India Builds AI Infrastructure for Global Leadership, Says Nasscom

India is strategically developing a comprehensive AI infrastructure layer across the value chain, mirroring its digital success. The focus includes making telecom and power ecosystems AI-ready while building indigenous capabilities. Nasscom highlights India's leadership in AI deployment and applications, with significant investments flowing into data centres. The upcoming India AI Impact Summit aims to showcase the country's frugal innovations to the world, particularly the Global South.

Key Points: India's AI Infrastructure Push for Large-Scale Adoption

  • Building AI-ready telecom & power networks
  • Leading in AI deployment & applications
  • Using AI to optimise infrastructure
  • Seeking tax clarity for data centres
3 min read

India gearing up AI Infrastructure for large-scale adoption: Nasscom

Nasscom outlines India's strategy to build robust AI infrastructure, from data centres to telecom, aiming for global leadership and frugal innovation.

"The same lens India is applying to build out its AI infrastructure layer. - Ashish Aggarwal"

By Shailesh Yadav, New Delhi, January 12

India is strategically positioning itself to build robust AI infrastructure across the value chain, mirroring the success it achieved in the digital space, according to Ashish Aggarwal, Vice President of Public Policy at Nasscom.

Speaking to ANI ahead of the India AI Impact Summit, Aggarwal drew parallels between India's digital infrastructure revolution and its current AI ambitions. "The same lens India is applying to build out its AI infrastructure layer," he said, explaining that this encompasses making telecom networks AI-ready, ensuring the power ecosystem can support AI demands, and building indigenous AI capabilities across the entire value chain.

Aggarwal noted that India is already at the forefront of AI deployment and maintains a strong position in AI applications. "From an industry point of view, we are already leading in the AI deployment space, and we are also very strong in the AI application space," he said.

The country is seeing significant investment in data centres, while state governments are being asked to accurately estimate and project power demand. The focus is also on ensuring telecom infrastructure is robust enough to handle AI workloads.

"The second phase will see how we can use AI itself to optimise this infrastructure, whether it is in terms of power infrastructure, reliability, scale, optimisation, and similarly on the telecom side," Aggarwal explained.

Looking ahead to the India AI Impact Summit, Aggarwal expressed optimism about showcasing Indian innovation on the global stage. "India, as we believe, is a leader in frugal innovation, and we have seen a lot of that," he said. "Once we build for India and we can showcase for India, it is going to be definitely important for the world and most definitely for the global south."

Addressing industry expectations in the Union Budget 2026, Aggarwal emphasised that policymaking has become a continuous cycle, citing the recent GST reforms as an example. Rather than seeking major concessions, the IT industry is focused on operational improvements.

"Given so much of investments are happening in the data centre space, we would like tax clarity on some rules around attribution of permanent establishment," he said. Such clarification would significantly benefit the industry's growth trajectory.

The industry is also keen on promoting the expansion of Global Capability Centres in India. "International taxation continues to be an area where we can do more simplification, more clarification and build more capacity so that assessments can be streamlined and made faster," Aggarwal noted.

He praised the government's initiative on faceless assessments, which is now stabilising, and added that most industry recommendations focus on addressing operational challenges rather than seeking big-ticket concessions.

- ANI

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Reader Comments

S
Sarah B
Interesting parallels drawn with the digital revolution. The focus on using AI to optimize the very infrastructure it runs on is smart. Hope the policy framework keeps pace with the tech to avoid bottlenecks.
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Priyanka N
Building for India first is the correct approach. Our challenges are unique - scale, diversity, cost. Solutions that work here will be a blueprint for so many other nations. The global south comment is spot on. Exciting times!
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Rahul R
Good to see the talk about tax clarity for data centres. These are capital-intensive projects. Uncertainty can scare away investment. Streamlining assessments will make India a more attractive destination for AI infra.
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Aman W
While the vision is great, I hope we are also investing heavily in our own foundational models and compute power. Relying entirely on foreign tech for the core layers will limit our true potential. We need our own 'AI swadeshi' movement.
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Kavya N
The power demand projection is crucial. AI data centres are power-hungry. We need a clear plan for green energy integration from the start. Can't build the future on unsustainable foundations. ♻️
M
Michael C
Promoting Global Capability Centres is a strategic move

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