The IndiaAI mission is gaining traction, with a strong emphasis on fostering the development of indigenous foundational AI models. As part of this initiative, approximately eight local firms are expected to receive incentives to build these models, potentially positioning India as a key player in the global AI landscape.
Government Support and Objectives
The Indian government has approved the IndiaAI Mission to bridge existing gaps in the AI ecosystem and propel the country into a hub for AI technology and applications. The mission is structured around seven pillars, including:
A key objective of the IndiaAI Mission is to support Indian researchers, startups, and entrepreneurs in building state-of-the-art foundational AI models trained on Indian datasets. This initiative aims to create indigenous AI models that align with global standards while addressing the unique challenges and opportunities within the Indian context. These models can include Large Multimodal Models, Large Language Models (LLMs), or Small Language Models (SLMs) designed for specific domains or applications.
Incentives and Subsidies
The government is providing substantial financial support to encourage the development of foundational AI models. This includes a 100% subsidy on compute infrastructure costs for core model development. Additionally, a 40% GPU subsidy is available for inferencing and vertical AI applications. These subsidies aim to reduce the financial burden on companies and startups involved in AI research and development, making it more accessible for them to compete on a global scale.
GPU Capacity and Infrastructure
To support the development of these AI models, the IndiaAI Compute pillar has onboarded a significant number of GPUs. The installed capacity is 17,374 GPUs, with a proposed capacity of 34,333 GPUs. This infrastructure is offered at subsidized rates to Indian startups and academia. The availability of these resources is crucial for training complex AI models that require substantial computational power.
Selected Firms and Their Missions
Several startups have already been selected to build indigenous foundational models under the IndiaAI Mission. These include:
Call for Proposals and Evaluation
The IndiaAI Innovation Initiative launched a call for proposals on January 30, 2025, inviting applications from institutions, startups, research organizations, and AI innovators across the country. A total of 506 proposals were received across three phases. Proposals are evaluated based on team capability, ethical compliance, and scalability.
AI Talent Development and Global Presence
The Indian government is also emphasizing AI talent development. Over 200 students have received fellowships under the FutureSkills pillar, with targets of 500 PhD scholars, 5,000 postgraduates, and 8,000 undergraduates. India is actively participating on the global AI stage, including chairing the Global Partnership on Artificial Intelligence (GPAI) and leading consensus during the G20. The country is set to host the AI Impact Summit in February 2026, further solidifying its commitment to shaping the future of AI collaboration.
