Vaishnaw: 30% of Indian startups now AI-led as government ramps up national compute infrastructure

Union Minister for Electronics & IT, Railways and I&B Ashwini Vaishnaw told the Rajya Sabha on December 5 that artificial intelligence has become a defining driver of India’s startup growth, with almost 30% of all startups in the country now working in AI-based areas.

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Speaking during Question Hour, the minister said the government’s India AI Mission is actively expanding access to high-end compute power and infrastructure that is helping young companies reduce development costs and scale faster.

“Startup financing is a major part of the India mission. We are working with venture capital, with incubators, with universities to make sure that these startups get the support they need,” he said, adding that the Common Compute Facility provisioned under the India AI initiative is directly benefiting early-stage innovators struggling with high compute expenses.

Highlighting India’s startup acceleration, Vaishnaw noted that the country has grown from about 400 startups 11 years ago to more than 1.7 lakh today, with over 100 unicorns, making India the world’s third-largest startup ecosystem. He credited the success to Prime Minister Narendra Modi’s focus on innovation and the Startup India programme.

Call for AI awareness beyond the tech sector

During the discussion, Rajya Sabha MP Sudha Modi urged the government to ensure broader AI literacy, including training for senior lawmakers and application-level understanding across sectors like agriculture, healthcare, culture and education. She stressed that AI “is not something meant only for youngsters in engineering colleges” and pushed for structured awareness sessions for members of the Upper House.

Concerns on regional AI infrastructure

Responding to questions about regional imbalance in compute access, highlighted by the AI Adoption Index 2023, and queries over the site selection for new AI hubs, Vaishnaw said data centre and infrastructure location decisions are driven by industry, and the government’s approach follows “cooperative federalism”, supporting whichever state or company takes initiative.

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“The India AI Mission is covering the entire country in a regionally balanced way,” he assured members, adding that multiple AI hubs and data labs are being commissioned across states and Union Territories.

Parliament adjourns amid airline chaos

In a lighter moment that underscored the day’s broader disruptions, a member pointed out that IndiGo flight cancellations from Delhi had left several MPs stranded, requesting the session continue longer. The House was subsequently adjourned till 2 p.m.

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