India’s expanding AI ecosystem is projected to nearly triple its Graphics Processing Unit (GPU) demand to over 100,000 units in the coming years, fueled by growing adoption in manufacturing, healthcare, agriculture, and ESG compliance. Public and private investments aim to build domestic capacity and reduce foreign reliance.
India’s rapid adoption of artificial intelligence technologies is driving a surge in demand for high-performance GPUs—critical hardware for AI computations. Currently, the country has around 38,000 GPUs deployed across research institutes, startups, and enterprises, with an average cost of just Rs 65 per GPU per hour, significantly lower than global rates. According to Abhishek Singh, CEO of IndiaAI Mission and additional secretary at MeitY, this demand is expected to exceed 100,000 GPUs as AI scales across key sectors.
To reach this scale, significant investments are planned in building GPU data centers and infrastructure, costing Rs 500 to 800 crore per 1,000-GPU block. Both government initiatives and private players are actively working to expand the AI compute ecosystem. The government’s IndiaAI Mission, with a budget exceeding Rs 10,000 crore, is at the forefront, setting up distributed AI compute networks accessible to startups, academia, and public agencies.
Looking ahead, India envisions emerging as a voice-enabled digital economy, improving productivity and inclusivity by enabling AI adoption among the 500 million people currently outside the digital ecosystem through localized, voice-based tools.
Key Highlights:
India’s GPU demand projected to nearly triple to 100,000 units.
Current GPU availability at 38,000, with low-cost compute access (~Rs 65/hour).
Major sectors fueling demand: manufacturing, healthcare, agriculture, ESG compliance.
IndiaAI Mission budget over Rs 10,000 crore to expand AI infrastructure.
Large-scale GPU data centers require Rs 500-800 crore investment per 1,000 GPUs.
Goal to create an inclusive, voice-enabled digital economy for 1.4 billion citizens.
Strategic push to build domestic capacity and reduce reliance on foreign hardware.
Source: Financial Express, IndiaAI, Ministry of Electronics & IT, Economic Times, PIB