AI to Power India IT to $400B by 2030: PM Modi

With the AI-India Impact Summit underway in New Delhi, Prime Minister Narendra Modi said Artificial Intelligence (AI) is transforming rather than replacing India’s IT sector, positioning it to potentially reach $400 billion by 2030. The summit marks the first global AI gathering of this scale hosted in the Global South.

In an interview with ANI, the Prime Minister described AI as both an opportunity and a challenge for India’s technology industry, which has long been the backbone of the country’s services exports and economic growth. He noted that market projections indicate the IT sector could expand to $400 billion by the end of the decade, fueled by AI-driven outsourcing and domain-specific automation.

Modi emphasized that AI should be viewed as an enabler. While general-purpose AI tools are now widely accessible, enterprise-level adoption remains concentrated in select sectors. Established IT firms, he said, continue to play a critical role in addressing complex business challenges and integrating AI into scalable solutions.
To strengthen the domestic ecosystem, the government has launched the IndiaAI Mission, a comprehensive strategy to boost AI capabilities. According to the Prime Minister, India has already surpassed its initial GPU deployment targets and plans to expand further, ensuring affordable access to high-end computing infrastructure for startups and enterprises.

India is set to add 20,000 more GPUs, taking the total beyond 38,000. Under the mission, GPU access is being offered at around Rs 65 per hour—about one-third of the global average cost.

The government has also established four Centres of Excellence in Healthcare, Agriculture, Education and Sustainable Cities, along with five National Centres of Excellence for Skilling to prepare a future-ready workforce.
Modi added that AI-related investments discussed at the summit could exceed $200 billion, including $90 billion already committed, with further negotiations ongoing.