Digital India at 11: AI, chips and affordable internet power next growth phase

NEW DELHI: As Digital India approaches its 11th anniversary on 1 July, the government’s flagship digital transformation programme is entering a new phase focused on artificial intelligence (AI), semiconductor manufacturing, digital public infrastructure and affordable connectivity.

Launched in 2015 to build a digitally empowered society and knowledge economy, the initiative has significantly expanded internet access, reduced mobile data costs and accelerated digital service delivery across the country. Internet connections have grown nearly fourfold over the past decade, while the cost of mobile data has fallen from Rs 269 per GB to around Rs 8-10 per GB, making India one of the world’s most affordable digital markets.

The government said the programme is now concentrating on frontier technologies that are expected to shape India’s long-term technological ambitions under the Viksit Bharat 2047 vision.

A key pillar of this next phase is the IndiaAI Mission, approved with an outlay of more than Rs 10,372 crore. The mission has established a shared compute facility with over 45,000 GPUs to support AI research and deployment. It is also backing 15 large and small language models, while the AI Kosh platform now hosts more than 12,500 datasets, over 300 AI models and 20 toolkits for researchers, startups and institutions.

To widen AI adoption beyond major cities, 27 Data and AI Labs have been established across Tier II and Tier III cities, while more than 8.4 million learners have completed the YUVA AI course. The government also released AI Governance Guidelines in November 2025 to promote safe, inclusive and trustworthy AI development.

India’s semiconductor ambitions have also gathered pace. Under the India Semiconductor Mission, 12 manufacturing projects worth approximately Rs 1.64 lakh crore have been approved, including one semiconductor fabrication unit, two compound semiconductor fabrication facilities and nine packaging plants. The recently announced India Semiconductor Mission 2.0 aims to deepen domestic capabilities in chip equipment, materials, intellectual property and resilient supply chains.

Electronics manufacturing has emerged as another bright spot, with the sector now valued at Rs 13 lakh crore. Electronics has become India’s third-largest export category, while the country has established itself as the world’s second-largest mobile phone manufacturer.

Digital payments continue to be one of India’s strongest success stories. In April 2026, UPI completed ten years of operations, processing over 24,162 crore transactions during FY26. The platform now accounts for 81 per cent of India’s digital payments and nearly 49 per cent of global real-time digital transactions, while India’s Digital Public Infrastructure has established cooperation agreements with 23 countries.

The government’s digital infrastructure has continued to expand through BharatNet, which has connected 2.18 lakh gram panchayats with high-speed broadband. Broadband subscribers have reached 106.58 crore, while India’s 5G network now covers 99.9 per cent of districts through 4.74 lakh towers. A new National Data Centre for the North East Region was also inaugurated in Guwahati earlier this year.

The government also highlighted progress in digital governance, including the rollout of draft Digital Personal Data Protection Rules and implementation of the Promotion and Regulation of Online Gaming Act, which came into force in May 2026 alongside the establishment of the Online Gaming Authority of India.

India’s startup ecosystem also recorded its strongest year to date. More than 55,200 entities received DPIIT recognition during FY26, taking direct employment generated by recognised startups to 23.36 lakh. Nearly 48 per cent of recognised startups now have at least one woman director or partner.

With India’s Global Innovation Index ranking improving from 81st in 2015 to 38th in 2025, the government said Digital India has evolved from building foundational digital infrastructure to positioning the country as a global technology and innovation hub, driven by AI, semiconductor manufacturing and an expanding digital economy.