BENGALURU, Sept 27: Artificial intelligence, semiconductor manufacturing and quantum technology are emerging as major areas of focus for India’s next phase of technology infrastructure, with Finance Minister Nirmala Sitharaman calling for greater investment in hardware, skills and institutional capabilities.
Speaking at an event organised by the IIT Madras Alumni Association in Bengaluru on Saturday, Sitharaman said India needed to accelerate work on the infrastructure and ecosystem required to take advantage of emerging technologies.
She said investment in AI should not be viewed only through the number of technology companies listed on Indian stock exchanges. According to her, startups and emerging companies are already developing capabilities in the sector, while funding and institutional support are also growing.
Sitharaman said the development of AI requires more than software. Computing hardware, specialised infrastructure, skilled professionals and institutions capable of continuously updating their knowledge will be essential as the technology develops.
Her comments come at a time when India is expanding its technology ambitions across several interconnected fields. AI requires advanced processors and large-scale computing infrastructure, while semiconductor manufacturing provides the hardware foundation needed for modern digital systems.
Quantum technology represents another emerging area, with applications being explored in computing, communications, sensing and cybersecurity. The combination of these technologies is increasingly being discussed as part of India’s long-term strategy for technological capacity.
The government’s focus on AI infrastructure is also being reflected in the expansion of computing facilities. India is targeting 100,000 public GPUs by December under its AI Mission, while a fellowship programme for 13,500 scholars is intended to strengthen the talent pipeline supporting AI research and development.
The push for greater computing access is significant because the cost of high-performance hardware can be a major barrier for smaller companies and research groups. Shared public infrastructure can provide access to computing resources without requiring every organisation to establish its own large-scale facilities.
Sitharaman also highlighted the potential role of AI in India’s manufacturing and MSME sectors. Smaller businesses across manufacturing and other industries could use AI tools to improve processes, analyse data and increase operational efficiency.
The expansion of AI adoption is creating demand for a wider range of technological capabilities. Data centres need processors, networking equipment, storage systems, electricity and cooling infrastructure. At the same time, organisations need professionals capable of developing, deploying and securing AI applications.
India’s growing data-centre ecosystem is already attracting investment from companies involved in power supply, equipment and digital infrastructure. A September 28 report noted that businesses supporting the country’s AI infrastructure expansion have been gaining attention as demand for computing capacity increases.
The development of domestic semiconductor capabilities is particularly important because advanced AI systems rely on specialised chips. India’s semiconductor programme has attracted investments from global and domestic companies, but the sector remains exposed to supply-chain, geopolitical and cybersecurity risks.
A recent analysis of India’s semiconductor expansion noted that the country’s growing role in chip manufacturing will require stronger protection against cyber threats and supply disruptions. It also highlighted the importance of developing domestic capabilities in areas including chip design, fabrication, electronic design automation tools and advanced packaging.
These challenges have made technological resilience an increasingly important part of India’s semiconductor strategy. Dependence on a limited number of suppliers can expose manufacturing operations to disruptions, while cyberattacks could affect highly connected production facilities.
The country’s AI strategy also has an international dimension. External Affairs Minister S Jaishankar said at the United Nations General Assembly that countries should have the ability to shape their own AI ecosystems according to their national priorities. He also stressed the importance of technology access and the interests of developing countries.
The discussion reflects the growing importance of AI beyond consumer applications. Governments are increasingly examining how access to computing, data and advanced technology could affect economic development, public services and national technological capabilities.
At the same time, the rapid expansion of AI is raising questions about employment and productivity. The World Economic Forum’s September outlook said AI adoption is expected to increase over the next 12 months, with economists anticipating productivity gains. It also noted uncertainty about whether investment in data-centre infrastructure would produce comparable employment growth.
For India, the challenge is to ensure that technology investment translates into wider economic capabilities. That means building skills alongside infrastructure and creating stronger links between universities, research institutions, startups and industry.
Sitharaman’s emphasis on teachers and training institutions underlines the importance of human capital in this process. AI and other advanced technologies are evolving rapidly, requiring educational institutions to regularly update curricula and provide students with practical exposure to new tools.
The semiconductor sector similarly requires specialised expertise in areas such as chip architecture, manufacturing processes, packaging and testing. Quantum technology demands another set of advanced scientific and engineering skills.
The development of these capabilities is likely to require sustained cooperation between government, academia and industry. Public investment can support infrastructure and research, while private companies can bring commercial applications, manufacturing experience and market access.
India’s technology expansion is therefore moving toward a broader model that combines AI computing, semiconductor hardware, quantum research and skilled manpower. The immediate focus is on building capacity, but the longer-term objective is to create an ecosystem capable of developing and deploying advanced technologies within the country.
As investment in these sectors grows, infrastructure will remain a central requirement. The availability of computing power, reliable digital networks, advanced chips and trained professionals will influence how quickly Indian organisations can move from experimenting with emerging technologies to using them at scale.