AI Investment Boost: India Allocates $1.24 Billion for IndiaAI Mission to Drive Innovation and Economic Growth

India has allocated over Rs 10,300 crore ($1.24 billion) for the IndiaAI Mission, slated over the next five years, in a bid to bolster the country's artificial intelligence (AI) ecosystem, innovation, and entrepreneurship. The Union Cabinet, India's foremost decision-making body, approved the financial infusion, emphasising its potential to benefit citizens and contribute to economic expansion. The funds will be utilised to implement the IndiaAI Mission through a public-private partnership model, aiming to support AI startups and ensure ethical and responsible AI deployment. Deputy IT Minister Rajeev Chandrasekhar expressed confidence that this investment would catalyse India's AI ecosystem and position the country as a global leader in AI innovation, emphasising AI's role as a key enabler for India's digital economy. This initiative aligns with India's goal of leveraging AI to achieve its Viksit Bharat (developed India) vision by 2047 and supports its ambition to become a $5 trillion economy by 2027-2028. Additionally, Finance Minister Nirmala Sitharaman announced the establishment of a Rs 1 trillion ($12.08 billion) corpus to boost India's digital economy during Budget 2024-25, aiming to provide long-term financing with low or nil interest rates, signaling a golden era for India's tech-savvy youth.