India’s ambitions to launch its own foundational AI model over the next 10 months has been backed by an outlay of ₹2,000 crore in the Union Budget 2025.

The allocation is considerably higher than the ₹551 crore assigned to the Mission in the Budget 2024. Last year, the Cabinet announced an allocation of ₹10,300 crore for the IndiaAI Mission over five years. Piyush Goyal, Minister of Commerce and Industry, had talked of developing 10,000 or more Graphics Processing Units (GPUs).

Reacting to the announcement this year, Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) said, “The allocation of ₹2,000 crore for the AI Mission is a practical step towards establishing India’s leadership in artificial intelligence. With the GPU program already decided and 10 players shortlisted, we are positioned to make significant advancements.”

Similarly, Omir Kumar, Policy Analyst at the Centre for Responsible AI (CeRAI), said the budgetary allocation is the right step in that direction.

“Given how Indian intends to build it’s own AI foundation models, we can expect the Mission to support universities and industry to build such models. This support would include providing the required compute and financial assistance.”

However, Sanchit Vir Gogia, Chief Analyst and CEO at Greyhound Research, viewed the Budget as “not technology-oriented.”

“Considering where we are today, the ₹2,000 crore allocation is enough to lay down the bedrock of GPU infrastructure required to start work by Indian AI startups. Typically, budget announcements for such missions are spread out over 5-7 years so the allocation does not come as a surprise and should not impact the Mission overall. Looking at the entire Budget, it’s a technology-friendly budget but not technology-oriented.” he said.

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