The Indian Government has approved an outlay of Rs 10,372 crore for five years for the India AI Mission. It is targeted at nurturing innovation in AI through public-private partnerships (PPPs).
From this outlay, nearly Rs 2,000 crore has been set aside for financing deeptech startups, with a focus on accelerating R&D in these firms.A cornerstone of this effort is the IndiaAI Compute Capacity, envisioned to erect a cutting-edge, scalable AI computing infrastructure by deploying over 10,000 Graphics Processing Units (GPUs) through strategic public-private collaborations.
The initiative will provide the much-needed financial assistance to deeptech startups in the country, an area which entreprenuers in AI business always pointed out that it has been a major roadblock for innovation in the sector.
According to IT Minister Rajeev Chandrasekhar “AI is going to be the kinetic enabler for India’s digital economy. Prime Minister Modi ji has always said that India is going to fully exploit the power of AI for the benefit of its citizens and for the expansion of its economy.This financial outlay will catalyze India’s AI ecosystem and position it as a force shaping the future of AI for India and for the world. This will benefit states like Kerala which, for years, missed the bus in creating a robust tech ecosystem. There is immense potential among Young Indians in Kerala and with this financial outlay will help realise their ambitions.”
AI Mission Approval by India to Accelerate Deep Tech Startup Growth
Industry estimatesthat there are around 3,000 deeptech startups presently operating in India. Less than 20 per cent of these have been able to secure proper financial support.
Industry stakeholders quote that the Rs 2,000-crore budgetary allocation for the sector is a welcoming start towards building a catalytic investment environment in the country.
Experts suggests that the investor community will be keen on getting clarity in areas such as regulations, and data sharing policies. In July 2023, the government announced the Draft National Deep Tech Startup Policy (NDTSP) for public consultation. Its goal was to enable startups overcome challenges relating to funding, access to the right talent, and scaling their research and development operations
