Union Minister Ashwini Vaishnaw says India’s IT sector is shifting to an AI-led services model, backed by data centres, global capability centres and updated curricula, as government, industry and academia work together to position the country as a global hub for AI solutions.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw has said India’s IT industry is transitioning from a traditional services model to an artificial intelligence-driven approach, describing the shift as a major opportunity to position the country as a global hub for next-generation digital services.
Speaking in Bengaluru on Saturday, Vaishnaw said the transformation is being guided by close coordination between the government, industry and academia to ensure India can capitalise on what he called a new industrial revolution powered by AI.
He noted that discussions with technology companies over the past 18 months have focused on adapting to rapid global changes and preparing the workforce and infrastructure for AI-led services.
These centres, he added, are creating high-value opportunities for Indian engineers and technology professionals.
“Indian IT is moving from the old model to a new AI-based services model,” he said, adding that the sector is increasingly focused on providing advanced AI solutions to the world rather than conventional outsourcing services.
According to him, this number surpasses the scale seen in traditional IT services and reflects rising global confidence in India’s capabilities.
He attributed the growth to supportive government policies and a strong ecosystem that combines skilled talent with expanding infrastructure.
Referring to announcements in the Union Budget, he said reforms aimed at boosting the data centre sector would help support the rapid evolution of artificial intelligence.
“In the five-layer architecture of AI, data centres provide the core infrastructure. With sufficient data centres, we can deliver AI services globally,” he said.
Vaishnaw also clarified that both domestic and foreign investors would receive equal treatment in terms of tax benefits related to data centre investments.
He revealed that more than 200 colleges have already revised their BTech and MTech programmes to align with AI-focused skills. The industry is also working towards a common curriculum framework, similar to initiatives previously seen in the telecom and semiconductor sectors.
He described the effort as a “trifecta” involving academia, industry and government working in synchronisation.
He pointed to a large electronics manufacturing facility near Bengaluru that is expected to employ around 40,000 people at a single site.
The minister added that Bengaluru is also playing an important role in the semiconductor ecosystem, with two companies having expressed interest in setting up AI server manufacturing in India. Details will be announced once plans are finalised, he said.
