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Former G20 Sherpa and ex-NITI Aayog CEO Amitabh Kant believes artificial intelligence, data centres and semiconductor manufacturing will shape India’s next phase of economic growth, as the country positions itself for a major technological transformation over the coming decade.
Speaking to CNBC-TV18, Kant said India must move aggressively to build the infrastructure needed to support the AI revolution, especially clean energy systems, semiconductor capacity and digital infrastructure.
“Secondly, we are entering the era of AI and data centres. There is a dramatic shift underway. Around $3 trillion is being spent worldwide on AI,” Kant said.
He added that India was already witnessing significant investment commitments in digital infrastructure. “In India itself, close to $160 billion has been announced in terms of data centre investments,” he said.
According to Kant, India holds a unique advantage because of the sheer scale of data generated within the country, but it now needs the infrastructure to convert that advantage into economic growth.
“India has 20% of the world’s data, but we must ensure we can provide clean and renewable energy to support that infrastructure,” he said.
Kant argued that renewable energy expansion, battery storage and stronger power transmission systems would become critical for sustaining India’s AI ambitions, especially as data centres require uninterrupted and energy-intensive operations.
“If we can provide clean energy and efficiently evacuate power, we will be able to drive AI, renewable energy and data centres in a major way,” he said.
He also stressed the importance of ensuring that India succeeds in the semiconductor projects already announced under the government’s semiconductor mission.
“At the same time, we must ensure that we succeed fully in the 12 semiconductor investments that have come into the country,” Kant said.
India’s semiconductor mission has emerged as one of the flagship industrial policies of recent years, with approved investments worth ₹1.64 lakh crore across multiple projects aimed at boosting domestic chip manufacturing and electronics production.
Kant said the next phase of India’s growth would depend on combining advanced manufacturing with innovation-led sectors such as AI, semiconductors and clean energy technologies.
The comments come as the Narendra Modi government nears completion of 12 years in office, a period marked by major reforms, large-scale infrastructure spending and rapid digitalisation of the economy.
Also Read | Amitabh Kant pushes EV-only future, says India should stop registering fossil-fuel 2-wheelers after 2027
Kant said India now has an opportunity to position itself as a global technology and manufacturing hub, but warned that execution and speed would be critical in the coming years as countries compete aggressively in AI and semiconductor development.
He also emphasised the importance of creating a strong manufacturing ecosystem around electronics and advanced technologies, saying India must move beyond assembly into deeper component and machine manufacturing to remain globally competitive.
Speaking to CNBC-TV18, Kant said India must move aggressively to build the infrastructure needed to support the AI revolution, especially clean energy systems, semiconductor capacity and digital infrastructure.
“Secondly, we are entering the era of AI and data centres. There is a dramatic shift underway. Around $3 trillion is being spent worldwide on AI,” Kant said.
He added that India was already witnessing significant investment commitments in digital infrastructure. “In India itself, close to $160 billion has been announced in terms of data centre investments,” he said.
According to Kant, India holds a unique advantage because of the sheer scale of data generated within the country, but it now needs the infrastructure to convert that advantage into economic growth.
“India has 20% of the world’s data, but we must ensure we can provide clean and renewable energy to support that infrastructure,” he said.
Kant argued that renewable energy expansion, battery storage and stronger power transmission systems would become critical for sustaining India’s AI ambitions, especially as data centres require uninterrupted and energy-intensive operations.
“If we can provide clean energy and efficiently evacuate power, we will be able to drive AI, renewable energy and data centres in a major way,” he said.
He also stressed the importance of ensuring that India succeeds in the semiconductor projects already announced under the government’s semiconductor mission.
“At the same time, we must ensure that we succeed fully in the 12 semiconductor investments that have come into the country,” Kant said.
India’s semiconductor mission has emerged as one of the flagship industrial policies of recent years, with approved investments worth ₹1.64 lakh crore across multiple projects aimed at boosting domestic chip manufacturing and electronics production.
Kant said the next phase of India’s growth would depend on combining advanced manufacturing with innovation-led sectors such as AI, semiconductors and clean energy technologies.
The comments come as the Narendra Modi government nears completion of 12 years in office, a period marked by major reforms, large-scale infrastructure spending and rapid digitalisation of the economy.
Also Read | Amitabh Kant pushes EV-only future, says India should stop registering fossil-fuel 2-wheelers after 2027
Kant said India now has an opportunity to position itself as a global technology and manufacturing hub, but warned that execution and speed would be critical in the coming years as countries compete aggressively in AI and semiconductor development.
He also emphasised the importance of creating a strong manufacturing ecosystem around electronics and advanced technologies, saying India must move beyond assembly into deeper component and machine manufacturing to remain globally competitive.
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