Lok Sabha Question No. 171 (STARRED), answered on 2026-02-11
Subject: Investments in Artificial Intelligence
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA STARRED QUESTION NO. *171

TO BE ANSWERED ON: 11.02.2026

## INVESTMENTS IN ARTIFICIAL INTELLIGENCE

## *171.    PROF. SOUGATA RAY:

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

- (a) the details of India's hurdles in translating research results of Artificial Intelligence (AI) into commercial, market-ready products;
- (b)  whether  India  is  aiming  to  achieve  capturing  10  per  cent  of  the  $700  billion  global  space economy by 2030 spanning  Artificial  Intelligence,  space  technology,  quantum  computing  and biotechnology;
- (c) if so, the details thereof along with the measures started to achieve the target;
- (d) whether it is true that deep tech funding in India saw a 77 per cent drop with a 60 per cent reduction in the investor pool;
- (e)  if  so,  the  details  thereof  along  with  the  steps  taken  by  the  Government  to  encourage  the investments in the sector;
- (f) the details of India's gross expenditure on Research & Development since the last three years; and
- (g)  whether  the  R&D  share  in  the  Gross  Domestic  Product  (GDP)  is  significantly  lower  than competitors and if so, the details thereof?

## ANSWER

MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)

- (a) to (g):  A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN THE REPLY TO LOK SABHA STARRED QUESTION NO. *171 FOR 11.02.2026 REGARDING INVESTMENTS IN ARTIFICIAL INTELLIGENCE

……..

(a): India's innovation ecosystem exhibits strong academic research output in AI and related deep technologies. In the Stanford Global AI Vibrancy 2025 report, India was ranked 3 rd in the world for  AI  competitiveness and ecosystem vibrancy. India is also the second-largest contributor to GitHub AI projects, showcasing its vibrant developer community.

## IndiaAI Mission:

In March 2024, Government of India launched IndiaAI mission with outlay of Rs 10,372 Cr for development of the overall AI ecosystem in the country. In less than 24 months, India AI Mission has set up a foundation for development of AI ecosystem in the country:

- More than 38 thousand GPUs for common compute facility have been onboarded, which are being provided to Indian start-ups and academia at an affordable rate.
- Twelve teams have been shortlisted for development of indigenous foundational models or Large Language Models.
- Thirty applications have been approved for developing India specific AI applications.
- More than 8000 undergraduate students, 5000 post graduate students and 500 PhD students are being supported for talent development.
- 27 India Data and AI labs have been established and 543 more have been identified.

India is actively participating in shaping global debate on development, usage and safety of AI. India was the founder chair of Global Partnership on Artificial Intelligence (GPAI). India is hosting the India AI Impact Summit 2026 from 16 -20 th February 2026 at New Delhi. For the first time, the global AI summit series will take place in the Global South. The shift signals a broader move toward a more inclusive global AI dialogue.

## Private Sector Investment in AI

Encouraged by the Government's initiatives, the private sector is increasingly investing in AI in India. According to the Stanford AI Index Report 2025, India's cumulative private investment in AI from 2013 to 2024 reached approximately $11.1 Billion.

Google  has  recently  announced  the  establishment  of  an  Artificial  Intelligence  (AI)  Hub  in Visakhapatnam (Vizag), Andhra Pradesh. This investment of approximately $15 Billion dollars marks Google's largest investment in India to date.

Tata Group has announced a $11 Billion investment for an AI innovation city in Maharashtra.

A Research Symposium on 'AI and its Impact' is being organized during the IndiaAI Impact Summit 2026 to bring AI research closer to real-world decision-making by connecting researchers, policymakers and practitioners.

The  Government  is  strengthening  talent  development,  startup  support,  and  academia-industry collaboration to ensure research outcomes align with market needs.

(b) and (c): Government envisions to significantly grow India's share in the global space economy. Government is undertaking multiple policy measures and institutional reforms to grow India's technological and commercial footprint in space technology:

- The Government has notified the Indian Space Policy, 2023 , which clearly delineates the roles of  ISRO,  IN-SPACe  and  industry,  thereby  enabling  private  sector  participation  across  the entire space value chain.
- IN-SPACe has  been  established  as  a  single-window  agency  to  authorise,  promote  and supervise non-government space activities, including granting access to ISRO launch pads, testing facilities, technical infrastructure and expertise.
- The Government has approved a ₹ 1,000  crore Venture Capital  Fund  for  the  space  sector, anchored by IN-SPACe and managed by SIDBI Venture Capital, to provide growth and earlystage capital to Indian space startups.
- In addition, IN-SPACe has launched a ₹ 500 crore Technology Adoption Fund to help startups commercialise space technologies, scale manufacturing, and reduce dependence on imports.
- Foreign Direct Investment (FDI) norms in the space sector have been liberalised, permitting up to 100% FDI in satellite manufacturing and components, and enhanced limits in launch vehicles and satellite operations, to attract global capital and technology.
- Through New Space India Limited (NSIL) , the Government is expanding India's footprint in the global commercial launch market, particularly for small and medium satellites, leveraging India's cost -effective and reliable launch capabilities.
- National missions and policy programmes: Initiatives such as National Quantum Mission, IndiaAI Mission and RDI (Research, Development & Innovation) Fund schemes are designed to drive applied research, accelerate commercialization and attract private capital.
- Space  Biotechnology: Department  of  Biotechnology  (DBT)  and  Indian  Space  Research Organisation (ISRO) are collaborating in space biotechnology. The key priority areas in Space Biotechnology include microgravity research, space bio manufacturing, bioastronautics and space biology.

(d) and (e): The Government has taken following steps to boost funding and strengthen the Deep Tech sector:

- A National Deep Tech Startup Policy has been formulated to address challenges related to funding, infrastructure, intellectual property, regulatory clarity and technology commercialisation.
- Under the Startup India initiative, deep tech startups have been provided extended eligibility periods and higher turnover thresholds, enabling them to access tax benefits, exemptions and government support for a longer duration.
- The  Government  has  announced  a ₹ 1  lakh  crore Research,  Development  and  Innovation (RDI) Fund under the Anusandhan National Research Foundation (ANRF) to provide longterm, concessional financing for high-risk, high-impact deep tech projects and to crowd-in private investment.
- Sector-specific missions such as the India Semiconductor Mission, National Quantum Mission, IndiaAI Mission, and space sector reforms are creating stable demand, incentives and market opportunities for deep tech investments.
- Dedicated  funding  and  procurement-linked  support  mechanisms  such  as  the Technology Development Fund (TDF) and Innovations for Defence Excellence (iDEX) are supporting startups and MSMEs developing advanced and strategic technologies.
- The  Government  is  also  strengthening  the  incubation  and  innovation  ecosystem  through institutions such as Atal Innovation Mission, government-supported incubators, and technology transfer programmes linking academia, research institutions and industry.

(f)  and  (g): As  per  the  Economic  Survey  2025-26,  The  Gross  Expenditure  on  Research  and Development (GERD) as a percentage of Gross Domestic Product (GDP) is 0.64 per cent. India's ranking in the Global Innovation Index (GII) has risen significantly from 81 st in 2015 to 38 th in 2025.

Government  has  taken  the  following  measures  to  create  a  conducive  environment  and  spur investments in R&D:

- Establishment of the Anusandhan National Research Foundation (ANRF) under the ANRF Act,  2023.  The ANRF  is  intended  to  provide  strategic  direction,  competitive  funding opportunities and collaboration pathways across industry, academia and government
- Mission-driven national programmes such as the National Quantum Mission, the National Mission  on  Interdisciplinary  Cyber-Physical  Systems,  the  IndiaAI  Mission,  the  India Semiconductor Mission, and the National Green Hydrogen Mission. Each initiative focuses on building foundational scientific capability in sunrise domains, translating research into scalable industrial capacity
- To  finance  innovation  at  scale,  the  Government  also  announced  a  new  Research, Development and Innovation (RDI) Fund with a total outlay of ₹1 lakh crore.

Together, the ANRF, the national missions and the RDI Fund form a consolidated architecture for expanding India's GERD.

******