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IndiaAI Mission • GPU Procurement • AI Infrastructure • Innovation • Digital Transformation

Powering the Future: India Begins GPU Procurement Under the IndiaAI Mission

In a bold stride toward technological self-reliance, the Government of India has launched the bidding process to procure 10,000 Graphics Processing Units (GPUs) as part of the ambitious IndiaAI Mission. Approved in March 2024, the ₹10,372 crore mission spans five years and is designed to accelerate artificial intelligence (AI) development across key sectors of the Indian economy.

🚀 GPU Procurement – A Foundational Move

The procurement, which began on January 22, 2025, involves ten leading tech companies, including Jio Platforms and Tata Communications. This strategic step will absorb ₹4,563.36 crore, accounting for 44% of the mission’s budget. The selected firms will supply high-end GPUs essential for AI computing capabilities in India.

⚙️ Why GPUs Matter for AI

Unlike traditional CPUs, GPUs process massive datasets simultaneously, making them ideal for training complex AI models. Their efficiency powers AI-driven applications in healthcare, agriculture, governance, and education, forming the hardware backbone of a truly intelligent digital economy.

⚠️ Procurement Hurdles

Several challenges shadow the mission’s early phase:

• Global GPU shortages and high costs
• India’s limited GPU infrastructure (less than 2% of global capacity)
• Skilled workforce gap in AI and data science
• Geopolitical dependencies in chip supply chains

To counter some of these concerns, the government has made bidding requirements more inclusive:

• Primary bidder turnover threshold lowered from ₹100 crore to ₹50 crore
• Non-primary bidder threshold dropped to ₹25 crore

This move opens the door for startups and MSMEs to participate in India’s AI growth.

🧠 What is the IndiaAI Mission?

The IndiaAI Mission aims to establish a robust AI ecosystem by:

• Building high-end AI computing infrastructure
• Promoting AI research, design, and innovation
• Supporting foundational AI models
• Enhancing data governance and quality
• Encouraging industry-academia collaboration
• Launching an IndiaAI Innovation Centre
• Funding AI startups and incubators
• Promoting responsible and ethical AI use

📍 Current Status of AI in India

India’s AI footprint is expanding, with major cities like Bengaluru, Hyderabad, and Pune emerging as AI and tech hubs. The Digital India push, National AI Strategy, and rising startup activity are helping to integrate AI into public services, agriculture, education, and fintech.

🔮 What Lies Ahead?

The IndiaAI Mission is expected to:

• Create new AI employment and research opportunities
• Increase India’s stake in global AI innovation
• Make foundational contributions in multilingual AI, language processing, and rural tech solutions

However, the road ahead includes critical concerns around:

• AI ethics, fairness, and bias
• Environmental sustainability of data centres
• Access to cutting-edge chip technology amid global geopolitical shifts

As India embarks on this transformative journey, GPU procurement is just the beginning. A strong computing backbone will unlock the next generation of AI innovation, propelling India toward becoming a global leader in responsible and inclusive AI development.