Bengaluru: Union Finance Minister Nirmala Sitharaman said India’s next major phase of infrastructure investment should focus heavily on artificial intelligence (AI), semiconductor chips and quantum computing.
Speaking at the 7th edition of the IIT Madras Alumni Association’s Sangam 2026 in Bengaluru, Sitharaman said India needs to strengthen its existing digital infrastructure and build greater capacity to support the growing adoption of AI across sectors.
She stressed the need for increased investment in AI hardware, training and skills. She also urged micro, small and medium enterprises (MSMEs) to adopt AI-based solutions to improve productivity and strengthen their ability to compete globally.
According to Sitharaman, technology and innovation should reach a wider range of sectors, including agriculture, renewable energy and advanced manufacturing. She highlighted applications such as drones, precision mapping and technology-enabled improvements in agricultural markets and productivity.
The Finance Minister also discussed the funding challenges faced by deep-tech startups, particularly hardware companies that may take several years to generate revenue. She invited suggestions on how early-stage and patient capital could be structured to support such businesses.
India is already expanding its capabilities in emerging technologies through initiatives including the IndiaAI Mission, semiconductor programmes and the National Quantum Mission. These programmes focus on strengthening domestic computing, chip manufacturing and design, research, skills and innovation.
The government has also approved Semicon 2.0 with an outlay of ₹1,27,500 crore. The programme covers areas including semiconductor research and development, chip design, equipment and materials, new fabrication facilities, talent development and the ATMP/OSAT ecosystem.
