Union Minister for Electronics and IT Ashwini Vaishnaw stated on Sunday that India should position itself as a key global hub for artificial intelligence in the upcoming years, with the Indian IT sector’s shift towards AI playing a crucial role. His words came shortly after the Union Budget 2026-27 announced the beginning of India Semiconductor Mission (ISM) 2.0.
In an interview with NDTV, Vaishnaw stated that semiconductors are a “multi-year journey” and reaffirmed that India has been gradually expanding its skills in cutting-edge technology and artificial intelligence. Through industry-led research and training facilities, the government hopes to enhance supply chains, create full-stack Indian intellectual property, and develop semiconductor equipment and materials under ISM 2.0. A provisional allocation of ₹1,000 crore has been allocated by the budget for the mission in FY27.
Vaishnaw also applauded the idea to grant a tax exemption till 2047 to international businesses that use Indian data centers to provide global cloud services, provided that they serve Indian clients through local reseller organizations.
The minister claims that these steps, along with India’s talent pipeline, stable policy environment, and the IT sector’s increasing emphasis on AI services, could push AI-related investment commitments above $200 billion. A powerful committee to coordinate enterprise, employment, and education needs in the services sector in the face of developing technology has also been recommended by the budget.
