AI Observatory
Initiative or IncentiveLandmarkOngoingNot legally binding
As of October 15, 2026

IndiaAI Mission (Rs 10,371.92 crore national AI programme)

The Union Cabinet's March 2024 five-year Rs 10,371.92 crore programme for compute, models, datasets, skills, startups and safe AI

India (Union) Ministry of Electronics and Information Technology (MeitY); implemented by the IndiaAI division of the Digital India Corporation March 7, 2024 6 min read
Contents
  1. Key elements
  2. Background
  3. Objectives and pillars
  4. Budget and institutions
  5. Implementation and progress
  6. Criticism
  7. Current status
  8. Timeline
  9. Sources

The IndiaAI Mission was approved by the Union Cabinet on 7 March 2024 with an outlay of Rs 10,371.92 crore over five years. Run by the IndiaAI division of the Digital India Corporation under the Ministry of Electronics and Information Technology, it rests on seven pillars: compute capacity, foundation models, datasets, application development, skills, startup financing and safe and trusted AI. By February 2026 the government reported more than 38,000 GPUs onboarded, 12 teams shortlisted to build sovereign models and a national datasets platform, but only about Rs 401 crore of the outlay had been released and critics questioned the compute-heavy allocation.

Ongoing. Five-year mission (2024-29); Rs 400.94 crore received by 9 Feb 2026

Legal effect: this initiative or incentive is not legally binding by itself. It may describe or request action; obligations arise only where a statute, rule or court order says so.

Key elements

  1. Approved on 7 March 2024 with a five-year outlay of Rs 10,371.92 crore, run through the IndiaAI division of the Digital India Corporation under MeitY.
  2. Built on seven pillars; compute takes 44% of the outlay and safe and trusted AI 0.2%, a split that critics have questioned.
  3. Created a common compute facility: more than 38,000 GPUs from 14 empanelled providers at subsidised rates, accessed through the IndiaAI Compute Portal.
  4. Funds sovereign foundation models: twelve organisations and consortia, with BharatGen's Rs 1,058.52 crore the largest allocation; Sarvam AI's was Rs 246.72 crore.
  5. Launched AIKosh, a national datasets and models platform, and the IndiaAI Safety Institute, a hub for AI-safety research and standards that does not regulate.
  6. Spending has lagged: of Rs 10,371.92 crore, about Rs 401 crore had been received by February 2026, after the 2024-25 allocation was revised down by 69%.
  7. The mission is a funding and infrastructure programme, not a regulatory regime; AI governance is covered separately by the November 2025 governance guidelines.

Background

The Union Cabinet approved the IndiaAI Mission on 7 March 2024 with a five-year outlay of Rs 10,371.92 crore.110 It followed NITI Aayog's 2018 national strategy, which proposed research centres, a shared compute platform and a data marketplace but carried no budget of its own (see the separate entry on that strategy).

The Mission is implemented by IndiaAI, an Independent Business Division of the Digital India Corporation (DIC), a body under MeitY.1012 The Rajya Sabha reply of 13 February 2026 describes its purpose as the development of "the overall AI ecosystem in the country".1 MeitY's governance guidelines describe the problem it is meant to address as the concentration of AI resources (compute, data and models) in a few global players, and say the Mission aims to counter this by democratising the benefits of AI.7

Objectives and pillars

The Mission has seven pillars and an overheads line. The allocations below are from the government's own reply to the Rajya Sabha; the shares are calculated by the author:13

PillarWhat it doesOutlay (Rs crore)Share
IndiaAI Compute CapacityCommon GPU cluster offered to startups, researchers and government at subsidised rates through empanelled providers4,563.3644.0%
IndiaAI Foundation Models (Innovation Centre)Funding for India-specific large, small and multimodal models1,971.3719.0%
IndiaAI Startup FinancingFunding support for deep-tech AI startups1,942.5018.7%
IndiaAI FutureSkillsAI courses at undergraduate to PhD level, data and AI labs, fellowships882.948.5%
IndiaAI Application Development InitiativeAI solutions for agriculture, healthcare, education, governance and other public uses689.056.6%
IndiaAI Datasets PlatformA national platform for non-personal datasets and models (AIKosh)199.551.9%
Safe and Trusted AIResponsible-AI tools, standards and the IndiaAI Safety Institute20.460.2%
Overheads and contingency (1%)Administration102.691.0%
Total10,371.92100%

The compute pillar was initially planned around 10,000 GPUs; planned capacity rose to 18,693 and then to more than 38,000 (see the entry on IndiaAI compute capacity).57 The datasets pillar is meant to make public-sector datasets AI-ready, and the safety pillar funds technical work on machine unlearning, bias mitigation, privacy-enhancing tools and explainable AI.37

Budget and institutions

Budget path. The 2024-25 Budget Estimate was Rs 551.75 crore, which was revised down to Rs 173 crore, a 69% cut. For 2025-26 the Budget Estimate was Rs 2,000 crore, revised to Rs 800 crore, and for 2026-27 it is Rs 1,000 crore.15 Parliamentary data show that the Mission had received Rs 21.79 crore of the 2024-25 revised estimate and Rs 379.15 crore of the 2025-26 revised estimate as on 9 February 2026, about 3.9% of the five-year outlay in total.14

MediaNama's analysis noted that the first-year cut might reflect aggressive bidding for GPUs, a phased rollout or reallocation (for example to the Rs 500 crore Centre of Excellence for AI in education announced in the 2025 Budget), though it said these explanations were unconfirmed.5

Institutions. MeitY is the nodal ministry, and IndiaAI, under the Digital India Corporation, has its own Chief Operating Officer.712 The Safe and Trusted AI pillar hosts the IndiaAI Safety Institute, which the governance guidelines recommend be resourced to provide technical expertise on AI safety.7 A drafting committee that MeitY constituted in July 2025, building on an advisory group under the Principal Scientific Adviser, produced the governance guidelines.7 In April 2026 MeitY set up an AI Governance and Economic Group, chaired by the Minister of Electronics and IT, to coordinate AI policy; it includes ministers and senior officials but not the sectoral regulators that the guidelines had proposed.9

Implementation and progress

Compute. Planned GPU capacity rose from 10,000 to 18,693 by early 2025.5 By 31 August 2025 more than 38,231 GPUs were available, and a secure cluster for 3,000 next-generation GPUs was being built for sovereign and strategic uses.7 By February 2026 the government reported more than 38,000 GPUs and 14 empanelled providers in Mumbai, Navi Mumbai, Hyderabad, Bengaluru, Noida and Jamnagar. Users of the IndiaAI Compute Portal included 114 academic researchers, 47 startups and MSMEs, 36 early-stage startups, 58 government entities, 32 students, 10 early-stage researchers and 8 IndiaAI Fellows.1 In October 2026 MeitY's C-DAC issued a fresh request for empanelment for up to 10,000 AI compute units.11

Foundation models. A call for proposals opened in February 2025. Sarvam AI was the first to be selected, in April 2025, and by March 2026 twelve organisations and consortia were funded, with support covering mainly compute costs. BharatGen, an IIT Bombay-led consortium, received Rs 1,058.52 crore and Sarvam AI Rs 246.72 crore. Models from Sarvam, BharatGen and Gnani were launched at the India AI Impact Summit in February 2026.2

Datasets, applications and skills. AIKosh, the national datasets platform, and the IndiaAI Compute Portal were launched on 6 March 2025 along with an AI competency framework for public officials and an AI start-up acceleration programme with Station F and HEC Paris.6 By August 2025 the datasets platform had onboarded about 1,500 datasets and 217 models; 30 sectoral applications had reached the prototyping stage; and the skilling programmes supported more than 500 PhD fellows, 8,000 undergraduates and 5,000 postgraduates.7 In February 2026 the government reported 27 India Data and AI Labs set up and 543 more identified.1

Safety. Under the Safe and Trusted AI pillar the Mission has supported technical work on machine unlearning, bias mitigation, privacy-enhancing tools and explainable AI, and has established the IndiaAI Safety Institute (see the separate entry).7

Criticism

Compute-heavy design. At a MediaNama roundtable on 11 December 2024, participants asked whether a 44% compute share was justified, one arguing that datasets create lasting assets while compute loses value after use, and another calling 44% "probably the bare minimum" given growing inference demand. A participant from the Takshashila Institution said how funds are spent matters as much as the total and criticised tender-based allocation.8

Slow releases. Only about Rs 401 crore of the Rs 10,371.92 crore outlay had been received by February 2026, after the 2024-25 and 2025-26 revised estimates were cut. MediaNama reported that this raised doubts about the Mission's ability to operate at scale.4

Scale against private investment. MediaNama noted that private commitments from Amazon and Microsoft of more than USD 50 billion far exceed public spending under the Mission, which could shape who controls compute capacity and innovation pipelines.4

Safety funding and opacity. The safe and trusted AI pillar's Rs 20.46 crore is about five times smaller than the Mission's overheads line. MediaNama also noted that the December 2024 breakdown did not explain how dataset quality, curation or anonymisation would be ensured, nor whether startup financing would be grants, equity or loans.34 The reply that lists users of the compute portal gives counts of users, not utilisation rates, and MediaNama noted that access counts are not the same as usage.14

Current status

As of 15 October 2026 the Mission is ongoing. The last parliamentary data in the sources reviewed (9 February 2026) show Rs 400.94 crore received against a Rs 1,000 crore Budget Estimate for 2026-27 that had not yet drawn funds. The government has not announced a second phase or a change to the Rs 10,371.92 crore outlay in the sources reviewed.14

Recent developments include the April 2026 AI Governance and Economic Group, the first launches from the foundation-model programme, and MeitY's October 2026 call for further GPU providers.9211 The Mission was approved for five years from 2024.

Timeline

  1. Mar 7, 2024

    Cabinet approval

    The Union Cabinet approves the IndiaAI Mission with an outlay of Rs 10,371.92 crore over five years.

  2. Aug 2024

    Compute empanelment call

    The Mission issues a request for empanelment of AI compute and cloud service providers.

  3. Oct 7, 2024

    Safety Institute consultation

    MeitY consults industry, academia and civil society on an AI Safety Institute under the Safe and Trusted AI pillar.

  4. Dec 5, 2024

    Pillar-wise breakdown disclosed

    In a Lok Sabha reply MeitY gives the allocation for each pillar, with compute at Rs 4,563.36 crore.

  5. Jan 30, 2025

    GPU capacity and Safety Institute announced

    The government announces 18,693 GPUs of compute capacity and the IndiaAI Safety Institute.

  6. Feb 3, 2025

    First-year allocation cut

    The 2024-25 allocation is revised down from Rs 551.75 crore to Rs 173 crore.

  7. Mar 6, 2025

    Compute Portal and AIKosh launched

    Minister Ashwini Vaishnaw launches the IndiaAI Compute Portal, the AIKosh datasets platform and other initiatives on the Mission anniversary.

  8. Apr 2025

    First sovereign model selected

    Sarvam AI is the first company selected to build a sovereign foundation model under the Mission.

  9. Aug 31, 2025

    38,000 GPUs

    The governance guidelines report more than 38,231 GPUs available and AIKosh holding 1,500 datasets and 217 models.

  10. Feb 13, 2026

    Progress reply to Parliament

    The Rajya Sabha is told of 14 empanelled providers, 12 funded model teams, 30 applications and funds released of Rs 21.79 crore and Rs 379.15 crore.

  11. Feb 16, 2026

    India AI Impact Summit

    Sarvam, BharatGen and Gnani launch sovereign models at the summit in New Delhi.

  12. Apr 13, 2026

    AIGEG constituted

    MeitY forms the AI Governance and Economic Group to coordinate AI policy.

  13. Oct 7, 2026

    New compute call

    C-DAC invites AI service providers to be empanelled for up to 10,000 AI compute units.

Sources

  1. [1]
    Rajya Sabha Unstarred Question No. 1668: Progress of IndiaAI Mission (answered 13 February 2026)
    PrimaryMinistry of Electronics and Information Technology, via MediaNamaFebruary 13, 2026medianama.com
  2. [2]
    Lok Sabha Unstarred Question No. 5417: Small Language Models, with Annexure I (answered 25 March 2026)
    PrimaryMinistry of Electronics and Information Technology, via MediaNamaMarch 25, 2026medianama.com
  3. [3]
  4. [4]
  5. [5]
    IndiaAI Mission Allocation Reduced by 69% in Revised 2024-25 Estimates
    SecondaryMediaNamaFebruary 3, 2025medianama.com
  6. [6]
    MeitY Launches New AI-Driven Initiatives Under IndiaAI Mission
    SecondaryMediaNamaMarch 7, 2025medianama.com
  7. [7]
    India AI Governance Guidelines: Enabling Safe and Trusted AI Innovation
    PrimaryMinistry of Electronics and Information Technology, via PIBNovember 2025static.pib.gov.in
  8. [8]
  9. [9]
  10. [10]
    Cabinet approves IndiaAI Mission (press release, 7 March 2024)
    PrimaryPress Information BureauMarch 7, 2024pib.gov.in
  11. [11]
  12. [12]
    INDIAai
    SecondaryWikipediaen.wikipedia.org
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Cite this entry

Pacta AI Observatory, “IndiaAI Mission (Rs 10,371.92 crore national AI programme),” last updated October 15, 2026, https://aiobservatory.pacta.in/wiki/indiaai-mission.

Facts verified October 15, 2026 · Last edited Oct 15, 2026 · 12:36 Not legal advice. Check the primary sources before relying on this summary.