India on Thursday approved a national-level artificial intelligence initiative with an investment outlay of 103 billion Indian rupees ($1.25 billion), according to an official statement.

"The India AI mission will establish a comprehensive ecosystem catalyzing AI innovation through strategic programs and partnerships across the public and private sectors," a government statement said late Thursday after a Cabinet meeting chaired by Indian Prime Minister Narendra Modi.

The initiative will involve the establishment of an AI innovation center, a platform for datasets, and increased startup financing, the statement noted.

According to the government, the India AI Mission will aim to "propel innovation and build domestic capacities to ensure the tech sovereignty of India."

"It will also create highly skilled employment opportunities to harness the demographic dividend of the country. India AI Mission will help India demonstrate to the world how this transformative technology can be used for social good and enhance its global competitiveness," the statement said.