The Ministry of Electronics and Information Technology (MeitY) announced on Saturday that as the Digital India programme completes 11 years on July 1, the government is pivoting towards artificial intelligence (AI) and semiconductor manufacturing. Investments worth Rs 1.64 lakh crore have been approved across 12 semiconductor projects, while a national AI ecosystem backed by over 45,000 GPUs is being established.
Next Phase of Digital India
According to a MeitY release, Digital India is entering its next phase with a stronger focus on frontier technologies after spending the past decade expanding digital infrastructure, financial inclusion and citizen services. "Having built the foundational layer of digital infrastructure, financial inclusion and citizen service delivery over its first decade, the programme is now anchoring itself in the frontier domains of Artificial Intelligence and semiconductor manufacturing, the two pillars that will define India's technological future and underpin the vision of Viksit Bharat 2047," the ministry said.
AI Infrastructure and Governance
The IndiaAI Mission, approved with an outlay of over Rs 10,372 crore, has established a shared compute facility with more than 45,000 GPUs to strengthen AI research and development. "At its foundation is the establishment of a shared compute facility with over 45,000 GPUs, creating the computational backbone for AI research and deployment at national scale," the release said. The government is supporting 15 large and small language models under the AI Foundation Model pillar, while AI Kosh now hosts more than 12,500 datasets, 307 AI models and 20 toolkits. AI Governance Guidelines released in November 2025 reaffirm India's commitment to developing AI that is "safe, inclusive and trustworthy."
Semiconductor Manufacturing Push
On semiconductors, the ministry said India has approved 12 manufacturing projects with an investment pipeline of around Rs 1.64 lakh crore, including one semiconductor fabrication unit, two compound semiconductor fabrication units and nine packaging units. "India's semiconductor ecosystem has moved decisively from policy to production," the ministry said. The India Semiconductor Mission 2.0, announced in the Union Budget 2026-27, will further strengthen domestic capabilities in semiconductor equipment, materials and indigenous intellectual property.
Electronics Manufacturing Growth
The investments in AI and semiconductors are helping transform India's electronics manufacturing sector, which has grown into a Rs 13 lakh crore industry. "The sector has grown into an industry valued at Rs 13 lakh crore, and electronics has emerged as India's third-largest export category," the ministry said. India is now the world's second-largest mobile phone manufacturer.
Digital Infrastructure Milestones
Broadband subscribers have reached 106.58 crore, BharatNet has connected 2.18 lakh gram panchayats with high-speed broadband, and 5G services now cover 99.9 per cent of districts across the country.
Startup Ecosystem
India's startup ecosystem recorded its strongest year in FY26, with over 55,200 new startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). Direct employment generated by recognised startups rose to 23.36 lakh. "Nearly 48 per cent of all recognised startups feature at least one woman director or partner, underscoring the inclusive character of India's innovation growth," the release added.
