Global AI Conclave: MeitY aims to lower GPU prices without harming manufacturers, says Meity secretary S Krishnan

MeitY Secretary S Krishnan at the CNBC-TV18 and Moneycontrol Global AI Conclave in Bengaluru on November 22

The Ministry of Electronics and IT (MeitY) strives to balance affordability and fairness as it scales up India’s AI infrastructure. Through bulk procurement of GPUs under the IndiaAI Mission, the government aims to lower prices without causing losses to manufacturers, MeitY secretary S Krishnan said.

“This is not about driving down GPU prices to cause losses to anybody but about offering a level playing field,” Krishnan said during the CNBC-TV18 and Moneycontrol Global AI Conclave held on November 22 in Bengaluru.

He added that the first round of bids, opening on November 28, has received strong interest, following multiple consultations with stakeholders.

MeitY’s current approach avoids traditional viability gap funding, which could exclude existing GPU capacity providers. Instead, it allows both established players and new entrants to participate in bids, ensuring maximum utilisation of available infrastructure.

“Some companies have already started building GPU capacity, and others are planning to. By offering visibility into demand and letting all players bid, we ensure that no one is excluded while creating a competitive environment,” Krishnan explained.

The ministry remains open to subsidising GPU usage for specific needs like research and innovation to support accessibility further.

Krishnan also highlighted how the National Supercomputing Mission (NSM) is being reoriented to include AI-focused compute alongside traditional HPC capabilities. Plans for an upgraded NSM 2 are underway, providing additional opportunities to expand AI infrastructure.

“These levers allow us to scale AI computing flexibly and efficiently, ensuring that India’s AI ambitions stay on course,” he said.

Under the IndiaAI Mission, MeitY is complementing its compute expansion with significant investments in AI skilling and applications. Over ₹1,900 crore has been allocated for skilling initiatives over five years, including 350 student projects and funding for PhD scholars across 14 institutions, Krishnan informed.

On the applications side, the ministry’s first call for AI proposals received an overwhelming response, with evaluations by an expert committee underway. A second call for proposals is expected in December.