India is entering a new phase of the Digital India program, prioritizing AI and semiconductor manufacturing, with 12 semiconductor projects approved totaling about Rs 1.64 lakh crore and the deployment of over 45,000 GPUs for AI research.

The semiconductor push includes one fabrication unit, two compound semiconductor fabrication units, and nine packaging units, while India Semiconductor Mission 2.0 will strengthen domestic capabilities in equipment, materials, and indigenous IP.

Alongside the hardware push, the incubator of the ecosystem expands with a design incentives program supporting 24 projects and 23 tapeouts, reinforcing India’s position as a growing electronics manufacturer with AI-ready infrastructure.

AI governance guidelines released in November 2025 emphasize building AI that is safe, inclusive, and trustworthy.

Policy progress includes ongoing AI governance developments, data protection rules, and new regulatory steps like the Promotion and Regulation of Online Gaming Act, reflecting a maturing digital policy landscape.

UPI continues to lead real-time payments, with 24,162 crore transactions in the last fiscal year and accounting for about half of all global real-time digital transactions, while driving 81% of India’s digital payments.

India’s startup ecosystem posted its strongest year in FY26, with over 55,200 DPIIT-recognized startups and 23.36 lakh direct jobs; nearly half of recognized startups have at least one woman director or partner.

Key outcomes include 23.36 lakh direct startup jobs (a 36.1% year-on-year rise), high gender diversity in startups, and a rising Global Innovation Index ranking from 81 in 2015 to 38 in 2025.

Digital infrastructure progress includes 106.58 crore broadband subscribers, BharatNet extending high-speed connections to 2.18 lakh gram panchayats, and 5G coverage reaching 99.9% of districts.

A National Data Centre for the North East was launched in Guwahati as part of broader Digital India milestones alongside widespread broadband, BharatNet, and 5G expansion.

The IndiaAI Mission has built a shared compute facility with more than 45,000 GPUs to support 15 large and small language models, plus an extensive AI data and model ecosystem via the AI Kosh platform and multiple Centers of Excellence.

With an outlay exceeding Rs 10,372 crore, IndiaAI also hosts the AI Foundation Model pillar featuring over 12,500 datasets, 307 AI models, and 20 toolkits, underscoring national-scale AI research and deployment.