Sitharaman: India’s Next Big Infrastructure Bets Should Target AI, Semiconductors, Quantum

The remarks came at the 7th IITMAA Sangam conference in Bengaluru, which convened policymakers, industry leaders, academics and startups under the theme of Atmanirbhar Bharat — Building a Self‑Reliant India. The event focused on transforming India's capabilities across technology and manufacturing.

Nirmala Sitharaman said India's transformation has relied on better institutions, private participation and enabling policy. She recommended that the country's next round of large infrastructure investments concentrate on three technology areas: artificial intelligence, semiconductor chips and quantum computing.

Sitharaman framed the choices as strategic and economic. Semiconductors and quantum technologies relate to domestic hardware capability and supply‑chain resilience. AI is framed as a productivity multiplier that must be embedded across sectors so India's businesses — especially small manufacturers and component suppliers — can compete internationally.

MSMEs and startups: practical needs

Sitharaman singled out MSMEs as needing accessible AI solutions to improve productivity across production lines and operations. She also said pre‑revenue deep‑tech and hardware startups need patient capital and new early‑stage funding mechanisms to bridge long development cycles and high capital requirements.

The finance minister pointed to IIT Madras's initiative to create a fund to handhold startups as an example of how academia, industry and government can work together. The conference showcased cross‑sector discussions on defence technologies, space, digital financial infrastructure, semiconductor manufacturing and sustainable infrastructure.

Education Minister Pralhad Joshi highlighted growth in India's electricity capacity and the increasing contribution of renewables, noting that such infrastructure underpins technological self‑reliance and domestic manufacturing. IIT Madras reported growth in startup activity, patents and alumni contributions.

Practical implications for policy and investment

If government and private capital direct large infrastructure investment toward AI, semiconductors and quantum computing, expect policy measures and funding instruments to follow: incentives for local chip fabs, research and commercialization grants for quantum technologies, and targeted programs to deploy AI in MSME supply chains. The finance minister also called for sustained collaboration to translate talent and technology into sustained GDP growth.

• MSMEs: Look for programs that provide affordable AI tools and training to raise productivity.
• Deep‑tech startups: Anticipate calls for patient capital and early‑stage funding initiatives tied to academic incubators.
• Investors and industry: Expect policy attention and potential incentives for semiconductor fabs and quantum research facilities.
• Academia: Continued role in incubating startups and structuring funds that bridge research to commercialization.

At IITMAA Sangam, the finance minister set a clear priority list for infrastructure investment: build capacity in AI, semiconductors and quantum computing while expanding technology access across agriculture, energy and manufacturing. She positioned collaborative funding models and targeted capital as necessary to support MSMEs and hardware startups that will use these technologies to scale and compete globally.