India is advancing its AI capabilities with over 50 companies showing interest in developing foundation models, small language models (SLMs), and large language models (LLMs). The ₹10,372 crore INDIAai Mission aims to foster innovation through a robust framework, dual funding strategies, and GPU procurement. Startups, researchers, and students benefit from significant incentives, including discounts on GPUs. With a focus on feasibility, scalability, and responsibility, the initiative supports deep-tech startups and promotes indigenous AI solutions, positioning India as a global AI leader.
India is making significant strides in the field of artificial intelligence (AI) with over 50 companies expressing interest in developing AI foundation models, small language models (SLMs), and large language models (LLMs). According to sources, nearly a dozen of these companies are keen on building foundation models and LLMs, while others are focusing on sector-specific SLMs.
To guide this initiative, the government will release a comprehensive framework in the coming days. “A detailed framework outlining the requirements for developing the foundation model, SLMs, or LLMs will be released in a few days. Bidders will need to qualify on parameters such as feasibility, scalability, and practicality of their proposals,” a government official stated.
Union Minister for Information Technology Ashwini Vaishnaw had earlier announced that India aims to launch its sovereign foundation model within 8–10 months, or as early as July if companies proceed aggressively. For the past 18 months, the Ministry of Electronics and Information Technology (MeitY) has been collaborating with experts to establish a robust framework for India’s AI ecosystem.
To evaluate the proposals, the government has asked interested companies to submit proofs of concept (PoC) for their ideas. “We have asked all those interested to submit a PoC for the ideas of LLM, SLM, or foundation model that they wish to work on. A technical evaluation committee will shortly be formed to go through these submissions. We will then ask the shortlisted companies to start work on the prototype,” another official shared.
This initiative forms part of the ambitious ₹10,372 crore INDIAai Mission, approved by the Union Cabinet in March 2024. The government has introduced a dual funding strategy to support selected companies. The first approach involves direct funding from the central government, supplemented by state-level incentives. The second option offers equity-based funding, allowing private investors to participate.
In addition to foundation models, the government has received proposals from 10 companies to procure and supply 18,693 GPUs, including advanced models like H100, H200, MI325, and MI300X. Key players in this endeavor include Reliance Industries' Jio Platforms, Tata Communications, and Yotta Data Services, owned by the Hiranandani Group. These companies will supply GPUs to startups, researchers, academics, and other AI users across the country.
To further encourage AI innovation, the government is offering significant incentives. Startups, researchers, academic institutions, and students will benefit from a 40% discount on GPU access, with additional discounts available for users committing to long-term usage of six months or more. These incentives will be available for the next four years.
The INDIAai Mission is built on seven core pillars aimed at fostering a thriving AI ecosystem in India:
Developing a scalable AI ecosystem with services and resources.
Promoting AI innovation through government intervention.
Ensuring access to high-quality non-personal datasets for AI model training.
Encouraging the creation of indigenous AI solutions for critical sectors.
Reducing barriers to AI education and providing access to the latest AI tools.
Supporting deep-tech AI startups through incentives and mentoring.
Upholding responsible AI development with clear guidelines and safeguards.
This multidimensional approach underscores India's commitment to becoming a global leader in AI, fostering innovation while ensuring inclusivity and responsibility.
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