India aims to attract over $200 billion in AI investments by 2028

India is targeting more than $200 billion in artificial intelligence‑related investments over the next two years, focusing on infrastructure, high‑performance computing, AI models and application layers, Union IT Minister Ashwini Vaishnaw said at the India AI Impact Summit 2026.

The push spans all five layers of the AI stack — from compute and data centres to software and end‑user applications — as global firms show strong interest in backing India’s rapidly growing AI ecosystem. Much of the capital is expected to flow into AI infrastructure, including data centres and GPUs, supported by policy incentives like extended tax benefits for cloud and AI companies.

The government also plans to expand computing capacity and deepen industry‑academia collaboration to build talent for AI development. These investments are part of India’s broader strategy to position itself as a major global AI hub, leveraging its large talent pool, digital adoption and policy support.