Amazon Backs India as AGI Hub With New $12.7 Billion AI Push

Amazon Backs India as AGI Hub With New $12.7 Billion AI Push

CIOTech Outlook Team | Monday, 04 August 2025, 09:46 IST

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  • AWS invests Rs 1.11 lakh crore to make India a global AI hub by 2030.
  • Investment will expand cloud infrastructure and support advanced AI development in India.
  • Maharashtra’s $8.3 billion allocation to create 81,000 jobs, add $15 billion to GDP.

Amazon Web Services is set to invest $12.7 billion in India through 2030, aiming to establish the country as a global hub for Artificial General Intelligence. This significant investment will focus on expanding cloud infrastructure, enhancing networking systems, and developing advanced computing resources to support large-scale AI projects.

AWS sees India’s thriving developer community and vibrant startup ecosystem as ideal for driving next-generation AI innovation.

Swami Siva Subramanian, AWS’s vice president for Agentic AI, emphasized the importance of robust infrastructure during a recent visit to India. “You need all these investments in computer infrastructure to power those future developments in a big way,” he said. He also praised India’s tech talent, noting, “The Indian developer community is one of the most vibrant,” highlighting their eagerness to adopt cutting-edge technologies.

This strategic move positions India as a potential third major player in the global AI race, amid intensifying competition between the United States and China. AWS’s investment builds on its existing presence in India, where it operates two cloud regions in Mumbai and Hyderabad since 2016. The company has already trained over 4 million individuals in cloud skills, fostering a robust tech ecosystem.

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The investment will also drive economic growth, particularly in Maharashtra, where $8.3 billion is expected to create over 81,000 full-time jobs annually and contribute approximately $15 billion to India’s GDP by 2030.

AWS will increase the capabilities of its AI services, such as Amazon Q Business, Bedrock, and SageMaker to enable Indian businesses and the government to utilize the capabilities of generative AI. As one more step, AWS will open the AWS Marketplace in India by the end of 2025, simplifying the process of software buying in companies, similar to the effect of UPI on monetary transactions.

This ambitious initiative underscores AWS’s commitment to leveraging India’s talent and infrastructure to shape the future of AI globally, while significantly boosting the nation’s economy and technological landscape.