Union Finance Minister Nirmala Sitharaman has called for increased investment in artificial-intelligence infrastructure, semiconductor manufacturing and quantum technology, describing the three areas as the likely foundation of India’s next major infrastructure cycle. Speaking at the IIT Madras Alumni Association’s Sangam 2026 event in Bengaluru, she placed hardware, computing capacity, training and institutional capability alongside conventional digital infrastructure requirements.
The minister said India needs substantially more investment in AI hardware and in the teachers and institutions responsible for continuously updating technical skills. Her remarks extended the infrastructure discussion beyond data centres and semiconductor plants to the human and institutional systems required to deploy AI across economic sectors.
Sitharaman also highlighted the need for practical AI solutions for India’s micro, small and medium enterprises. The sector spans a wide range of manufacturing and service industries, many of which require access to technology, trainers and implementation support to improve productivity and compete with companies in other markets. The focus, she said, should be on determining the scale and stage of investment rather than debating whether India should pursue AI.
Deep-tech financing emerged as a second theme. Hardware and advanced-technology startups frequently require five to seven years to commercialise products, leaving them poorly matched with funding models built around short development cycles and rapid revenue growth. Sitharaman invited academia and industry to propose structures for early-stage and patient capital that can accommodate those timelines.
She also addressed the visibility of Indian AI companies in domestic public markets. Several companies have reached or approached unicorn valuations, but the limited number of listed AI businesses can obscure the scale of activity taking place in the private market. The minister encouraged eligible companies to consider the advantages of listing, while acknowledging the compliance concerns that can make startups reluctant to enter public markets.
The investment agenda was linked to other technology-intensive areas, including defence production, unmanned systems and drones. India has expanded domestic defence manufacturing and exports, but Sitharaman said further public and private investment would be required as equipment and production technologies continue to change.
Her remarks follow the government’s approval of Semiconductor Mission 2.0 with an outlay of ₹1,27,500 crore and continuing programmes to expand domestic AI compute, quantum research and chip-design capability. They do not constitute a new budget allocation or scheme by themselves. Instead, the speech establishes a policy direction for future infrastructure formation, deep-tech capital and collaboration among government, industry and academic institutions.
The emphasis on AI hardware, semiconductors and quantum technology places computing capacity, component manufacturing and advanced research within a connected investment framework. It also broadens the definition of digital infrastructure to include commercialisation finance, institutional expertise and mechanisms that can bring advanced technology into MSME operations.
