As India accelerates its push toward becoming a global leader in artificial intelligence, the second IndiaAI report is set to address critical challenges like AI-driven job displacement, workforce re-skilling, compute infrastructure, and AI geopolitics. The report is expected to be finalized before the upcoming AI Impact Summit in February 2026, which India will host in New Delhi.
Re-skilling India’s Tech Workforce to Meet AI Disruption
One of the key concerns shaping the report is the displacement of jobs due to AI automation, particularly in India’s vast IT sector. The government is working on a nationwide strategy for large-scale re-skilling of tech professionals, in collaboration with:
- Private sector companies
- Academia and research bodies
- State and central government agencies
This initiative is crucial to ensure that India’s tech talent remains competitive and future-ready, aligned with the goals of the Viksit Bharat 2047 vision.
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Boosting AI Compute Power: IndiaAI Compute Platform Expands
Compute capacity is another critical area of focus. While the government initially planned to build a national compute facility with 10,000 GPUs, India has already surpassed this target, with over 34,000 GPUs empaneled under the IndiaAI Compute platform.
Despite this progress, concerns remain about export controls on high-end AI hardware, particularly from the United States. Future recommendations may include:
- Incentives for domestic chip manufacturing
- Expanded public-private partnerships for HPC infrastructure
- Investments in sovereign compute capacity
This expansion in AI compute infrastructure is essential for training large-scale Indian AI models, especially those focused on multilingual and regional datasets.
Geopolitical Challenges: India Navigates Global AI Power Shifts
The report also highlights growing geopolitical challenges that impact India’s AI ambitions. Under the AI Diffusion Framework of the previous U.S. administration, India was placed in Tier-2—limiting its access to H100-equivalent GPUs.
The new US AI policy under Donald Trump proposes unrestricted export of AI tech to allied nations, but the definitions remain unclear. India must:
- Strategically align its AI policies with global developments
- Advocate for fair inclusion in AI alliances
- Strengthen diplomatic and tech partnerships
This geopolitical balancing act will be a key point of discussion at the AI Impact Summit 2026, building on the momentum of the 2025 Paris AI Action Summit, where India played a co-chairing role.
IndiaAI Report 2.0: Building on a Strong Foundation
The first IndiaAI report, released in October 2023, laid the foundation for India’s national AI strategy. Key recommendations included:
- Establishing 3 AI Centres of Excellence
- Developing Indian language-based multimodal AI foundation models
- Driving AI adoption in healthcare, agriculture, education, and governance
The second edition will build on this roadmap with refined targets, updated budgets, and more inclusive policy suggestions. With ₹10,300 crore already allocated for the IndiaAI Mission, officials suggest that further funding might be proposed in the upcoming report, considering the central role of AI in innovation and governance.
Collaboration Across Government & Industry
To shape the final recommendations, the Ministry of Electronics and Information Technology (MeitY) will soon seek feedback from:
- Central ministries
- Autonomous bodies
- State governments
Private sector executives and academic leaders will again participate in working groups to ensure a holistic approach to AI policy, infrastructure, and ethics.
Conclusion: India’s AI Future is Strategic, Inclusive, and Global
The second IndiaAI report is not just a policy document—it’s a strategic blueprint for India’s AI future. With a strong emphasis on re-skilling, compute infrastructure, and navigating geopolitical currents, India is preparing to lead from the front on the global AI stage.
As the AI Impact Summit 2026 approaches, India’s role as a global AI consensus-builder and innovation powerhouse is set to become even more significant.