AI to Transform India's IT Sector, Hit $400 Billion by 2030: PM Modi

In a special interview with ANI's text service, the Prime Minister spoke about the growing impact of Artificial Intelligence (AI) on the IT industry and the government's strategy to strengthen the sector.

"India's IT sector has been the backbone of our services exports and a key driver of economic growth. AI presents both a tremendous opportunity and a challenge for this sector. AI market projections show India's IT sector could reach $400 billion by 2030, driven by new waves of AI-enabled outsourcing and domain-specific automation," he said.

PM Modi emphasised that AI should be seen as an enabler rather than a disruptor.

"The fundamental shift is that AI isn't replacing the IT sector. It is transforming it. While general-purpose AI tools have become widespread, enterprise-grade AI adoption is still concentrated in specific sectors, and incumbent IT firms continue to play crucial roles in solving complex business problems," he said.

The Prime Minister further stated that the government has adopted a comprehensive approach through the 'IndiaAI Mission' to build a strong domestic AI ecosystem.

He said, "To enable a strong Indian AI ecosystem, the government has responded with a comprehensive strategy centred on the IndiaAI Mission. We've already exceeded our initial target of GPUs and we are committed to do more, to provide affordable access to world-class AI infrastructure for startups and enterprises."

Highlighting institutional initiatives, PM Modi said the government has established four Centres of Excellence in Healthcare, Agriculture, Education and Sustainable Cities, along with five National Centres of Excellence for Skilling to equip the workforce with industry-relevant AI expertise.

"We want our IT sector to lead not just in service delivery but in building AI products, platforms, and solutions that work for India and the world," PM Modi added.

India is expected to add another 20,000 GPUs, taking the total beyond 38,000 GPUs, to strengthen the country's AI compute infrastructure. Under the IndiaAI Mission, these high-end GPUs are available at about Rs 65 per hour, nearly one-third of the global average cost.

The next phase of India's AI strategy will focus on design, research, and development to build solutions tailored to India's needs. He also indicated that AI-related investments are likely to exceed USD 200 billion at the summit, including USD 90 billion already committed, with discussions ongoing with major companies regarding further investments.

- ANI