New Delhi: Nvidia, the world’s most valuable AI chipmaker, has advised that India must significantly increase its investment in AI and leverage it to make operations smarter if it wants to compete globally.
Current AI Investment in India Insufficient
Currently, India invests around $1.2 billion in AI infrastructure—a figure Nvidia considers far below what is required. Speaking at the AI India Impact Summit, Nvidia’s Senior Vice President of Business, Shankar Trivedi, said that out of nearly 2,000 large multinational companies in India, about 1,800 have Global Capability Centers (GCCs) employing over 2 million people, which could rise to 3 million soon.
Trivedi emphasized that each center should develop its own local AI “factory”, using AI to make data handling and operations more efficient. He also highlighted the 20-year tax holiday announced in Budget 2026-27 as a major opportunity. The government has stated that foreign companies establishing data centers in India or purchasing local data center services will receive tax relief until 2047.
AI Investment vs National Infrastructure Spending
Trivedi noted that India spends nearly $150 billion annually on roads, railways, airports, and electricity. In comparison, $1.2 billion for AI is insufficient. He stressed that to build a strong global presence in AI, whether in manufacturing or services, investment must be substantially increased.
NPCI Partners with Nvidia
In a related development, the National Payments Corporation of India (NPCI) signed an agreement with Nvidia to enhance the autonomous AI capabilities of India’s payment systems. NPCI stated that this initiative aims to handle large-scale, real-time payment requirements efficiently, with its CTO emphasizing the goal of advancing AI capabilities across the ecosystem.
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