Lok Sabha Question No. 585 (UNSTARRED), answered on 2025-07-23
Subject: Impact of US restriction on AI Hardware Exports
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Shri Asaduddin Owaisi

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 585

TO BE ANSWERED ON: 23.07.2025

## IMPACT OF US RESTRICTION ON AI HARDWARE EXPORTS

## 585. SHRI ASADUDDIN OWAISI:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether the Government is aware of the recent US export regulations on Artificial Intelligence (AI)  hardware  that  categorize  India  under  Tier  2,  restricting  the  import  of  high  performance computing GPUs;
- (b)  if  so,  the  details  thereof  including  the  expected  impact  of  these  restrictions  on  India's  AI development and related industries;
- (c) whether the Government has engaged with the United States to seek reclassification of India or a waiver from these restrictions, if so, the details thereof; and
- (d) the steps being taken by the Government to ensure that these regulations do not hinder India's AI initiatives, including the India AI Mission and other high-tech development programmes?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA)

(a) to (d ): On 15 th January 2025, United States Department of Commerce issued AI Diffusion Rule which provided for export control and licensing regulations.  On 13 th May, 2025 the rule was rescinded.

India's  AI  strategy  is  based  on  the  Hon'ble  Prime  Minister's  vision  to  democratize  the  use  of technology.  It  aims  to  address  India  centric  challenges,  create  economic  and  employment opportunities for all Indians.

## AI ecosystem in India at present:

India has a strong information technology ecosystem. It generates annual revenues of more than 250 billion dollars and provides employment to more than 6 million people.

Global rankings such as Stanford AI rankings place India among the top countries in AI skills, capabilities,  and  policies  to  use  AI.  India  is  also  the  second-largest  contributor  to  GitHub  AI projects, showcasing its vibrant developer community.

## India's AI strategy:

India's AI strategy aims to position India as a global leader in artificial intelligence. Government launched  IndiaAI  mission  in  March  2024.  It  is  a  strategic  initiative  to  establish  a  robust  and inclusive AI ecosystem aligned with India's development goals.

The IndiaAI Mission comprises of the following 7 key pillars:

- IndiaAI  Compute  Capacity: It  aims  to  provide  high-end  compute  power  (GPUs)  to  all, including MSMEs and startups, at an affordable cost.
- 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.
- AIKosh: To develop large datasets for training AI models. AIKosh is a unified data platform integrating datasets from government and non-government sources.
- 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.
- IndiaAIFutureSkills: 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.
- IndiaAI Startup Financing: To provide financial assistance to AI start-ups.
- Safe & Trusted AI: To balance innovation with strong governance frameworks to ensure responsible AI adoption.

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