IndiaAI Data Labs Network: Integrating AI For Viksit Bharat

Policy Update
Gautham Shine

Background

Source: https://indiaai.gov.in/

The rise of AI and India’s journey towards the flagship process of the IndiaAI mission, which kicked off on March 7, 2024, under the Ministry of Electronics and Information Technology, under the banner of IndiaAI, which is a section of the Division of Business under Digital India Cooperation. The budget allocated for this flagship mission is well over and above almost 10,000 crores for over five years time with the mandatory sections and actors of startup financing, skill building, data access,  governance of safe AI, proper infrastructure, complete application building, and local model productions.

When we talk about India’s AI and its future expertise, that’s when IndiaAI Data Labs Network comes into the picture. Focusing purely and mainly towards the tier 2 and 3 cities where the reach and expansion of AI and technology is minimal and absent, this setup network works as a bridge that unites the skill and infrastructure gap.

AI education and skills need to be extensively decentralized and maximized to reach across the whole nation, not just tier 1 cities, if the nation wants to reach full AI and digital literacy and keep in track with the projected number of almost close to 200 billion USD AI market share by the year 2030 at least. The major actors or institutions here that can expand this are the Polytechnic, ITI, and NIIELIT’s.

Functioning 

Source: IndiaAI(Nov 06, 2025)

With three interlinked levels, the IndiaAI Data Labs Network works like a partnership-driven architecture.

27 Labs for NIELIT – The first level of distribution of these labs comes directly under NIELIT, 2nd and 3rd tier cities, which are among the best and highest-quality research labs in the country. As seen, these come under the cities of Patna, Lucknow, Muzaffpur, Gorakhpur, Baxar, Aurangabad, and Shimla. Delhi NIELIT’s main lab and infrastructure will be the foundational and reference model for all the other labs to look upon, and a total and estimated amount of almost 67 to 69 lakh will be distributed over three years.

The four major courses covered under these labs will be: Ethical and Responsible AI Principles, Data Annotation for all media formats, along with Data Curation using Python, and Basic concepts of AI and Data Science for the foundation.
Intel India Partnered Labs – This is the second level of architecture where the state-of-the-art next-level labs are established with the joint venture of Intel India in these three places: Mhow in Madhya Pradesh, Mokokchung in Nagaland, and Mohali in Punjab.Intel plays a vital role here by providing an adequate and proper platform, AI tools and infrastructure.

Polytechnic and ITI Integrations – This is the third and final layer, where almost close to 600 labs are the target accomplishment, with around 543 labs distributed solely within the ITI and Polytechnic institutions. As of the latest report, around close to 170 of these institutions have been nominated for approval. The National Council for Vocational Education and Training plays a major part in this process with its structure and academic framework.

When the high school level is analysed for this foundation the YUVA AI initiative comes to the action for the base and foundational level at the high school level and also when looking the next higher category of students the other platforms like FutureSkill , YUVA AI for All and the flagship premier programme The IndiaAI Fellowship Programme contributes.

Performance from 2024 to 2026

The following constitutes of PIB press release of 2025 December , MeitY reply for the parliament of July 2025 , IndiaAI official website release of November 2025 and DD news report October 2025 

Source: PIB (Dec 2025), MeitY Lok Sabha/Rajya Sabha replies (Jul 2025), IndiaAI official website (Nov 2025), DD News (Oct 2025)

When analysing the data from PIB,  and connecting from the previous points on the levels of distribution, an idea can be put forward that there has been a positive impact from a single lab in Delhi to almost 27 premier labs, and the future prospect for the second and third level labs and networks.

Impact

Three major societal and structural impacts are decisive for this project :

AI Access for All – The reach of AI innovation and technology extends well beyond the metro cities and towns. This has a huge impact on the potential power and influence AI and its components possess on almost half a billion formal and informal workers in India as seen in a report by NITI AYOG on the AI for Inclusive Societal Development. The concept of Inclusive data and AI adaptation aligns with the IndiaAI governance guidance and the expansion and impact these network labs possess.

Work Ready Environment – When these labs and networking systems are embedded within the national and state-level institutions and their core frameworks align it directly and indirectly positively affects the roles of students, professionals, and those looking for jobs. Real-world certification courses, along with in-world usage and practices, enable a much more effective way ahead for closing the gap between AI and Digital Literacy among individuals.

Building a proper AI and Digital Ecosystem – The interaction of these labs and networks with other companies and future fellowships, stipends, and job opportunities not just limits its impact to just one sector, but by creating a whole new ecosystem within the already existing one and developing it even further. Grassroots-level innovation and compilation are tested throughout the India AI Impact Summit.

Emerging issues

Policy and Governance issues – Privacy and data usage are a huge concern and leave a void in the already existing DPDPA rules, and also other policies and governance models already existing. The notion of ethics and norms in handling individuals’ data of all types must be looked upon seriously through policy and data governance. Also, regarding AI literacy and education for proper usage and handling of data, AI tools, and services, there should be proper guidelines and instructions provided and explained to everyone.

Inclusion criteria –  currently, there is no reservation or quota for women or special categories in this area, where this is pretty much needed for women and SC/ST or other lower groups who are already neglected and need quotas for this scenario also.

Finished Product – As of the latest and ongoing numerical data, there is no clear information and numbers on whether any have completed NCVET courses or certifications, and the efforts are more focused on establishments rather than outputs, like real-world results or completions. 

Limitations in Experts – In India, there is huge underdevelopment in experts, teachers, and practitioners in the relevant AI field for this project, and even studies show that. Trained instructors need to be assigned and recruited more, not just establishments, labs, and institutions, as mentors are equally important as equipment. 

Connectivity and Technological reach  – The issues with power supply shortages and digital infrastructure imbalance in tier 3 cities can directly affect this project and the labs as they run on these two factors.

Way Forward

This project is a truly innovative and premier-level flagship lab and network setup that focuses mainly on smaller cities and towns through the already existing institutions and systems . The vision ‘AI for All’ is the phrase that truly resonates through this framework and system. But the already established future prospects and ideas should come into effect immediately and strictly to take this to the next level. The 570 plus labs to be completed in a strong and structural manner, with proper valuation and numbering of the completion, and certification of the graduates and students. Also, another important factor is the conjoining of these labs with the AIKosh datasets that represent the country’s sovereignty and identity.

With the note of Viksit Bharat 2047, not just the amount of GPUs or startups or technological advancements, these labs too play a major role in the development and expansion of the country’s range and depth in the AI race.

References and Important Links

AI Digital News. (2025, December). A year later, is IndiaAI Mission delivering enough? AI Digital News. https://aidigitalnews.com/ai/a-year-later-is-indiaai-mission-delivering-enough/

Carnegie Endowment for International Peace. (2025, February). The missing pieces in India’s AI puzzle: Talent, data, and R&D. https://carnegieendowment.org/research/2025/02/the-missing-pieces-in-indias-ai-puzzle-talent-data-and-randd

ETV Bharat. (2025, September 19). New Delhi to host India-AI Impact Summit 2026. ETV Bharat. https://www.etvbharat.com/en/!bharat/new-delhi-to-host-india-ai-impact-summit-2026-ashwini-vaishnaw-enn25091900198

IMPRI Insights. (2025, March). IndiaAI Mission (2024): Empowering innovation, infrastructure & inclusive growth. IMPRI Impact and Policy Research Institute. https://www.impriindia.com/insights/indiaai-mission-2024/

IndiaAI Mission, Ministry of Electronics & Information Technology. (2024). IndiaAI Mission — official website. https://indiaai.gov.in

IndiaAI Mission, Ministry of Electronics & Information Technology. (2025, November). IndiaAI Data & AI Labs: Empowering India’s youth for jobs in the data economy. IndiaAI. https://indiaai.gov.in/article/indiaai-data-ai-labs-empowering-india-s-youth-for-jobs-in-data-economy

International Association of Privacy Professionals. (2025, October). Global AI governance law and policy: India. IAPP. https://iapp.org/resources/article/global-ai-governance-india

National e-Governance Division, Ministry of Electronics & Information Technology. (2025, September). AI for all: India’s blueprint for a smarter future. NeGD. https://negd.gov.in/blog/ai-for-all-indias-blueprint-for-a-smarter-future/

Observer Research Foundation. (2025, December). Upskilling India for the AI transformation. ORF. https://www.orfonline.org/expert-speak/upskilling-india-for-the-ai-transformation

Office of the Principal Scientific Adviser, Government of India. (2025, December). Democratising access to AI infrastructure [White paper]. https://psa.gov.in/CMS/web/sites/default/files/publication/WP_Democratising%20Access_V3.0_29122025A.pdf

Office of the Principal Scientific Adviser, Government of India. (n.d.). IndiaAI FutureSkills pillar — artificial intelligence. https://www.psa.gov.in/ai-mission-initiatives

Press Information Bureau, Government of India. (2024, March). Cabinet approval: IndiaAI Mission. Ministry of Electronics & Information Technology. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2009839

Press Information Bureau, Government of India. (2025, December 30). Transforming India with AI [Press note]. https://www.pib.gov.in/PressNoteDetails.aspx?id=156786&NoteId=156786&ModuleId=3&reg=3&lang=1

Skill Reporter. (2026). 543 labs to be set up in ITIs and polytechnics across India. Skill Reporter. https://www.skillreporter.com/news/ncvet/ai-labs-nielit-iti-polytechnics-india/

Storyboard18. (2025, July 23). IndiaAI approves 27 data labs in tier 2 and 3 cities. Storyboard18. https://www.storyboard18.com/how-it-works/indiaai-approves-27-data-labs-in-tier-2-and-3-cities-each-eligible-for-rs-68-98-lakh-over-3-years-76304.htm

About the Contributor 

Gautham Shine is a linguist and policy researcher with a Master’s in South Asian Studies from Pondicherry University (Central University), where his thesis examined India’s Digital Personal Data Protection Act 2023. He is currently a Research Intern at IMPRI – Impact and Policy Research Institute, where he authors and publishes policy update articles across governance and public policy themes. 

Acknowledgement 

The author extends his sincere gratitude to the Sneha Sharma, Simona Hughes and IMPRI team for their invaluable guidance throughout the process.

Reviewers

Sneha Sharma and Simona Hughes

Disclaimer

All views expressed in the article belong solely to the author and not necessarily to the organisation.

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