India’s AI strength lies in the applications layer; renewable energy capacity an advantage for data centres: Union Minister Mr. Ashwini Vaishnaw
- IBEF
- August 21, 2026
India’s key strength in artificial intelligence (AI) lies in the applications layer, supported by its established information technology ecosystem and ability to develop technology solutions for enterprise requirements. Nearly 80% of startups emerging in India are developing AI-based solutions, highlighting the growing adoption of AI across the technology ecosystem. Data centres are also emerging as a key growth area, with India’s renewable energy capacity providing an advantage for supporting energy-intensive digital infrastructure. Around 250 GW of India’s power generation capacity currently comes from renewable sources. India has also developed capabilities across finished electronics products, modules, sub-modules and components. The country now accounts for 20% of the global semiconductor design workforce, while advanced chip-design tools have been provided to 318 universities.
India’s expanding digital and physical infrastructure is further supporting technology-led growth. Around 90% of the country has access to 5G, making India the world’s second-largest 5G ecosystem, while digital public infrastructure is enabling startups to develop new solutions and expand access to technology. Railway infrastructure has also strengthened, with freight volumes increasing from around 1,000 million tonnes a decade ago to 1,670 million tonnes currently. Improved railway operations are helping enhance logistics efficiency and competitiveness for industries. These developments form part of India’s broader growth strategy focused on physical, digital and social infrastructure, inclusive growth, innovation and manufacturing.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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