Union Finance Minister Nirmala Sitharaman has called for greater investment in artificial intelligence, semiconductor technology and quantum technology, describing these areas as the next major frontier for India. Speaking at a fireside chat organised by the IIT Madras Alumni Association in Bengaluru, she said the country needs to accelerate efforts to build the hardware, skilled workforce and institutional ecosystem required to develop and use emerging technologies.

Sitharaman said perceptions that India had missed the artificial intelligence wave were partly influenced by the limited number of AI companies listed on Indian stock exchanges. She pointed out that several Indian AI startups had already reached unicorn status or were approaching it, arguing that stock-market listings alone do not provide a complete picture of the country's progress in the sector. She also said greater participation in public markets could help showcase India's growing technology ecosystem internationally.

The finance minister said India needs to strengthen its existing AI ecosystem through increased investment in hardware, training and skills development. She highlighted the role of academic institutions in continuously upgrading their programmes and preparing students to adapt to AI-driven changes across different sectors. Sitharaman also pointed to the growing need for AI solutions among micro, small and medium enterprises, particularly in manufacturing, as companies seek to improve productivity and compete internationally.

Also Read: Sitharaman Tells Gen Z, Gen Alpha To Put National Interest Before Personal Expectations

She said the focus should be on determining the appropriate scale and stage of investment in AI rather than questioning whether India should continue pursuing the technology. Sitharaman added that the country's next major infrastructure investments would include AI systems, semiconductor chips and quantum technology. Her comments come as India expands its semiconductor ecosystem through Semicon 2.0, which focuses on chip design, manufacturing facilities, advanced packaging, research and development, equipment, materials and talent development.

Sitharaman also highlighted the importance of closer cooperation between academia and industry in developing capabilities in emerging technologies. The government has been expanding initiatives across AI, semiconductors and quantum technology, while recent programmes have also focused on developing specialised talent and strengthening research and innovation. The finance minister's comments came during the seventh edition of IITMAA Sangam, where she also launched the IITM Unicorn Frontier Fund-I to support early-stage deep-tech startups.

Beyond emerging digital technologies, Sitharaman identified defence production as another area with scope for increased investment, particularly in unmanned systems, drones and other advanced technologies. She said India has moved from being primarily an importer to also exporting defence equipment, while stressing that further development is needed as technology continues to advance globally. She added that both private and public investment would have a role in expanding India's defence manufacturing capabilities.

Also Read: Nirmala Sitharaman Arrives in Asheville For G-20 Finance Ministers Meeting