India has approved a ₹100 billion ($1.1 billion) government-backed venture capital initiative aimed at accelerating investment in artificial intelligence, deep-tech startups, and advanced manufacturing. The cabinet-approved program, first outlined by the finance minister in the 2025 budget, will operate as a fund-of-funds that channels public capital through private investors to support early-stage founders, strengthen domestic venture capital firms, and expand startup activity beyond major technology hubs. IT minister Ashwini Vaishnaw pointed to rapid ecosystem growth, noting India’s startup count has expanded from fewer than 500 in 2016 to more than 200,000 today.
At the same time, OpenAI CEO Sam Altman highlighted India’s growing importance in the global AI landscape, reporting that the country now has approximately 100 million weekly ChatGPT users, making it the platform’s second-largest market after the United States. OpenAI recently opened a New Delhi office and introduced lower-cost offerings tailored to India’s price-sensitive market.
The developments coincide with the India AI Impact Summit in New Delhi, where global AI leaders and policymakers are gathering to discuss AI adoption, infrastructure, and economic impact in one of the world’s largest internet markets.
