India’s AI And Data Centre Boom: Govt's Policy Push Meets Startup Innovation
info desk November 11, 2025 09:40 AM

New Delhi: Union Commerce and Industry Minister Piyush Goyal led a strategic CEO roundtable on Monday to enhance ease of doing business (EoDB) in the data centre and artificial intelligence (AI) sectors. The discussions centred on refining policies, streamlining regulations, and upgrading digital infrastructure to attract global investment in emerging technologies. Following the event, Piyush Goyal shared the development on social media, outlining India’s vision to lead in next-gen tech ecosystems.

According to officials, the initiative comes as India solidifies its position as a top global data centre hub. Mumbai now ranks as the second-most cost-effective city worldwide for data centre construction in 2025, per the Turner & Townsend Data Centre Construction Cost Index. Alongside Japan and Singapore, India stands among Asia-Pacific’s largest data centre markets after China. The cost competitiveness, combined with policy momentum, is likely to draw billions in foreign direct investment as global demand for secure, scalable data infrastructure surges.

In a post on X, Piyush Goyal stated, “Chaired a comprehensive discussion at the CEO roundtable on Ease of Doing Business (EoDB) in the Data Centre and Artificial Intelligence (AI) sectors. The deliberations focused on strengthening the policy ecosystem, regulatory processes and digital infrastructure to catalyse investment in next-generation technologies. Emphasised the Government's vision to position India as a global nerve centre for data-driven innovation and AI excellence. Also reinforced our commitment to building a future-ready, knowledge-based digital economy in line with the vision of #ViksitBharat.”

Notably, India’s AI sector is experiencing a breakout moment, driven by agile startups delivering enterprise-grade autonomous systems. Mumbai-based AI Overlords has deployed over ten large-scale AI agent projects, serving sovereign agencies, Fortune 500 companies, and high-growth tech startups, autonomously managing complicated workflows, including logistics and recruitment to defence component design. 

“AI agents are transitioning from tools to decision-makers,” said Nikhil Mhatre, Founder and Chief Executive Officer of of the homegrown startup. Chief Marketing Officer Shipra Mishra noted, “Enterprises seek fast, scalable, and cost-effective AI solutions, Indian firms are meeting that demand head-on.”

The analysts asserted that the convergence of policy reform and startup innovation creates powerful synergy. Piyush Goyal’s roundtable tackled critical hurdles, including land, power, and approvals, vital for data centre expansion. They further suggested that with Mumbai’s construction costs now globally competitive, streamlined EoDB measures can accelerate infrastructure growth. In turn, expanded data capacity will fuel AI model training and deployment, forming a self-reinforcing cycle.

The analysts added that India is no longer just a participant in the global AI and data revolution, but it is becoming a leader. From cost-efficient digital foundations to autonomous enterprise agents, the country is building the dual engines of tomorrow’s tech economy.

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