India Accelerates AI Infrastructure and Cyber Resilience with $250B Investment Momentum 

India reaffirms its leadership in building sovereign AI and cyber-resilient digital infrastructure through the IndiaAI Mission and strategic Union Budget 2026-27 incentives, attracting approximately $250 billion USD in global commitments for data centres and AI compute capacity. The government’s comprehensive policy framework positions the country as a global AI hub while prioritising security across critical sectors.
Launched in March 2024 with ₹10,371 crore allocation, IndiaAI Mission delivers compute infrastructure (38,000+ GPUs), AIKosh datasets platform, indigenous foundation models, and FutureSkills programs catalysing 243+ AI models across 20 sectors. Union Budget 2026-27 introduces a landmark 21-year tax holiday until 2047 for foreign cloud providers using India-based data centres, complemented by 15% safe harbour for domestic operators meeting the ₹2,000 crore threshold.
These investments respond to India’s exploding AI demand, projected 78GW compute requirement by 2030, while ensuring data sovereignty under DPDP Act compliance. MeitY coordinates with states to develop 2GW+ data centre capacity supporting hyperscale AI workloads, digital public infrastructure, and financial market resilience.
Simultaneously, cyber resilience gains priority following the BSE/ICCL incident learnings integrated into SEBI’s Cybersecurity Framework. Capital markets now mandate 6-hour cyber incident reporting, penetration testing, and real-time NSE-BSE data synchronisation, ensuring trading continuity. Future priorities span AI banking security, critical infrastructure protection (power/telecom), and strategic cybersecurity procurement.