India’s Ministry of Electronics and Information Technology (MeitY) is moving swiftly under the ₹10,000 crore IndiaAI Mission, with Sarvam AI, Soket AI Labs, Gnani.ai, and Gan.ai reportedly selected as the first batch of startups to build Indian foundational AI models, according to a report by The Economic Times.
The initiative, aimed at accelerating the development of homegrown large language models (LLMs) and generative AI systems, is a key strategic response to global AI advancements, including China’s DeepSeek AI.
Focus on Indic Language Models and Multimodal Capabilities
Soket AI Labs has proposed the development of a 120-billion parameter open-source Indic LLM trained on 2 trillion tokens under its EKA Project, CEO Abhishek Upperwal confirmed to AIM. The project envisions multiple small models being rolled out within six months, with a full-scale model targeted within a year.
Meanwhile, Gnani.ai and Gan.ai have submitted proposals focused on building smaller AI language models. While official details remain pending, Gnani.ai’s leadership previously indicated work on speech-to-speech models for Indic languages, reinforcing the linguistic inclusivity focus of the IndiaAI Mission.
Sarvam AI, already underway, is developing a 70-billion parameter multimodal AI model supporting both Indian languages and English. Instead of direct monetary grants, Sarvam AI is expected to receive GPU compute resources valued at ₹200 crore to power its efforts.
Union Minister Ashwini Vaishnaw is expected to formally announce the selected firms shortly, marking a significant milestone for India’s indigenous AI development landscape.
Also read: Setu and Sarvam AI Collaborate to Launch BFSI-Tailored LLM
Building India’s Next Generation AI Infrastructure
The selection drive comes as MeitY ramps up efforts to accelerate indigenous AI capability building, following the heightened urgency after DeepSeek AI’s success in China.
Earlier, MeitY announced a ₹1,500 crore incentive fund for individuals and organisations building AI models from scratch. The ministry reportedly received 67 applications by February 15, followed by another 120 proposals in March, reflecting massive interest from the AI startup ecosystem.
Additionally, to support compute needs, MeitY has onboarded 10 GPU-as-a-service providers, including Jio, Yotta, CtrlS, Tata Communications, and NxtGen, to offer affordable GPU access, targeting costs below $1 per hour—one of the lowest globally.
The IndiaAI Mission represents a pivotal step toward achieving AI sovereignty, with an emphasis on language diversity, cost-effective infrastructure, and open innovation.
