India’s biggest quantum leap: IBM and TCS to install 156-qubit supercomputer in Amaravati

Why Are IBM and TCS Partnering on Quantum in India?

India is taking a significant leap forward in its quantum journey through a three-way collaboration between IBM, Tata Consultancy Services, and the Government of Andhra Pradesh. The announcement of plans to deploy IBM’s Quantum System Two at the upcoming Quantum Valley Tech Park in Amaravati will mark the introduction of the country’s largest quantum computer, powered by IBM’s 156-qubit Heron processor. This development not only supports India’s National Quantum Mission, launched in 2023 to elevate the country to a leadership position in quantum technologies by 2031, but also aligns with global trends in sovereign quantum infrastructure investment. As nations worldwide escalate their investments in frontier technologies to enhance scientific capacity and economic resilience, India is establishing itself as a regional hub through a public-private model that merges hardware capability with application development.

What Is the Vision Behind Quantum Valley Tech Park?

The Quantum Valley Tech Park is envisioned as the cornerstone of India’s quantum innovation strategy. Situated in Amaravati, the capital city of Andhra Pradesh, this initiative is designed to serve as a collaborative environment for R&D, application testing, and workforce development. The tech park will anchor cutting-edge infrastructure, including IBM’s Quantum System Two, alongside cloud-based quantum access, academic integration, and incubation support for startups. Chief Minister N. Chandrababu Naidu, championing the project, emphasized that the tech park would catalyse a vibrant ecosystem by attracting top-tier talent, fostering high-end job creation, and drawing global quantum investment. The deployment of IBM’s system, once finalised through export and regulatory approvals, will provide Indian researchers and institutions with access to one of the most advanced quantum machines commercially available.

How Will IBM Quantum System Two Advance India’s Research Capacity?

IBM’s Quantum System Two represents a next-generation leap in quantum processing. Equipped with the 156-qubit Heron chip, the system is engineered for modularity, improved coherence times, and algorithmic depth. For India, this translates into a new class of research capabilities, enabling simulation and optimisation tasks that classical supercomputers cannot handle efficiently. Quantum System Two will allow researchers to experiment with real-world noise conditions and scaling challenges, thereby accelerating progress in quantum algorithm development and benchmarking. Its deployment in India further integrates the country into IBM’s global quantum computing network, unlocking access to Qiskit libraries and cloud-based collaborative tools. With India’s scientific institutions seeking deeper engagement in post-classical computing, this platform provides a credible foundation to conduct original quantum research and translate it into industry-relevant applications.

What Is TCS’s Role in India’s Quantum Development?

Tata Consultancy Services is taking on a dual role as system enabler and research collaborator. The company is leveraging its Hybrid Computing framework to integrate classical compute backends with emerging architectures, including quantum systems. TCS will work closely with IBM to facilitate quantum access via the cloud, develop middleware layers that optimise cross-platform workloads, and create sector-specific quantum applications. Dr. Harrick Vin, the Chief Technology Officer at TCS, highlighted that the firm’s approach is designed to intelligently decompose large programs across CPUs, GPUs, and quantum processors to unlock performance gains. TCS will also engage with Indian universities, labs, and enterprise clients to build algorithmic frameworks that serve core industries such as pharma, automotive, and energy. By participating in the Quantum Valley Tech Park, TCS not only strengthens its own IP portfolio but also contributes to India’s larger national ambition of technology self-sufficiency.

Which Industries Stand to Benefit Most from This Collaboration?

The IBM–TCS–Andhra Pradesh partnership is expected to impact a wide range of industries with computational challenges that are beyond the reach of classical systems. In the pharmaceutical sector, quantum simulations can dramatically reduce the time required for drug molecule discovery. In the supply chain space, complex routing and inventory management models can be optimised using quantum-enhanced algorithms. Materials science research stands to benefit through atomic-level modelling that enables the design of new polymers, semiconductors, and catalysts. In energy optimisation, quantum models can be applied to grid balancing, load forecasting, and battery chemistry simulations. Cybersecurity also features prominently in the future roadmap, with quantum-resistant cryptographic protocols becoming a priority as quantum computing matures. TCS will lead industry-specific pilots, while IBM will support backend system deployment and developer access, ensuring a synergistic path from research to revenue.

How Does This Fit into India’s National Quantum Mission?

India’s National Quantum Mission, launched with a central budget allocation of ₹6,000 crore, aims to build indigenous quantum computers with qubit ranges from 50 to 1000, establish quantum communication infrastructure, and support ecosystem development over an eight-year timeline. The mission has identified strategic pillars that include R&D, manufacturing, academic training, and public-private partnerships. The Quantum Valley Tech Park fits squarely into this framework by combining global-grade hardware with domestic algorithm development and research collaboration. Andhra Pradesh’s proactive support ensures the project functions as a national asset rather than a regional experiment. Through such flagship deployments, India is attempting to bridge the translational gap between theoretical quantum mechanics and industrial implementation.

How Are Investors Viewing This Strategic Move?

Investor sentiment surrounding both IBM and Tata Consultancy Services has been cautiously optimistic, particularly as quantum computing gains traction as a medium- to long-term thematic investment category. IBM stock closed at USD 177.18 on May 1, 2025, marking a year-to-date rise of over 8 percent. This performance reflects growing investor confidence in IBM’s shift toward high-value services such as AI, cybersecurity, and quantum. Institutional flows into IBM have remained stable, bolstered by interest from ETFs focused on innovation and sovereign wealth funds seeking long-duration exposure to frontier technology. Analysts from Morgan Stanley and Bernstein maintain “Buy” recommendations, underscoring IBM’s intellectual property moat and strategic investments in recurring-revenue platforms like Quantum-as-a-Service. The India announcement enhances IBM’s geographic diversification and visibility across Asia-Pacific.

TCS stock was last traded at ₹3,645 on the NSE, showing a mild pullback of around 2.1 percent over the past month. Despite macro headwinds in the IT sector, analysts view the company’s expanding innovation footprint, including its quantum ambitions, as a positive counterweight to flat growth in traditional outsourcing. Foreign Institutional Investors and Domestic Institutional Investors have largely held or marginally increased their exposure to TCS during the April–May period. Jefferies, ICICI Securities, and Motilal Oswal maintain a “Hold” or “Add” rating, pointing to strong fundamentals, high return on equity, and a credible innovation pipeline. The hybrid computing strategy, when paired with IBM’s system access, provides TCS with a differentiator in quantum consulting and next-generation enterprise services.

FII/DII flows into India’s IT sector have been neutral to slightly positive, especially in large-cap counters associated with transformative digital infrastructure. While short-term price movements have been muted, sentiment around TCS’s involvement in the Quantum Valley Tech Park is upbeat among analysts tracking deep-tech capabilities and research-led revenue streams. With the National Quantum Mission backing this deployment, institutional interest is expected to intensify once execution milestones are met and pilot applications are demonstrated.

What’s Next for IBM, TCS, and India’s Quantum Valley?

The Quantum Valley Tech Park is currently in the infrastructure development phase, with construction underway in Amaravati. The next critical step involves securing export clearances for the IBM Quantum System Two, which is subject to U.S. licensing requirements. Final contractual formalities between IBM and the Andhra Pradesh government are expected to conclude by Q3 2025. Once live, the park will open access to IBM’s cloud-based systems while offering training, research grants, and startup incubation programmes under a national quantum roadmap. Analysts foresee this initiative expanding in scope to include other multinational tech partners and regional universities, making it a model for other quantum ecosystems across Asia.

With India aiming to build a $10 billion quantum economy by 2030, projects like this not only provide computational firepower but also catalyse job creation, intellectual property development, and sovereign technological capabilities. IBM and TCS, by embedding themselves into the foundation of this ecosystem, stand to gain long-term strategic advantage as India transitions from a classical IT services economy to a post-classical, quantum-enabled innovation engine.