India is taking major steps towards developing its own Artificial Intelligence ecosystem, with the government planning to encourage the adoption of domestically developed AI models across critical sectors. The initiative could reduce the country's dependence on foreign technology companies and give Indian AI startups an opportunity to compete with global players such as OpenAI and Google.

According to government officials, the use of Indian Large Language Models (LLMs), Small Language Models (SLMs) and AI agents could be expanded across important government departments, particularly in sensitive sectors such as defence and aerospace. Some departments may also be directed to discontinue the use of advanced AI models and agents developed by foreign companies.

The primary objective is to ensure that sensitive government information remains secure while encouraging the development and adoption of AI technologies built in India.

Why Does India Want Its Own AI Models?

One of the biggest concerns surrounding the use of foreign AI platforms in government departments is data security. Sensitive information processed through external AI systems could create potential risks related to data privacy, cybersecurity and national security.

To address these concerns, the government wants critical departments to explore the use of secure, locally developed AI systems.

According to officials, departments such as Defence are already working on specialised AI systems that can operate without connecting to external networks. These systems will use air-gapped infrastructure, meaning they will remain isolated from public networks and the internet.

They will also support edge computing, allowing AI operations to take place directly on local devices or infrastructure without depending entirely on centralised cloud servers.

The government is now encouraging these departments to explore AI solutions being developed under the IndiaAI Mission.

IndiaAI Mission: 20 Homegrown AI Models in Development

The foundation for India's domestic AI ambitions was laid with the approval of the IndiaAI Mission in March 2024.

The government allocated a budget of ₹10,372 crore for this initiative, which aims to strengthen India's artificial intelligence ecosystem.

Under the mission, 20 AI models have been approved for development. These include Large Language Models (LLMs) designed for general-purpose applications and Small Language Models (SLMs) developed to address specific industry requirements.

Around 12 startups have been assigned the responsibility of developing these models.

Several Indian companies and startups have already started introducing their AI technologies. These include Sarvam and BharatGen, which have showcased their indigenous AI models.

Other developments include Soket's video-generation AI model Varya, its foundation model EKA-1, and ZenteiQ's Dhir 2B and Dhir 5B models.

Companies such as Gnani, Gan AI, Fractal, Tech Mahindra and Shodh AI are also participating in the development of India's domestic AI ecosystem. According to government officials, several of these companies are expected to introduce their LLMs and SLMs over the next 12 to 15 months.

Can Indian AI Models Compete With ChatGPT and Gemini?

Competing with established global AI platforms will not be easy. Companies such as OpenAI and Google have invested billions of dollars in developing advanced AI models, computing infrastructure and research capabilities.

However, Indian AI developers are working towards building models that can deliver competitive performance while addressing the country's specific requirements.

According to government officials, some domestically developed AI models are already achieving approximately 80% of the capabilities of the world's largest and most advanced AI models.

The focus is also on developing AI systems that understand Indian languages, local requirements and sector-specific applications.

This could give Indian AI companies an advantage in areas such as government services, education, agriculture, healthcare and public administration.

What Does the IndiaAI Mission Aim to Achieve?

The IndiaAI Mission is not limited to developing language models. It aims to establish a complete ecosystem that supports AI research, innovation and commercial applications.

Its key focus areas include:

1. Computing infrastructure: Expanding access to high-performance computing resources required to train and operate advanced AI models.

2. Indigenous AI models: Supporting Indian startups and companies developing homegrown LLMs and SLMs.

3. Data platforms: Improving access to datasets required for AI research and model training.

4. AI applications: Encouraging the development of practical AI-powered solutions across different industries.

5. Skill development: Training professionals and building an AI-ready workforce.

6. Startup support: Providing funding and opportunities to companies working on innovative AI technologies.

7. Secure AI systems: Promoting reliable AI infrastructure for sensitive government and national security applications.

The mission will be implemented through collaboration between government institutions, private companies, research organisations and startups.

What Could This Mean for India's AI Industry?

The government's push towards indigenous AI could create significant opportunities for Indian technology companies and startups. Greater adoption of domestic models by government departments could provide these companies with access to important projects, resources and real-world applications.

It could also encourage investment in AI research, computing infrastructure and specialised technology development.

However, replacing foreign AI platforms will require more than developing alternative models. Indian AI systems must demonstrate strong accuracy, reliability, cybersecurity and performance before they can be trusted with critical government operations.

India's ambition is not simply to create another alternative to ChatGPT or Gemini. It is to build an independent AI ecosystem that can serve the country's technological, economic and national security interests.

If successful, the IndiaAI Mission could become an important step towards making India a major global player in artificial intelligence.