Amitabh Kant: India’s Future Growth Will Be Shaped by AI, Data Centers, and Semiconductors.

Amitabh Kant: India's Future Growth Will Be Shaped by AI, Data Centers, and Semiconductors.
Amitabh Kant, former G20 Sherpa and ex-CEO of NITI Aayog, asserts that artificial intelligence, data centres, and semiconductor manufacturing will be pivotal for India’s economic evolution as the nation gears up for a significant technological shift in the next decade.

In an interview with CNBC-TV18, Kant emphasized that India should proactively develop the necessary infrastructure to facilitate the AI revolution, particularly focusing on clean energy systems, semiconductor capabilities, and digital infrastructure.

“Secondly, we are entering the era of AI and data centres. A significant transformation is underway. Globally, nearly $3 trillion is being invested in AI,” Kant remarked.
He noted that India is already seeing considerable investment in digital infrastructure. “In India alone, around $160 billion has been earmarked for data centre investments,” he explained.

Kant stated that India possesses a unique advantage due to the large volume of data generated within its borders, but it now requires infrastructure to turn that advantage into economic progress.

“India generates 20% of the world’s data, but we must ensure the availability of clean and renewable energy to support that infrastructure,” he remarked.

Kant indicated that the expansion of renewable energy, battery storage, and enhanced power transmission systems will be essential to support India’s AI aspirations, especially since data centres need reliable and energy-intensive operations.

“If we can supply clean energy and efficiently manage power distribution, we will be able to significantly advance AI, renewable energy, and data centres,” he stated.

He also highlighted the need for success in the semiconductor initiatives already announced under the government’s semiconductor program.

“Simultaneously, we must ensure that the 12 semiconductor investments in the country are fully realized,” Kant remarked.

India’s semiconductor initiative has turned into one of the leading industrial policies in recent times, with approved investments totaling ₹1.64 lakh crore across various projects aimed at enhancing domestic chip manufacturing and electronics production.

Kant noted that the future growth of India will hinge on integrating advanced manufacturing with innovation-driven sectors like AI, semiconductors, and clean energy technologies.

These statements come as the Narendra Modi administration approaches 12 years in power, a time characterized by significant reforms, extensive infrastructure investment, and rapid economic digitalization.

Also Read | Amitabh Kant pushes EV-only future, says India should stop registering fossil-fuel 2-wheelers after 2027

Kant stressed that India has a chance to establish itself as a global technology and manufacturing center but cautioned that effective execution and speed will be vital in the forthcoming years as nations compete fiercely in AI and semiconductor development.

He further underscored the necessity of building a robust manufacturing ecosystem focused on electronics and advanced technologies, indicating that India must progress beyond assembly to deeper component and machine manufacturing to stay competitive on a global scale.

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