India seeks to bolster economy with $1.24B investment for AI development

India is making a significant investment of $1.24 billion for the development of artificial intelligence (AI) in the country. The financial infusion, approved by the Union Cabinet, aims to bolster India’s AI ecosystem, foster innovation, and promote entrepreneurship. Through a public-private partnership model, the funding will support the implementation of the IndiaAI Mission and provide access to funds for AI startups. The goal is to position India as a global leader in AI while ensuring the ethical and responsible deployment of AI technologies. With plans to become a $5 trillion economy by 2027-2028, India sees AI as a key catalyst for achieving its developmental goals. The investment comes as Mukesh Ambani, India’s richest man, announced his company’s plan to complete AI transformation across all businesses by 2024. The government’s focus on AI development aligns with India’s aim to leverage emerging technologies for economic growth and digital transformation. A recent report by Ernst & Young highlighted the potential of AI to have a substantial impact on India’s GDP, contributing an additional 0.9% to 1.1% in annual CAGR over seven years. The Indian government also plans to release a draft regulatory framework for AI by July to ensure responsible use while promoting economic growth. Overall, this investment marks a significant leap in India’s journey towards becoming a global leader in AI innovation.