New Delhi, February 8 (IANS). The completion of the first phase of the trade deal between India and the US is being considered a big boost for India’s AI hardware sector, as it is expected to reduce the cost of advanced computing related equipment, which will help in increasing their manufacturing and capacity in the country.
According to an article published in Khalsa Vox news portal, this is the first time that AI computing infrastructure has been considered a strategic asset in a bilateral trade agreement between two major economies, which could have a long-term impact on India’s technological future.
Till now, the biggest problem of this sector has been the heavy import duty imposed on GPU servers, which ranges from 20 to 28 percent. This makes GPU based services in India very expensive and less competitive compared to countries like Singapore or UAE.
The article states that industry estimates show that if these taxes are reduced, the cost of building a GPU-equipped data center can reduce by about 14 percent. This can open the way for large-scale investment in the country.
This time is considered favorable for India because India produces about one-fifth of the total data of the world, but it has very less global data center capacity and the number of enterprise GPUs.
According to the article, the world’s biggest cloud and tech companies can invest more than $80 billion in India by the end of the decade. The trade deal is being seen as an opportunity that can make India a strong contender in global AI compute services.
The article also states that experts have emphasized the need for some precautions. He says that along with easy access to advanced hardware, there should also be strong policies for data security, national security and domestic value creation.
The article further states that if such policies are not made, there is a danger that India will only provide low-profit computing services and the real economic and strategic benefits will go to other countries.
–IANS
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