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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.
AI services for global clients
Vaishnaw said AI could enable Indian firms to deliver specialised solutions to international clients, including global shipping lines and retail companies, through global capability centres (GCCs) based in India.
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.
Surge in global capability centres
Highlighting India’s growing appeal as a technology destination, Vaishnaw said more than 2,000 GCCs have already been established in the country.
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.
Data centres key to AI growth
The minister stressed that data centres form the backbone of AI deployment and will be critical to delivering services at scale.
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.
Education reforms for the AI era
Emphasising the need to prepare talent for the shift, Vaishnaw said academic institutions must update their curricula to match industry requirements.
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.
Karnataka emerges as manufacturing hub
Vaishnaw highlighted Karnataka’s growing role in electronics and semiconductor manufacturing, saying the state has benefited significantly from the government’s electronics component schemes.
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.
(With inputs from PTI)
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