Over 2,000 GCCs set up as India's IT moves to AI services: Vaishnaw

Ashwini Vaishnaw said AI presents a major opportunity for India to develop a new model of services for the global market

Union Minister Ashwini Vaishnaw on Saturday said India's IT sector is moving to an AI-driven services model with coordinated efforts from industry, academia, and the government.

He said AI presents a major opportunity for India to develop a new model of services for the global market.

Citing examples, Vaishnaw noted that AI-based solutions could be offered to global shipping lines and retail companies through global capability centers (GCCs) in India, creating opportunities for Indian engineers.

The Union Minister for Electronics and IT added that, due to the government's focus on IT services, a large number of GCCs are being set up in India.

 

"At the last count, more than 2,000 GCCs have already come to India, which is far more than in traditional IT services," he said.

Vaishnaw highlighted that the Union Budget has announced major reforms for data centers to support the rapid evolution of artificial intelligence.

"Indian IT is moving from the old model to a new AI-based services model. Over the past one and a half years, we have had extensive discussions with the IT industry on the changes happening globally," he said during a press conference.

Calling AI a major industrial revolution, he said it will transform the entire software industry.

"AI is being called the fifth industrial revolution, and it is bringing significant changes to the software sector," Vaishnaw said.

He added that the IT, software, and technology industries are pivoting to a new role: providing AI-based services to the world.

"In the five-layer architecture of AI, data centers provide the core infrastructure. With sufficient data centers, we can deliver AI services globally," he said.

Vaishnaw clarified that domestic and foreign investors will be treated equally regarding tax benefits for data centers.

He stressed that the government has worked closely with the IT industry over the past one and a half years to leverage the AI revolution while protecting domestic players.

"The industry has worked meticulously with the government on this transition," he said.

"It is a coordinated effort-what some call the trifecta: academia, industry, and government-working together in synchronisation," he added.

The minister emphasised that academia must develop new courses relevant to the AI era, the industry must chart the correct path forward, and the government must support both.

"Over 200 colleges have updated their B Tech and M Tech programs to align with the AI era. The industry is working on a common curriculum, similar to our approach in telecom and semiconductors," he said.

Highlighting Karnataka's role, Vaishnaw said the state has benefited significantly from the electronics component scheme and the electronics manufacturing push.

"A lot of units have come up in Karnataka. For instance, one electronics manufacturing factory near Bengaluru will employ about 40,000 people in a single location," he said.

He added that Bengaluru plays a key role in the semiconductor sector and noted that two manufacturers have shown interest in AI server manufacturing, though he did not disclose details.

"They have expressed intent to set up in India. Once finalised, they will announce the names," he said.