Recent 12 SSB BENGALURU GD TOPIC
Why AI is not growing at higher scale in India ?
a) policy implementation challenges
b) lack of skilled workforce
c) semiconductor shortage
1. Policy Implementation Challenges 🗞️
• India has recognised AI as a strategic technology and launched the IndiaAI Mission in March 2024 with an outlay of ₹10,371.92 crore over five years. Its seven pillars cover computing capacity, foundation models, datasets, applications, future skills, startup financing and Safe & Trusted AI.
• The IndiaAI Mission aims to establish a public AI computing infrastructure of 10,000+ GPUs, develop indigenous foundation models and provide financing to AI startups.
• India has also identified AI use cases across government ministries and is establishing AI Centres of Excellence and Data & AI Labs to promote practical implementation.
• However, a major challenge is converting these national initiatives into large-scale implementation across states, government departments, MSMEs and public services.
• AI governance also requires clear mechanisms for data privacy, accountability, cybersecurity, transparency and responsible use of AI.
• The government has therefore introduced the Safe & Trusted AI pillar under IndiaAI Mission to address risks associated with AI and promote responsible deployment.
• The Digital India programme and IndiaAI Mission together provide the digital and AI policy framework, but implementation capacity and coordination between government, industry and academia remain important for scaling adoption.
2. Lack of Skilled Workforce👨🏼‍💻
• AI requires specialised skills in machine learning, deep learning, data science, statistics, mathematics, AI engineering and AI research.
• India’s large IT workforce provides a strong base, but traditional IT skills do not automatically translate into advanced AI capabilities.
• There is a continuing need for reskilling and upskilling as AI technologies evolve rapidly.
• The IndiaAI FutureSkills pillar specifically focuses on expanding AI education and capacity building.
• Under this initiative, the government has introduced YUVA AI for All, aimed at improving AI awareness and foundational literacy.
• IndiaAI Data and AI Labs are also being established through NIELIT centres, ITIs and polytechnics, particularly in Tier-2 and Tier-3 cities, to expand access to AI training.
• Skill India Digital Hub also provides AI and Generative AI courses; as of March 2026, more than 120 AI-related digital courses were available on the platform, including 11 specifically focused on Generative AI.
• India is also trying to strengthen advanced research and indigenous AI capability through the IndiaAI Mission’s Foundation Models pillar, including development of Indian foundation and large language models.
3. Semiconductor Shortage🍀
• AI development depends heavily on advanced semiconductors and high-performance computing chips, particularly GPUs required for training and running large AI models.
• India’s dependence on the global semiconductor supply chain can create cost and supply-chain vulnerabilities for AI development.
• Semiconductor manufacturing requires enormous capital, advanced technology, specialised equipment and highly skilled manpower.
• Recognising this, India launched the Semicon India Programme with an outlay of ₹76,000 crore to develop a domestic semiconductor and display manufacturing ecosystem.
• The programme provides fiscal support for semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors and semiconductor packaging.
• The Design Linked Incentive (DLI) Scheme supports domestic companies, startups and MSMEs involved in semiconductor design, with an outlay of ₹1,000 crore.
• India has also approved multiple semiconductor projects. As of February 2026, the government reported 10 approved semiconductor projects, involving around ₹1.6 lakh crore of envisaged investment, including two fabs and eight packaging units.
• The IndiaAI Mission is simultaneously addressing the computing side of the problem. By February 2026, more than 38,000 GPUs had been onboarded for a common AI compute facility accessible to Indian startups and academia at affordable rates.
