Can Telangana Lead India's AI Revolution? A New DPI for AI Set to Launch

Can a state-led initiative become the backbone of India’s AI revolution? Telangana certainly thinks so—and it's ready to show how.

In a bold and visionary move, the Telangana government is set to unveil India’s first state-driven Digital Public Infrastructure (DPI) for Artificial Intelligence, placing itself ahead in the national AI race. In partnership with the Japan International Cooperation Agency (JICA), the initiative aims to make AI resources more accessible and collaborative for startups, academia, and industries alike.

What is TGDeX and Why It Matters

Called Telangana Data Exchange (TGDeX), the platform will go live on July 2 and is being hailed as a game-changer for India's AI ecosystem. TGDeX is being developed by the Indian Institute of Science (IISc), Bengaluru, and will serve as a public utility to democratize access to structured datasets, developer tools, and collaborative infrastructure needed to build cutting-edge AI solutions.

With strategic and technical backing from JICA’s DXLab, the initiative is being designed as a cross-sectoral platform to power innovations in governance, health, agriculture, and more.

Speaking about the upcoming launch, Telangana CM A Revanth Reddy called on ecosystem stakeholders to join the mission. “I invite all ecosystem stakeholders to join us in realising this vision,” he said, reflecting the state’s inclusive approach to innovation.

A Full-Stack AI Ecosystem Backed by Strong Institutions

This isn’t just another policy announcement. Telangana is bringing the full force of its innovation ecosystem behind TGDeX. Key enablers like Telangana AI Mission, T-Hub, MATH (AI Centre of Excellence at T-Hub), IIT Hyderabad, and RICH (Research and Innovation Circle of Hyderabad) are all on board.

Together, these players will help TGDeX achieve its ambitious goal—to build 2,000 AI-ready datasets within the next five years. These will power everything from foundational models to domain-specific AI applications that address real-world challenges.

For startups, this is an open invitation: Access clean, well-organized, and scalable datasets to build AI models that matter. The platform aims to minimize the usual barriers around data availability and encourage faster product development and deployment.

Meanwhile in Andhra: Quantum Dreams Take Shape

As Telangana powers ahead with AI, neighboring Andhra Pradesh is eyeing a different but equally ambitious tech leap. Chief Minister N Chandrababu Naidu recently announced the operationalization of the Amaravati Quantum Valley by January 2026.

The project promises to generate 1 lakh jobs and kick off with 100 real-time use cases across governance, healthcare, and industry. With a strong tech DNA and history of future-focused policymaking, Naidu seems to be betting big on quantum computing becoming the next big leap for India’s digital economy.

Centre’s Push: Building AI from the Ground Up

The state-led initiatives come at a time when the Government of India is heavily pushing for indigenous AI capabilities under its IndiaAI Mission, launched with an outlay of INR 10,372 crore over five years.

The mission is focused on building a complete AI stack—from infrastructure to talent to foundational models. It plans to deploy over 10,000 GPUs in partnership with private tech players and academia.

Recently, ten Indian tech companies including Jio Platforms and Tata Communications were selected to manage and supply the required compute infrastructure, ensuring that startups and researchers have the muscle power they need.

India’s AI Foundational Models: Startups Step In

The Centre has also invited the startup ecosystem to help build India’s own Large Language Models (LLMs). Out of 506 proposals, four startups—SarvamAI, Soket AI, Gnani.ai, and Gan.ai—have been selected to develop homegrown LLMs, putting India firmly in the race to build indigenous alternatives to ChatGPT and Gemini.

Additionally, under the 'safe and trusted AI' pillar of the IndiaAI Mission, four responsible AI solutions are expected to go live on the mission's AIKosha portal between September and December.

Is This India's Decade for AI?

From Telangana’s TGDeX to Andhra’s Quantum Valley and the Centre’s multi-pronged IndiaAI Mission, it’s clear that India is laying down serious infrastructure for a technology-led future. What’s promising—and different this time—is the open collaboration between government, startups, academia, and industry.

For Indian startups, especially those working in AI, healthtech, edtech, and governance tech, this moment could be pivotal. Access to clean datasets, compute power, funding, and institutional backing could finally align to give rise to global AI products made in India.

So, can Telangana’s TGDeX become the blueprint for other states? Will this truly democratize AI innovation across India?

The answers lie in how quickly the ecosystem adopts and builds on this digital public good.