Indian Economy News

India-made graphics processing units (GPUs) to be tech demo-ready by 2025, production by 2029

Government sources revealed that India’s first made-in-India graphics processing units (GPUs) are expected to be ready for technology demonstrations by the end of 2025. These demonstrations aim to assess the GPUs' capabilities in advanced functions such as artificial intelligence (AI), machine learning, scientific simulations, and complex mathematical operations beyond standard graphics rendering. Production readiness is projected for 2029 under the Rs. 10,372 crore (US$ 1.21 billion) IndiaAI Mission. The Ministry of Electronics and Information Technology plans to engage with global chip makers later this year to advance the project. Union Minister for Electronics and Information Technology, Mr. Ashwini Vaishnaw confirmed efforts to develop indigenous chipsets within three to four years.
In the first bidding round, 10 firms were empanelled to supply 18,693 GPUs, including models like Nvidia H100, H200, and Advanced Micro Devices’ (AMD) MI325 and MI300X. Notable participants include Jio Platforms, Tata Communications, and Yotta Data Services. The average GPU compute unit rate was found to be ~Rs. 115.85 (US$ 1.36) per hour (low-end) and ~Rs. 150 (US$ 1.76) per hour (high-end), compared to the global benchmark of Rs. 213.44 - 256.12 (US$ 2.5–3) per hour. The government plans to offer a 40% discount to startups, academic institutions, and students, with additional concessions for users committing to long-term use (six months or more). Global players have expressed interest in supplying an additional 15,000–18,000 GPUs in the second bidding phase. Empanelment for new suppliers now occurs quarterly. India is nearing the 50,000 GPU limit set by the United States (US), and discussions to ease this cap are reportedly part of ongoing India–US trade negotiations.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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