What Happened
- Ahead of the India AI Impact Summit 2026, the MeitY Secretary outlined India's AI strategy, stating that AI can create more jobs than it displaces.
- India is pursuing a full-stack, impact-driven AI strategy spanning energy, infrastructure, chips, models, and applications, with its technology services sector central to scaling AI.
- On the semiconductor front, India's newly established manufacturing units have begun commercial chip production, with all 10 approved units under India Semiconductor Mission (ISM) 1.0 now operational.
- The government plans to launch India Semiconductor Mission 2.0 to sustain the domestic chip industry's momentum for an additional five to six years.
- New pathways from education to employment are being developed to address AI-era workforce transitions.
Static Topic Bridges
IndiaAI Mission (2024)
The IndiaAI Mission was approved by the Union Cabinet in March 2024 with a budget outlay of Rs 10,371.92 crore over five years. It is structured around seven deployment pillars aimed at building a comprehensive AI ecosystem in India. The mission represents a significant scaling-up from NITI Aayog's 2018 National Strategy for Artificial Intelligence, which first articulated the "AI for All" vision identifying five priority sectors: healthcare, agriculture, education, smart cities, and transportation.
- Total outlay: Rs 10,371.92 crore (5-year period from 2024)
- Union Budget 2024-25 allocated Rs 551.75 crore specifically for IndiaAI Mission
- Seven pillars: (1) Compute capacity, (2) Datasets, (3) Innovation centres, (4) Application development, (5) Future skills, (6) Startup financing, (7) Safe and Trusted AI
- Compute infrastructure: 18,693 GPUs planned; initial phase made 10,000 GPUs available at a subsidized rate of Rs 65 per hour
- India's AI Governance Guidelines (2025) released under the mission, structured around "Seven Sutras" including Trust as Foundation, People First, Fairness & Equity, Accountability, and Innovation over Restraint
- NITI Aayog projected India's AI-driven tech services sector could reach US$850 billion by 2035
Connection to this news: The MeitY Secretary's statements on AI job creation directly reflect the IndiaAI Mission's "Future Skills" and "Application Development" pillars, which aim to make AI a net positive for India's workforce rather than a displacement threat.
India Semiconductor Mission (ISM)
The India Semiconductor Mission was established to build a domestic semiconductor manufacturing ecosystem. Under ISM 1.0, the government approved 10 projects with cumulative investments of approximately Rs 1.60 lakh crore across 6 states. The mission operates under MeitY and provides fiscal support of up to 50% of project costs for semiconductor fabs and up to 50% for display fabs, with additional incentives for ATMP (Assembly, Testing, Marking, and Packaging) units.
- Key approved projects under ISM 1.0:
- Tata Electronics: Semiconductor fab at Dholera, Gujarat; ATMP unit at Jagiroad, Assam (targeting 48 million chips/day)
- Micron Technology: US$2.75 billion ATMP plant at Sanand, Gujarat (DRAM and NAND products)
- CG Power (Murugappa Group): ATMP at Sanand, Gujarat (partnership with Renesas and Stars Microelectronics); investment of Rs 7,600 crore; capacity of 15 million chips/day
- Four additional semiconductor units approved on 12 August 2025 with outlay of Rs 4,600 crore
- ISM 2.0 planned to extend support for 5-6 additional years
- Commercial chip production has commenced across multiple facilities as of early 2026
- India's semiconductor market estimated to reach US$64 billion by 2026 (from US$27 billion in 2021)
Connection to this news: The MeitY Secretary's reference to semiconductor ambitions aligns with ISM's transition from construction phase to commercial production, marking India's entry into actual chip manufacturing for the first time.
AI and Employment — Fourth Industrial Revolution Dynamics
The relationship between AI and employment is a critical policy question globally. The World Economic Forum's Future of Jobs Report projects that AI and automation will displace 85 million jobs globally by 2025 while creating 97 million new roles, resulting in a net positive of 12 million jobs. India, with its large IT services workforce of approximately 5.4 million people, is particularly exposed to AI-driven transformation but also stands to benefit from AI-augmented service delivery.
- India's IT-BPM sector revenue: approximately US$254 billion (FY2024)
- IT services workforce: ~5.4 million direct employees
- AI-related job postings in India grew significantly between 2022-2025, particularly in data science, ML engineering, and AI ethics roles
- Key policy responses: IndiaAI FutureSkills programme (under IndiaAI Mission), National Education Policy 2020's emphasis on digital and computational skills, Skill India Digital Hub
- NASSCOM estimates that India needs to upskill 1-2 million workers in AI-related competencies by 2027
- The "AI for All" framework emphasizes inclusive AI deployment that creates opportunities across economic strata rather than concentrating benefits
Connection to this news: The MeitY Secretary's assertion that AI will create more jobs than it takes reflects India's policy stance of positioning itself as an AI services and deployment hub, leveraging its existing IT workforce advantage while investing in upskilling programmes.
Key Facts & Data
- IndiaAI Mission budget: Rs 10,371.92 crore over 5 years (approved March 2024)
- GPU infrastructure target: 18,693 GPUs; subsidized rate: Rs 65/hour
- ISM 1.0: 10 projects approved, ~Rs 1.60 lakh crore cumulative investment, across 6 states
- Tata Assam ATMP target: 48 million chips/day; CG Power Sanand: 15 million chips/day
- Micron Sanand plant investment: US$2.75 billion
- India AI Impact Summit: 16-20 February 2026, Bharat Mandapam, New Delhi
- NITI Aayog's AI for All strategy: published June 2018; identified 5 priority sectors
- India's AI Governance Guidelines (2025): "Seven Sutras" framework