India’s ₹990 Crore AI Push: How 3 Centres of Excellence Are Set to Transform Healthcare, Agriculture, and Smart Cities—But What About Bengaluru and Jobs and Boosting the Start-up Ecosystem?

Tejal Desai

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The Government of India has approved Rs 990 crore to establish three Artificial Intelligence (AI) Centres of Excellence (CoEs) focused on healthcare, agriculture, and sustainable cities. The Union Minister for Education, Dharmendra Pradhan, announced this plan. 

This five-year initiative, spanning FY 2023-24 to FY 2027-28, aims to boost AI-driven innovation and research across critical sectors.

The three AI CoEs will be located in New Delhi, led by premier institutions 

  1. Healthcare CoE: AIIMS and IIT Delhi 
  2. Agriculture CoE: IIT Ropar
  3. Sustainable Cities CoE: IIT Kanpur 

These centres will collaborate with industry stakeholders and startups to develop practical AI solutions. An apex committee co-chaired by Dr. Sridhar Vembu will oversee implementation. 

IIT Ropar’s Agriculture CoE will work on integrating cutting-edge AI technologies to drive sustainable agriculture.  

IIT Kanpur’s Sustainable Cities CoE will work on Sustainable Cities, led by IIT Kanpur, and will leverage artificial intelligence for smart city planning, traffic management, and efficient resource distribution. 


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Union Minister Pradhan emphasised the transformative potential of these AI CoEs in creating jobs and boosting the start-up ecosystem. He expressed optimism that the centres will nurture a new generation of innovators, entrepreneurs, and researchers, driving sustainable development.

The initiative sparked debate when former Infosys CFO Mohandas Pai criticised the exclusion of Bengaluru, India’s technology capital. Pai tweeted: “Minister @dpradhanbjp, nothing in Bengaluru, the technology capital of India? Why are you and @AshwiniVaishnaw ignoring the South in IT, ignoring Bengaluru? Are we not part of Bharat too?” 

In response, Dr. Sridhar Vembu, co-chair of the selection committee, stated: “The committee itself had plenty of us from the South (probably the majority). Most of us came from the private sector, and the government did not tell us who we should select.” He added the locations were chosen based on a “very thorough evaluation” of proposals. 

Manish Gupta, a member of the selection committee, supported the decision: “I fully stand by our collective decisions. We made our decisions based on what we felt was good for India.” 

The Rs 990 crore investment signals the government’s commitment to AI development. The initiative’s success will depend on its ability to address India’s unique challenges and drive meaningful advancements in healthcare, agriculture, and urban planning. 

As India pursues AI leadership, balancing innovation with ethical considerations and inclusive growth will be crucial. The government aims to ensure these CoEs contribute to national goals while enhancing India’s position in the global AI landscape.

This AI push is part of the government’s broader vision for ‘Viksit Bharat’ (developed India), with a strong emphasis on harnessing AI for the public good. The initiative is expected to generate a lasting impact, building high-quality human resources capable of driving AI advancements in critical areas such as healthcare efficiency, food security, and urban sustainability.

As these CoEs take shape, their ability to foster collaboration between academia and industry will be key to translating research into real-world applications that benefit Indian society.

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