Technology-Led Infrastructure Development Gains Focus in India

Finance Minister Nirmala Sitharaman on Saturday said India’s next phase of infrastructure investment must place greater emphasis on artificial intelligence (AI), semiconductor technology and quantum computing, while calling on MSMEs to adopt AI solutions to boost productivity and strengthen their global competitiveness.

Addressing the 7th edition of IITMAA Sangam, the flagship annual conference of the IIT Madras Alumni Association (IITMAA), Sitharaman said technology and innovation must extend across all sectors of the economy, including agriculture, renewable energy and advanced manufacturing.

“India’s transformation has been driven by sustained efforts to strengthen institutions, restore confidence and open sectors to private participation, while creating policies that enable young people, entrepreneurs and innovators to contribute to economic growth,” she said.

Highlighting the opening up of the space sector, the Finance Minister said Indian startups are increasingly involved in designing and building satellites and undertaking space missions.

She also emphasised the need for patient capital and new early-stage funding mechanisms to support pre-revenue deep-tech and hardware startups, which often require longer development cycles before generating commercial returns.

“Our MSMEs, which produce everything from basic components to aircraft parts, need AI solutions to improve productivity and compete globally,” Sitharaman said, stressing that technology-led growth would require stronger collaboration across different sectors.

She cited IIT Madras’ initiative to establish a fund to support startups as an example of how academia, industry and government can work together to strengthen innovation and entrepreneurship.

Sitharaman also said India has the potential to achieve more than 10 per cent GDP growth, but reaching that level would require sustained efforts across sectors and closer collaboration to translate the country’s talent, technology and innovation capabilities into economic growth.

The conference was held around the theme “Atmanirbhar Bharat – Building a Self-Reliant India” and brought together policymakers, corporate leaders, technology pioneers, academics, startups and experts to discuss the drivers of India’s strategic and economic self-reliance.

The event was inaugurated by Education Minister Pralhad Joshi, along with Vice Admiral Sanjay Sadhu, Controller of Warship Production and Acquisition, Indian Navy; Prof V Kamakoti, Director, IIT Madras; Dr Sridhar Vembu, Chief Scientist and Co-founder of Zoho Corporation; Goda Ramkumar, Vice President, Data Science, Flipkart; Prof M Vidyasagar, FRS; and Dr Pratyush Kumar, Co-founder of Sarvam AI, among others.