India's Investment in Artificial Intelligence (AI)
India is on track to become a major player in the global AI sector, having surpassed the $20-billion mark in cumulative and new investment commitments by 2025, according to the Ministry of Electronics and Information Technology.
Private Sector Investments
- India's cumulative private investment in AI from 2013 to 2024 reached $11.1 billion, with government investments raising the total to $12.3 billion.
- Comparable to Canada and Israel (around $15 billion), India surpasses France ($11 billion), South Korea ($8.96 billion), Japan ($5.9 billion), and Australia ($3.88 billion).
Major Announcements Boosting AI in India
- Google: $15-billion AI data hub in Visakhapatnam, the largest outside the US.
- TCS: Plans to invest $5-7 billion in AI data centers over seven years.
- Reliance: Mega plans in AI, though numbers undisclosed.
- AWS: $12.7 billion investment in cloud infrastructure by 2030, including AI-ready resources.
- Microsoft: Pledged $3 billion investment.
If these projects proceed, AI investments in India could potentially double.
Private Equity Investments
- AI startups saw investments surpassing $5.3 billion by October 2025, with generative AI contributing $2.37 billion (Tracxn data).
Government Support
- The government has allocated $1.2 billion to support private sector AI GPU infrastructure and LLM companies, with several projects already underway.
Global AI Investment Landscape
- United States: Leads with $471 billion in private sector investment, and an additional $175 billion from government and private-public initiatives.
- China: Cumulative private investment stands at $119 billion, with government support adding $57.8 billion.
- Saudi Arabia: Plans to invest $100 billion to become the Middle East's AI hub.