India Flags AI & Chip Delays
India’s parliamentary panel has publicly flagged delays and under‑utilisation of funds in national AI and semiconductor schemes, warning bureaucratic inertia could undermine the country’s ability to compete in critical tech sectors (hindustantimes.com). That critique raises timeline and execution risks for multinationals counting on India as an alternative node in the global chip and AI supply chain.
The findings appear in the “Twenty‑Fourth Report” of the Standing Committee on Communications and Information Technology on Demands for Grants (2026‑27), which was presented in Parliament on March 16, 2026. (timesofindia.indiatimes.com) The report notes MeitY’s budget estimate for 2026‑27 at Rs 21,632.96 crore versus Rs 26,026.25 crore in BE 2025‑26, a reduction the ministry links to the scheduled closure of the Large‑Scale Electronics Manufacturing (LSEM) PLI on March 31, 2026. (wol.com) The committee recorded execution delays in semiconductor projects and said agreements have been slow because approved firms must meet complex conditions before fiscal support is released, according to ministry evidence taken on February 24, 2026. (wol.com) The panel highlighted under‑utilisation historically: in 2023‑24 the ministry reportedly spent about Rs 681.11 crore of Rs 1,503.36 crore allocated for semiconductor and display schemes (roughly 45% utilisation), a shortfall the panel has cited in earlier reviews. (telecom.economictimes.indiatimes.com) India AI Mission spending was flagged as relatively low despite allocations, and the committee urged bolstering institutional capacity for cybersecurity and data protection as a precondition for scaling AI infrastructure. (hindustantimes.com) The report records that lower first‑half spending and delays in signing semiconductor agreements were a key reason the finance ministry trimmed MeitY’s 2026‑27 allocation, an observation the committee said reflects planning and monitoring gaps the ministry must address. (business-standard.com)
