Which Indian State Leads the AI Race?
At its 47th Annual General Meeting (AGM), Reliance Industries made headlines with a bold new AI vision, marking what might well be India’s AI moment. The company introduced the Jio Brain, Jio AI-Cloud, Jio Phone Call AI, and the vision for a national AI infrastructure. While the AGM showcased Jio’s advancements in the AI race, it also threw the stage open for states across the country to accelerate their own AI developments. So, how is each of them stepping up their game to meet the country’s AI mission? Indian States’ AI and Cloud Game Indian states are coming up with unique initiatives to position themselves as leaders in the AI field. Karnataka, for example, recently signed a letter of intent with the World Economic Forum (WEF) to establish a dedicated AI centre, aiming to establish itself as a global AI hub. At the WEF meet in Davos, the state signed eight memorandums of understanding with global firms, securing investments worth INR 23,000 crore across AI, citizen services, sustainability, and e-governance. Similarly, Telangana is also climbing up the ladder by setting up an AI City near Hyderabad. Spread over 200 acres, it will house companies specialising in AI. In Andhra Pradesh, chief minister N Chandrababu Naidu has directed officials to develop Amaravati as a city focused on AI. Recently, Google signed an MoU with the Tamil Nadu government with an aim to create impactful and scalable AI solutions in key areas such as AI start-up enablement, skilling, and industrial ecosystem enablement, including MSMEs. Earlier in February 2024, the tech giant signed an MoU with the Maharashtra government too. The company also announced the launching of a state-of-the-art AI Centre of Excellence at the Indian Institute of Information Technology (IIIT), Nagpur. Further, the Andhra Pradesh government has also announced its plans to sign an MoU with tech giant Google for the initiative ‘AI for Andhra Pradesh, powered by Google’. Southern states are not the only ones that are advancing. Things have been promising up north too. The Delhi government is considering the establishment of an AI hub at its proposed Electronic City in Baprola, offering facilities for companies in electronics design and manufacturing. In Uttar Pradesh, Lucknow is fostering AI innovation through its Centres of Excellence and aims to develop an AI City that integrates technology, research centres, and educational institutions. The state government has allocated 40 acres in Nadarganj Industrial Area to support this ambitious project. Moreover, Assam is making a mark in the semiconductor industry by leasing over 170 acres to the Tata Group for an INR 27,000 crore fab. The Budget Scene Coming down to budget allocations, only a few states have mentioned AI in their February 2024 budget. Kerala has announced plans to introduce a dedicated AI policy aligned with ESG goals within this fiscal year. The Kerala State Industrial Development Corporation (KSIDC) will offer share capital investment of up to INR 5 crore with AI entities that have a minimum investment of INR 10 crore. Karnataka chief minister Siddaramaiah announced that the state is set to establish an AI/ML administration unit. Additionally, a stipend of INR 15,000 will be provided to 200 engineering graduates enrolled in vocational training courses related to AI/ML at institutions like IISc, IITs, and NITs. Meanwhile, Tamil Nadu is set to establish the Tamil Nadu Artificial Intelligence Mission to develop guidelines for leveraging AI in various fields, including education, employment, research, and medicine. However, other states have not mentioned the budget allocation or policies for AI development in their budgets. Backing up the states’ AI momentum, the central government, in its Union Budget 2024-25, allocated INR 551.75 crore to the AI Mission, emphasising its commitment to advancing AI research and applications. Semiconductor Push At a recent media briefing at the Vikasa Soudha, Karnataka IT/BT minister Priyank Kharge highlighted the remarkable achievement and said, “With INR 21.56 crore investment, we’ve supported 200+ innovations, creating 800 ESDM jobs. Semiconductor Fabless Accelerator Lab (SFAL) startups have raised INR 140 crore, valued at INR 500 crore collectively.” In Tamil Nadu, Applied Materials India Pvt has entered into an agreement with the state government to establish an advanced AI-enabled Technology Development Centre of Excellence in Chennai. Telangana is also making waves in this sector, with Kaynes Technology India Ltd signing an MoU with the state government to set up an INR 2,800 crore facility for Outsourced Semiconductor Assembly and Test (OSAT) in Hyderabad. Also, Kaynes Technology secured the Gujarat government’s approval to set up a semiconductor unit in Sanand. This facility will have the capacity to produce 6.3 million chips per day, backed by an investment of INR 3,307 crore. AI Everywhere Apart from the semiconductor or big tech AI partnerships, states are also spearheading smaller AI initiatives. States like Kerala, Tamil Nadu, Odisha, and Punjab are pushing towards integrating AI into education. Kerala is leading with its Digital University becoming the first in India to develop an AI processor. With respect to traffic management, states like Goa and Sikkim plan to launch AI-driven systems. States are also working to address the concerns of rising crime rates in the country. For instance, the Maharashtra government has launched — the Maharashtra Research and Vigilance for Enhanced Law Enforcement (MARVEL). MARVEL is set to enhance intelligence capabilities and improve crime prediction, making the state the first in the country to create an independent entity for AI in law enforcement. With AI developments accelerating rapidly across India, it may be difficult to pinpoint a clear leader. However, based on the diverse initiatives and partnerships underway, Karnataka, Tamil Nadu, and Telangana might be at the forefront. Rest assured, other states are not lying dormant!
Backing up the states’ AI momentum, the central government, in its Union Budget 2024-25, allocated INR 551.75 crore to the AI Mission.
Indian states are coming up with unique initiatives and policies to position themselves as leaders in the AI field.
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