The India-US interim trade settlement will facilitate a 7-fold enhance within the data centre market, stated trade stakeholders.
On Saturday morning, the 2 nations introduced a framework underneath which India will buy up to $500 billion of US merchandise over 5 years, that’s anticipated to enhance trade in expertise merchandise and GPUs utilized in data centres.
India has imported about 20,000-25,000 high-end GPUs value round $2 billion within the final two years. Already, the market is slated for vital enhance in these numbers, pushed by market demand, AI use case maturity, tax holidays and numerous different tailwinds. The current settlement will facilitate this progress in an enormous means, stated Sunil Gupta, Founder, Yotta Data Companies.
“At its core, India’s AI future will probably be formed by one easy query: how rapidly can the nation entry, deploy, and scale trusted compute at inhabitants scale. In that context, the U.S.–India expertise trade framework is a significant optimistic,” stated Gupta, including that the settlement coupled with India’s price range path indicators a transfer from transactional expertise imports to deeper, deployment-level collaborations.
An allocation of simply 8–10 per cent of the acquisition quantity to expertise merchandise can translate to $40-50 billion over 5 years – a lot increased than India’s data heart market valuation of $8.94 billion in 2025, stated Piyush Prakashchandra Somani, Managing Director and Chairman of ESDS Software program.
Additional, diminished import limitations might spur earlier projections of India’s data centre GPU market reaching $11 billion by 2033. India’s share within the international market is at the moment round 5.5 per cent however might transfer to 10 per cent with the best coverage help, translating to over $12 billion by 2032.
“Over the following 5 years, roughly 18-20 million enterprise GPUs will probably be deployed globally, representing a market worth exceeding $1.3 trillion. India’s lifelike goal, with this trade framework as tailwind, is to seize 2.3 million GPUs, transferring from 1.4 per cent to 10 per cent international share, leaping from seventh place to third place globally, solely behind the US and China,” stated Somani.
The Bharat Digital Infrastructure Affiliation (BDIA) too welcomed the event as a strategic inflection level for India’s AI and digital infrastructure ambitions.
Excessive import duties of 20–28 per cent on enterprise GPU servers made GPU-as-a-Service pricing practically 40 per cent increased than peer hubs equivalent to Singapore and the UAE.
As such, any transfer in the direction of responsibility rationalisation can cut back the price of organising GPU-ready data centres by roughly 14 per cent, unlocking large-scale investments in AI infrastructure throughout the nation.
India at the moment generates practically 19 per cent of worldwide data however hosts solely 6 per cent of worldwide data centre capability and simply 1.4 pr cent of the world’s put in enterprise GPUs. The trade framework together with hyperscaler investments exceeding $80 billion by 2030 will assist bridge this hole.
Nonetheless, BDIA cautioned that trade liberalisation should not come at the price of digital sovereignty, nationwide safety, or indigenous worth creation. It requested the federal government to think about equal market entry and requirements, nationwide safety frameworks, data sovereignty and worth retention and regulatory autonomy, to shield India’s sovereign rights.
“Entry to GPUs is essential, however entry with out sovereignty dangers turning India right into a low-margin compute colony. AI fashions educated on Indian data, in Indian data centres, should economically and strategically profit India & Indian Business,” BDIA stated.
The are pushing for short-term zero import responsibility on enterprise GPUs, a devoted PLI scheme for AI and data centre infrastructure, accelerated depreciation for GPU belongings, and regulatory readability on cross-border GPU compute companies.
Revealed on February 7, 2026
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