AI, semiconductors, quantum tech next major frontier for India: Sitharaman

India's Union Finance Minister Nirmala Sitharaman recently called for increased investment in artificial intelligence (AI), semiconductors, and quantum technology, highlighting these as the next major frontiers for the country. Addressing a fireside chat held by the IIT Madras Alumni Association in Bengaluru, Sitharaman stressed the need to build the required hardware, skills, and institutional ecosystem to harness these emerging technologies.

Sitharaman noted that while India has made progress in AI, there is a perception abroad that the country has missed the AI bus due to the absence of significant AI companies listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). She acknowledged that many AI startups are still wary of listing their companies on the stock market due to the extensive compliance requirements, but emphasized that listing offers its own benefits.

The minister pointed out that if AI companies were listed on the stock market, foreign writers might become aware of the funding opportunities and the establishment of new institutions in the country. She urged India to address such perceptions and get listed to attract global attention and investment.

Sitharaman emphasized the importance of strengthening India's existing AI ecosystem through increased investment in hardware and training. Despite the call to slow down the pace at which innovators are coming up in the AI field, she still believes that India, given its current position, requires more investment to bring hardware and teachers to institutions that need to constantly upgrade their knowledge and skills.

India's MSMEs, spanning various manufacturing sectors, need AI solutions to improve productivity and compete globally, according to Sitharaman. Therefore, investment in AI is seen as the next major frontier. She stressed that the focus should be on determining the level of investment rather than questioning whether AI should be pursued.

Looking ahead, Sitharaman highlighted the need for a substantial investment in infrastructure in AI, semiconductors, and quantum technology. She stressed the importance of academia and industry working together to build capabilities in these fields. Additionally, she highlighted the potential for greater investment in defense production, particularly in emerging technologies such as unmanned systems and drones.