Google, Amazon and Microsoft have collectively committed more than $67.5 billion toward artificial intelligence, cloud infrastructure and digital manufacturing projects in India over the past year.
The pledges spread across investment windows stretching to 2030 have positioned India as a central node in the global AI buildout. But economists and analysts warn that without domestic semiconductor capabilities and adequate power and water infrastructure, the country risks hosting foreign-controlled AI systems rather than building its own.
Amazon has committed $35 billion by 2030, focused on AI infrastructure, cloud services and exports, one of the largest foreign technology pledges India has attracted. Microsoft has announced $17.5 billion between 2026 and 2029 for cloud data centres and AI infrastructure. Google has unveiled a $15 billion plan centred on Andhra Pradesh’s Visakhapatnam, where it is developing what it describes as a “gigawatt-scale AI ecosystem”.
| Company | Committed Investment | Focus Areas |
| $15 billion | AI data centres, server & drone manufacturing | |
| Amazon | $35 billion (by 2030) | AI, cloud, exports |
| Microsoft | $17.5 billion (2026–2029) | AI infrastructure, cloud |
| Total | ~$67.5 billion |
Union Electronics and IT Minister Ashwini Vaishnaw said on Friday that Google is exploring additional investments in India across AI infrastructure and the manufacturing of servers and drones. Speaking during a groundbreaking ceremony in April in Visakhapatnam, Vaishnaw said India is “poised to emerge as a major trusted value chain and supply chain partner to the world in electronic manufacturing”.
Last month, Google launched its India AI Hub project in Vizag in partnership with AdaniConneX and Nxtra by Airtel. The project includes three large data centre campuses.
Structural problems remain
Chairman of Rockefeller International and Founder of Breakout Capital Ruchir Sharma has argued that the investment figures mask a deeper structural problem. Speaking at The Indian Express’s Express Adda, Sharma said that global investors increasingly view India as falling behind in the AI race.
Sharma said that the core issue is that the current AI boom is fundamentally different from the IT outsourcing era. Where India’s software services model aligned with global demand in the early 2000s, AI competition is centred on building core infrastructure, semiconductors, computing power and memory systems.
“That’s the race,” Sharma said. “India, unfortunately, just doesn’t have that,” he added.
The Economic Survey 2025-26 has already highlighted elements of this concern. While it argued that AI remains in a relatively early stage globally, giving India a window to shape its own technological future, it also acknowledged that “power, finance and especially water remain binding constraints” for scaling AI infrastructure.
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Centre working towards closing gaps
The government has accelerated policy measures to close the gap. In April 2025, the Ministry of Electronics and IT notified the Electronics Components Manufacturing Scheme (ECMS), while the Union Budget 2026-27 increased its allocation to Rs 40,000 crore to boost local manufacturing capacity.
The semiconductor push has also intensified through the India Semiconductor Mission (ISM), which offers up to 50% fiscal support for fabrication and OSAT projects. On 9 April 2026, the Centre formally notified a Special Economic Zone for Tata Semiconductor’s first fabrication plant in Dholera, Gujarat.
India’s electronics sector has expanded nearly six-fold over the past eleven years and generated around 25 lakh jobs, according to a PIB release in February, though these are government figures and have not been independently verified.
Geopolitical advantage to India
Geopolitical dynamics are also working in India’s favour. Multinational companies seeking to diversify supply chains away from China are exploring India as an alternative manufacturing base, adding commercial logic to the policy push.
India is clearly becoming central to the global AI expansion strategies of the world’s largest technology firms. The deeper question is whether the country can convert foreign investment commitments into domestic technological capability.
That outcome depends on whether India can build its own semiconductor manufacturing base, resolve power and water infrastructure constraints and develop indigenous AI platforms. Without those foundations, analysts warn, the current investment wave could leave India as the host of a technological revolution designed and controlled elsewhere.