GPU Shortages Threaten India's AI and Data Centre Growth: Economic Survey

• The Economic Survey warns that GPU shortages are a growing bottleneck for India's AI expansion and data centre plans.
• Surging demand for GPUs, coupled with constrained supply of high-bandwidth memory chips, is driving up costs and impacting compute capacity.
• Global GPU supply chain developments directly influence AI infrastructure expansion, highlighting the need for supply-side resilience.
• The Government of India, through the IndiaAI Mission, is securing high-performance GPUs from Nvidia, AMD, and Intel to offer at subsidized rates.
• India's late entry into the AI race offers an advantage, allowing for resource-efficient, application-led innovation rather than costly frontier-scale models.

Why It Matters: GPU shortages pose a significant challenge to India's AI and data centre growth, necessitating strategic supply chain resilience.