Hyderabad to Play a Key Role in India’s AI, Semiconductor and Electronics Growth under Prime Minister Narendra Modi’s Vision
HYDERABAD, JULY 11, 2026: Union Minister for Electronics & Information Technology, Railways and Information & Broadcasting, Shri Ashwini Vaishnaw, on Saturday, called upon the Indian IT industry to transform itself from a software services-led model to an “AI as a Service” model, leveraging India’s trusted global reputation and skilled talent pool.
Shri Vaishnaw was addressing an Industry Leader Townhall on “The Role of Technology in Building Viksit Bharat 2047”, organised by the Hyderabad Software Enterprises Association (HYSEA) in Hyderabad. The event was followed by a roundtable interaction with industry leaders. Union Minister for Coal and Mines Shri G. Kishan Reddy also participated in the programme.
Addressing industry leaders, Shri Ashwini Vaishnaw said India’s next phase of growth will be driven by Artificial Intelligence, semiconductors, electronics manufacturing and advanced infrastructure, all aligned with Prime Minister Shri Narendra Modi’s vision of Viksit Bharat 2047.
Stating that Artificial Intelligence has fundamentally transformed the IT industry, the Minister said every new AI model brings new capabilities and opportunities. He highlighted that India’s greatest strength lies in the trust it has earned globally by understanding industries, identifying problems and delivering effective technology-driven solutions.
Emphasising the need for a strategic shift, Shri Vaishnaw said the Indian IT industry must now move beyond the Software-as-a-Service model and evolve towards providing AI as a Service. He said this transformation should be driven through close collaboration between industry and academia. Referring to recent initiatives, he said NASSCOM, in partnership with the Government, has developed a comprehensive AI curriculum which has been shared with the Ministry of Education and AICTE to ensure students receive exposure to the latest developments in Artificial Intelligence.
Highlighting the country’s progress in semiconductor manufacturing, Shri Vaishnaw said India had aspired to build a semiconductor ecosystem since the 1960s, but the vision has now become a reality due to the focused efforts of Prime Minister Shri Narendra Modi. He informed that 12 semiconductor manufacturing plants are currently at various stages of development, with three already producing chips that are being exported to Japan, Europe and domestic markets.
The Minister said India’s growing semiconductor design ecosystem, coupled with a global shortage of skilled talent, presents a significant opportunity for the IT industry. He encouraged companies to leverage their strengths in electronics, IT, design and product development to create innovative semiconductor solutions. He also informed that the Government has made advanced semiconductor design tools available to 315 universities to strengthen the talent pipeline.
On electronics manufacturing, Shri Vaishnaw said India is witnessing unprecedented growth, with mobile phones emerging as the country’s largest export category last year. He said the electronics manufacturing sector is expected to expand from the current ₹13 lakh crore to ₹20 lakh crore in the near future. In Telangana alone, the Central Government has supported the establishment of 104 electronics manufacturing companies, sanctioned four Electronics Manufacturing Clusters and established a Common Facility Centre (CFC).
Referring to infrastructure development, Shri Vaishnaw said Hyderabad is poised to emerge as a major hub under Prime Minister Narendra Modi’s development vision. He said three bullet train corridors are planned for the city, positioning Hyderabad as an important centre for high-speed rail development and economic growth.
The Minister also highlighted the significant increase in railway investments in Telangana. He said while the undivided Andhra Pradesh received around ₹880 crore annually for railway development during the UPA period, Telangana alone is now receiving more than ₹5,400 crore. He added that about 40 railway stations in Telangana are being redeveloped under the Amrit Bharat Station Scheme as part of the nationwide modernisation of over 1,300 stations.
The Minister said that Hyderabad has emerged as one of the country’s most important centres for technology-led growth and innovation. He said the city is making significant contributions in emerging sectors such as semiconductors, AI, Kavach technology, VFX and digital innovation, and will play a leading role in building India’s future in Artificial Intelligence, semiconductor manufacturing, digital public infrastructure and innovation.
Over the past decade, India has built a strong digital foundation, enabling the country to become a global leader in Digital Public Infrastructure. He noted that UPI has processed transactions worth over ₹314 lakh crore, while indigenous 4G and 5G technologies, affordable data services and world-class digital platforms are accelerating innovation and economic growth across sectors, he added.
Union Minister for Coal & Mines, Shri G. Kishan Reddy, said that development must extend beyond Hyderabad and that tier-II cities such as Warangal, Karimnagar and others should emerge as hubs of investment, innovation and employment, ensuring balanced regional growth across Telangana. He said the redevelopment of Secunderabad and Nampally railway stations, along with new railway infrastructure and 100% railway electrification, will transform connectivity and strengthen Hyderabad’s growth story.
Union Ministers Shri Ashwini Vaishnaw and Shri G. Kishan Reddy visited the Medha Bogies Factory at Kondakal and Medha Servo Drives Private Limited on Fab City Road. They reviewed manufacturing operations, assessed technological capabilities and safety preparedness, interacted with officials and employees, and inspected key facilities ahead of the commissioning phase.
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