through IndiaAI Startup Financing.
* Action Required: Leverage available resources and funding to develop and implement AI solutions.
* **AI Professionals and Students:**
* Impact: Increased opportunities for skill development in the AI domain through IndiaAI FutureSkills. Potential access to Data and AI Labs in Tier 2 and Tier 3 cities.
* Action Required: Engage in training programs and educational initiatives to enhance AI skills.
* **Researchers and Developers:**
* Impact: Access to large datasets through AIKosh and opportunities to contribute to the development of India's own Large Multimodal Models (LMMs).
* Action Required: Utilize available data and platforms to develop innovative AI models and applications.
* **Government Departments and Agencies:**
* Impact: Guidance and support in promoting AI adoption in alignment with applicable laws, regulations, and best practices.
* Action Required: Implement AI solutions responsibly and ethically within their respective domains.
* **Indian Companies:**
* Impact: Encouragement and support for incorporating AI into their operations, with a focus on achieving AI maturity at scale.
* Action Required: Explore and adopt AI technologies to enhance efficiency, innovation, and competitiveness in the market.
Key Entities Referenced
Artificial Intelligence AI: A field of computer science focused on creating machines capable of performing tasks that typically require human intelligence.
Ministry of Electronics and Information Technology: The Indian government ministry responsible for IT policy, development of the electronics industry, and promotion of e-governance.
Narendra Modi: The current Prime Minister of India.
IndiaAI Mission: A government initiative launched in 2024 to promote the development and adoption of AI in India.
NASSCOM AI Adoption Index: An index developed by NASSCOM to measure the adoption of AI by enterprises in India.
GitHub: A web-based platform used for version control and collaboration in software development. It is a large host of AI projects.
MSMEs: Micro, Small and Medium Enterprises
Tier 2 and Tier 3 cities across India: These are cities in India that are smaller and less economically developed than Tier 1 cities, representing a focus for expanding AI education and infrastructure.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 4388
TO BE ANSWERED ON: 20 .08.2025
USE OF AI IN INDUSTRIES
4388. DR. INDRA HANG SUBBA:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) whether the Government has credible data regarding use of Artificial Intelligence (AI) in
various sectors of the industries and if so, the details thereof;
(b) the fraction of manufacturing that industry has successfully incorporated AI;
(c) the details of the India's projected growth for the next decade in AI in manufacturing market;
and
(d) whether the Government has laid SOPs for the use of AI in manufacturing industries and if so,
the details thereof?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (d): In line with Hon’ble Prime Minister Shri Narendra Modi's vision, the Government is
making technology accessible to all. The focus is on democratizing the development and use of
Artificial Intelligence (AI) for real-world problems, ultimately improving lives across various
sectors.
AI ecosystem in India at present:
• Fast-growing India’s tech sector, including AI, is projected to surpass $280 billion in annual
revenue this year
• 6 million+ people are employed in this sector
• 1,800+ Global Capability Centres, including 500+ focused on AI
• ~1.8 lakh startups in India; 89% of new startups in India last year were AI-powered
• India scores 2.45 out of 4 on the NASSCOM AI Adoption Index, indicating that 87% of
enterprises are actively adopting AI.
• Sectors leading in AI adoption are Industrial & Automotive, Consumer Packaged Goods (CPG)
and Retail, Banking Financial Services & Insurance (BFSI), and Healthcare, contributing
~60% of AI’s potential value-add.
• 26% of Indian companies have achieved AI maturity at scale across operations, according to
the BCG survey.
• Global rankings such as Stanford AI rankings placing India among the top countries in AI
skills, capabilities, and policies to use AI• India, second-largest contributor to GitHub AI projects, testament to its vibrant developer
community.
Building on this strong foundation, the IndiaAI Mission was launched in 2024 to make AI
accessible to all. It establishes a robust and inclusive AI ecosystem aligned with India's
development goals. Seven pillars of IndiaAI mission are as follows:
1) IndiaAI Compute Capacity: It aims to provide high-end compute power (GPUs) to all,
including MSMEs and startups, at an affordable cost.
2) IndiaAI Foundation Models: To develop India’s own Large Multimodal Models (LMMs)
trained on Indian datasets and languages. This is to ensure sovereign capability and global
competitiveness in generative AI.
3) AIKosh: To develop large datasets for training AI models. AIKosh is a unified data platform
integrating datasets from government and non-government sources.
4) IndiaAI Application Development Initiative: This pillar aims to develop AI applications for
India specific challenges in sectors such as climate change and disaster management,
healthcare, agriculture, governance, and assistive technologies for learning disabilities.
5) IndiaAI FutureSkills: To develop AI skilled professionals in India by increasing the number
of graduates, post-graduate and PhDs in AI domain. It also envisions setting up Data and AI
Labs in Tier 2 and Tier 3 cities across India.
6) IndiaAI Startup Financing: To provide financial assistance to AI start-ups.
7) Safe & Trusted AI: To balance innovation with strong governance frameworks to ensure
responsible AI adoption.
The Government, through various Central and State government departments and agencies, is
promoting the adoption of Artificial Intelligence (AI) in alignment with applicable laws,
regulations, and best practices.
*******