Modi Government's Data Center Incentives Favor Operators Over Local Cloud Firms
Data center incentives introduced by the Modi government are perceived to favor operators at the expense of local cloud providers. Industry leaders express concerns that domestic companies investing in AI and GPU infrastructure lack the necessary support from these policies.

The Modi government's data center policy, part of the IndiaAI mission, aims to enhance domestic compute capacity but is criticized for favoring data center operators over local cloud companies. Narenda Sen, CEO of RackBank, highlights that while operators benefit, domestic cloud firms investing in GPUs and AI platforms receive limited advantages.
AS Rajgopal, CEO of NxtGen, supports this view, noting a lack of direct encouragement for cloud or AI infrastructure. This approach may hinder local innovation and growth in the cloud sector, potentially impacting the competitive landscape.




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