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Artificial intelligence in India

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Through Artificial intelligence, Compound annual growth rate and Reinforcement learning

India's transformation to AI is primarily being driven by startups and government initiatives & policies like Digital India. By fostering technological trust through digital public infrastructure, India is tackling socioeconomic issues by taking a bottom-up approach to AI. NASSCOM and Boston Consulting Group estimate that by 2027, India's AI services might be valued at $17 billion. According to 2025 Technology and Innovation Report, by UN Trade and Development, India ranks 10th globally for private sector investments in AI. According to Mary Meeker, India has emerged as a key market for AI platforms, accounting for the largest share of ChatGPT's mobile app users and having the third-largest user base for DeepSeek in 2025.

While AI presents significant opportunities for economic growth and social development in India, challenges such as data privacy concerns, skill shortages, and ethical considerations need to be addressed for responsible AI deployment. The growth of AI in India has also led to an increase in the number of cyberattacks that use AI to target organizations.

History

Early days (1960s-1980s)

The TIFRAC (Tata Institute of Fundamental Research Automatic Calculator) was designed and developed by a team led by Rangaswamy Narasimhan between 1954 and 1960. He worked on pattern recognition from 1961 to 1964 at the University of Illinois Urbana-Champaign's Digital Computer Laboratory. In order to conduct research on database technology, computer networking, computer graphics, and systems software, he and M. G. K. Menon founded the National Centre for Software Development and Computing Techniques. In 1965, he established the Computer Society of India and supervised the initial research work on AI at Tata Institute of Fundamental Research. Jagdish Lal launched the first computer science program in 1976 at Motilal Nehru Regional Engineering College. H. K. Kesavan from the University of Waterloo and Vaidyeswaran Rajaraman from the University of Wisconsin–Madison joined the IIT Kanpur Electrical Engineering Department in 1963–1964 as Assistant Professor and Head of Department, respectively. H.N. Mahabala, who was employed at Bendix Corporation's Computer Division, joined the department in 1965. He previously worked with Marvin Minsky. The IIT Kanpur Computer Center was led by H. K. Kesavan, with Vaidyeswaran Rajaraman serving as his deputy. Kesavan informally permitted Rajaraman and Mahabala to introduce artificial intelligence into computer science classes. The computer science program was approved by IIT Kanpur in 1971 and split out from the electrical engineering department. In 1973, an IBM System/370 Model 155 was installed at IIT Madras. John McCarthy, head of the Artificial Intelligence Laboratory at Stanford University visited IIT Kanpur in 1971. He donated PDP-1 with a time-sharing operating system. During the 1970s, the balance of payments deficit in India restricted import of computers. The Department of Computer Science and Automation at the Indian Institute of Science established in 1969, played an important role in nurturing the development of data science and artificial intelligence in India. First course on AI was introduced in the 1970s by G. Krishna. B. L. Deekshatulu introduced the first course on pattern recognition in the early 1970s.

Foundation phase

1980s

In the 1980s, the Indian Statistical Institute's Optical Character Recognition Project was one of the country's first attempts at studying artificial intelligence and machine learning. OCR technology has benefited greatly from the work of ISI's Computer Vision and Pattern Recognition Unit, which is headed by Bidyut Baran Chaudhuri. He also contributed in the development of computer vision and digital image processing. As part of the Indian Fifth Generation Computer Systems Research Programme, the Department of Electronics, with support from the United Nations Development Programme, initiated the Knowledge Based Computer Systems Project in 1986, marking the beginning of India's first major AI research program. Prime Minister Rajiv Gandhi requested that the Department of Electronics and IISc to initiate the Parallel Processing Project in 1986–1987. The Center for Development of Advanced Computing eventually joined those efforts. IIT Madras was selected to develop system diagnosis, ISI for image processing, National Centre for Software Technology for natural language processing and TIFR for speech processing.

In 1987, the proposal of N. Seshagiri, Director General of the National Informatics Centre for the prototype development of supercomputer was cleared. Negotiations for a Cray supercomputer were underway between the Reagan administration and the Rajiv Gandhi government. US Defense Secretaries Frank Carlucci and Caspar Weinberger visited New Delhi after the US approved the transfer in 1988. The sale of a lower-end XMP-14 supercomputer was permitted in lieu of the Cray XMP-24 supercomputer due to security concerns. The Center for Development of Advanced Computing was formally established in March 1988 by the Ministry of Communications and Information Technology (previously the Ministry of IT) within the Department of Information Technology (formerly the Department of Electronics) in response to a recommendation made to the Prime Minister by the Scientific Advisory Council. The National Initiative in Supercomputing, which produced the PARAM series, was led by Vijay P. Bhatkar. For the first ten years, supercomputing and Indian language computing were the two main focus areas. C-DAC has expanded its operations in order to meet the needs in a number of domains, including network and internet software, real-time systems, artificial intelligence, and NLP.

Under the direction of Professor KV Ramakrishnamacharyulu from National Sanskrit University and Professor Rajeev Sangal from the International Institute of Information Technology, Hyderabad, the Akshar Bharati Research Group was established in 1984 with support from IIT Kanpur and the University of Hyderabad for computational processing of Indian languages. They focused on computational linguistics, NLP with ontological database systems, and Indian language/translation theories with linguistic tradition.

1990s

From IIT Kanpur, Mohan Tambe joined C-DAC in the 1990s to work on Graphics and Intelligence based Script Technology (GIST), which addressed the challenge of adapting personal computer software based on Latin script to Devanagiri and a number of other Indian language scripts. He was previously working on the Machine Translation for Indian languages Project. Within C-DAC, he established the GIST group. The technology was expanded to encompass NLP, artificial intelligence-based machine-aided language learning and translation, multimedia and multilingual computing solutions, and more. GIST resulted in the creation of G-CLASS (GIST cross language search plug-ins suite), a cross-language search engine. The Applied Artificial Intelligence Group at C-DAC has developed some basic and novel applications in the field of NLP, including machine translation, information extraction/retrieval, automatic summarization, speech recognition, text-to-speech synthesis, intelligent language teaching, and natural language-based document management with Decision Support Systems. These applications are the result of the foundation laid by previous language technology activities. Software firms in the Indian private sector began looking into AI applications, mostly in the area of business process automation.

In order to allow machines to read, comprehend, and interpret human languages, the Language Technologies Research Center was founded in October 1999 at the International Institute of Information Technology, Hyderabad. It focused on the advancements in semantic parsing, information extraction, natural language generation, sentiment analysis, and dialogue systems.

Some of the early AI research in India was driven by societal needs. For example;

  • Eklavya, a knowledge-based program created by IIT Madas, helped community health workers deal with toddler illness symptoms by generating systematic case histories, offering basic treatment advice, or indicating when a referral was necessary.
  • The National Centre for Software Technology (NCST) created the Vidya language teaching system, which enhances educational quality through the use of speech-vision processing, ML, and NLP.
  • C-DAC created the Sarani flight-scheduling expert system.
  • TIFR and the Central Electronics Engineering Research Institute created a formant-based speech synthesis system for the Indian Railways.
  • IISc and ISRO built an image processing facility that uses AI and computer vision.

Growth phase

Around 2003, language technology, computer vision, and data science research groups were established at the International Institute of Information Technology, Hyderabad. With an emphasis on applied and translational research, the institute has the largest group of AI and machine learning researchers in India as of 2023. They also work on blockchain and quantum computing. In partnership with Intel, they created the Indian Driving Dataset, which contains the largest amount of road data for unstructured driving situations worldwide.

The Government of Karnataka established the Machine Intelligence & Robotics CoE (MINRO) at the International Institute of Information Technology, Bengaluru in 2018 with the goal of creating frameworks and regulations for ethical and responsible AI technologies. It researches on human-machine interface, industrial robotics and automation, data science and analysis, pattern recognition, machine intelligence, and AI systems.

On 7 September 2018, NITI Aayog, Intel, and TIFR announced their intention to establish International Center for Transformative Artificial Intelligence (ICTAI) in Bengaluru to support applied research. Under the National Strategy for Artificial Intelligence, it will create and implement AI-led application-based research projects on AI foundational frameworks, tools, and assets, such as curated datasets and distinctive AI algorithms in smart mobility, healthcare, and agriculture. On 16 November 2018, the Government of Maharastra signed MoU with the NITI Aayog and Wadhwani Institute for Artificial Intelligence to launch ICTAI for rural healthcare in collaboration with PATH, Lords Education and Health Society, Wadhwani Initiative for Sustainable Healthcare, IIT Madras, Sir Ratan Tata Trust, and Stanford Center for Population Health Sciences. It will prioritize study, diagnosis, and treatment of illnesses such as tuberculosis and cancer.

NITI Aayog signed partnership agreement with Microsoft in 2018 to help expedite the use of AI for the development and adoption of local language computing, and to create farm advice services. Microsoft-NITI Aayog Problem to Solution Incubation Test Bed will be established. Microsoft will also help develop AI-assisted models for diabetic retinopathy screening.

NITI Aayog drafted a proposal in 2019 to establish an institutional framework for AI. A cabinet note has been issued proposing to allocate ₹7,500 crore initially over three years for the establishment of 20 AI adaption centers, five core research institutes, and a cloud computing platform named AIRAWAT.

Acceleration phase

INDIAai, a collaborative initiative of the National E-Government Division and NASSCOM for AI-related advancements, was introduced by Ravi Shankar Prasad on 30 May 2020. In partnership with Intel and the Ministry of Education, the Responsible AI for Youth Program was also introduced to foster the development of AI-related skills. The Yardi School of Artificial Intelligence was founded in September 2020 by IIT Delhi to advance research in AI, ML, and data science in the fields of healthcare, materials science, robotics, industry 4.0, weather prediction, and transportation. $10 million was contributed by Yardi Systems' Anant Yardi in 2021 for education, infrastructure and research related activities. Sharad Kumar Saraf and Sudarshan Kumar Saraf, the founders of Technocraft Industries, donated ₹15 crore to establish the Technocraft Centre for Applied Artificial Intelligence at IIT Bombay in March 2021. In 2021, the Mehta Family Foundation and IIT Guwahati signed an MoU to establish the Mehta Family School of Data Science and Artificial Intelligence.

According to Stanford University's annual AI Index report, India ranked fifth globally in 2022 in terms of investments received by businesses offering AI products and services. In 2022, Indian software professionals made the most global contribution to nearly 24% of GitHub projects pertaining to AI.

The Centre for Machine Intelligence and Data Science was officially opened by IIT Bombay on 28 April 2023. The National Research Foundation was created to advance research in a variety of fields, including AI with a budget of ₹50,000 crore for five years.

The Union Cabinet approved an extension of the Digital India program in 2023, allocating ₹14,903 crore starting FY2021-22 to FY2025-26 for the addition of nine new supercomputers under the National Super Computer Mission. All 22 of the Schedule 8 languages will be available for Bhashini. There will be the establishment of three AI Centers of Excellence focused on sustainable cities, agriculture, and health. Prime Minister Narendra Modi addressed international concerns about the negative use of artificial intelligence during a virtual G20 conference hosted by India in November 2023.

To assist the Indian government and policymakers on data science and AI-related policy issues, Sunil Wadhwani gave ₹110 crore to IIT Madras in 2024 for Wadhwani School of Data Science and AI. The institute will combine fundamental and applied research in systems biology, manufacturing, energy and the environment, healthcare, agriculture, smart cities and transportation, financial analytics, and defense.

India invested ₹10,371.92 crore (US$1.1 billion) on IndiaAI Mission. With a budget of ₹990 crore, Minister for Education Dharmendra Pradhan announced on 15 October 2024, the creation of three AI Centers of Excellence in New Delhi: one for agricultural (under IIT Ropar), one for sustainable cities (under IIT Kanpur), and one for healthcare (under AIIMS and IIT Delhi). The Center for Generative AI, Shrijan at IIT Jodhpur was established on 25 October 2024 by Meta Platforms and IndiaAI to support long-term sustainability of Foundation Models and GenAI research in healthcare, education, agriculture, smart cities, smart mobility, sustainability, financial inclusion, and social inclusion. Additionally, the YuvAI initiative for Skilling and Capacity Building was launched in collaboration with the All India Council for Technical Education to advance open-source AI. Meta has pledged to donate up to ₹750 lakhs over a three-year period. Gati Shakti Vishwavidyalaya, the Institute of Human Behavior and Allied Sciences, the Postgraduate Institute of Medical Education and Research, and the All India Institute of Medical Sciences, Jodhpur, will work together with Shrijan. In November 2024, the Karnataka government approved a ₹28 crore investment to construct a Center of Excellence in Artificial Intelligence in Bengaluru.

From 2025 to 2027, Microsoft to invest ₹25,000 crore (US$2.6 billion) on cloud and AI infrastructure. The construction of a 3 GW data center for AI services in Jamnagar was announced by Reliance Industries in 2025. On 12 June 2025, India's first locally developed, multilingual agentic AI, Kruti, was introduced by Ola Krutrim.

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