PM Modi Bets On Tech To Empower Youth With AI Skilling, Online Coaching

Addressing the nation on the occasion of the country’s 80th Independence day, Prime Minister Narendra Modi reiterated the country’s ongoing push to promote AI in the country. Addressing the nation from Red Fort, Modi said that the Central government has decided to enable people to upskill in the rapidly expanding field of AI over the next year.

“We have decided that 1 Cr young people will be trained in AI skills over the next year, enabling India’s youth to build the capabilities needed to lead in the rapidly expanding field of AI,” he said. The PM added that the government’s three core focuses would be on cost, quality and skill as it looks to promote the tech’s adoption.

The PM cited experience from the Centre’s recently hosted India AI Impact Summit, where he had also reiterated that AI should be accessible for all and the country is eyeing an AI future that advances innovation, strengthens inclusion, and moves forward by incorporating human values.

The nascent sector has begun showing signs of how it can become a significant contributor to the nation’s economy, projected to contribute an estimated $1.7 Tn to India’s GDP by 2035. The market is projected to reach $126 Bn by 2030, scaling up significantly from early-stage pilots as of now into workflow-native production systems. 

As the industry grows in size, upskilling in AI has become indispensable for India’s youth. AI-related job demand is growing 75% faster than non-AI roles leading to a shift in the routine white-collar and entry-level IT roles across industries.

Beyond AI training, “Yuva Shakti for Viksit Bharat@2047” emerged as a key theme of Modi’s speech today. “The youth have a big role in the journey to become a Viksit Bharat. The biggest beneficiaries of Viksit Bharat will be the youth of the country,” he said.  In line with this, Modi announced that the government would be looking to democratise education for competitive examinations.

Modi Announces Free Online Coaching For Competitive Examinations

The Prime Minister also announced free online coaching for students preparing for various competitive examinations, saying the initiative would help ease the financial burden on families.

Addressing the growing dependence on coaching classes, PM Modi said such expenses often put significant pressure on poor and middle-class families. He noted that many parents feel compelled to enrol their children in coaching centres due to social pressure and concerns about keeping up with other families.

He urged families to make use of the proposed system, saying it could help them save thousands of crores of rupees spent on coaching while allowing parents to remain closer to their children.

PM Modi said the government would leverage India’s digital public infrastructure, along with its pool of teachers and other talent, to create a comprehensive network offering free online coaching to young people preparing for competitive examinations.

The test prep market is considered to be one of the largest sub-segments in the Indian education industry, with millions of students attempting examinations across fields, sectors and levels every year. The India test preparation market is expected to become a $2.9 Bn industry by 2034, growing at a CAGR of 27% from $311.8 Mn in 2025.

Online coaching for competitive exams has been one of the main stays for the Indian edtech sector, which houses the likes of PhysicsWallah, Unacademy and upGrad. For instance, more than half of PhysicsWallah’s ₹1,000 Cr top line in Q1 FY27 was driven by online coaching and test prep. 

While details of the free online coaching initiative are yet to be disclosed, the move is likely to have a significant impact on India’s edtech startup ecosystem. 

Semiconductor Push Gains Momentum With More Plants In Pipeline

Speaking about the semiconductor sector, PM Modi said India has already begun production at three semiconductor plants, while another seven to eight plants are expected to be operationalised over the next one to two years.

“In today’s digital world and the age of technology, we understand the importance of chips. Whether it is electronic goods, medical equipment or transportation systems, chips are indispensable to all of them. Without chips, the entire world could come to a standstill. That is why India has taken significant steps towards self-reliance in the semiconductor sector,” he said.

The semiconductor push comes as the government seeks to deepen India’s presence across the chip value chain. 

The Union Budget 2026-27 announced India Semiconductor Mission 2.0, with a focus on developing semiconductor equipment and materials, building full-stack Indian semiconductor intellectual property and strengthening domestic and global supply chains.

The programme has since received a total outlay of ₹1.28 Lakh Cr after the Union Cabinet approved Semicon 2.0 in July. This is significantly higher than the ₹76,000 Cr outlay for the original Semicon India programme.

Manufacturing, Technology At The Centre Of Sapta Dhara

PM Modi also laid out a seven-point “Sapta Dhara” roadmap for India’s journey towards becoming a developed nation by 2047.

The seven streams include manufacturing power, agriculture and food processing, technology and innovation, Gati Shakti, defence power, the green and blue economy, and soft power.

On manufacturing, Modi urged Indian companies to focus on cost, quality and scale to meet global standards and strengthen India’s position in international supply chains.

“From design to manufacturing, India must become a reliable hub in the global supply chain,” he said.

Technology and innovation formed another key pillar of the roadmap, with Modi highlighting AI, quantum computing, space, robotics and data centres as critical areas for India’s growth.

“We have already demonstrated our strength through UPI and digital public infrastructure. Now, India must take digital public technologies to every corner of the world and lead in next-generation communication technology. Made-in-India 6G should reach every corner of the world,” he said.

He further highlighted what he described as India’s economic and technological progress over the past 12 years, saying defence production has increased fourfold, electronics manufacturing sevenfold, modern railway coach production 21-fold, internet users fourfold and digital transactions 100-fold.

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