IndiaAI Mission Selects Fractal, Tech Mahindra and 6 Others to Develop Indigenous LLMs

Under the IndiaAI Mission, the Centre has chosen eight new organisations to create indigenous fundamental large language models (LLMs). At today’s AI Impact Summit 2026 kickoff event, IT minister Ashwini Vaishnaw announced the eight companies that have been chosen: Tech Mahindra, Fractal Analytics, Avataar AI, Zeinteiq Aitech Innovations, Genloop Intelligence, NeuroDX (Intellihealth), Shodh AI, and IIT Bombay’s BharatGen consortium.

With INR 988.6 Cr in funding from the Mission, IIT Bombay is reportedly developing a trillion-parameter model. Sarvam AI, Gnani.ai, and Gan AI were the three startups chosen in the initial phase of the IndiaAI Mission to develop AI models.

The first batch of models is “progressing well”, according to the IT minister, who also voiced optimism that India will have operational LLMs by the time of the AI Impact Summit in February of the next year. In the next ten days, the government also intends to publish an AI framework to direct the creation and application of models.

“India finally wants to play in the big leagues of AI. The government is throwing its weight behind IIT Bombay, Fractal, Tech Mahindra, and a few others to build indigenous LLMs. On paper, it’s bold. In practice, it’s an uphill climb. Now, with AI, we don’t have the luxury of missing the bus. AI isn’t just another industry. It’s the foundation of every future industry: health, defense, finance, education, governance. If India is only an “AI service center,” we’ll be permanently dependent, permanently behind,” opined Kapil Gupta, Founder, Solh Wellness.

IndiaAI Mission Also Scaling Computing Infrastructure

The IndiaAI Mission has been expanding its computing infrastructure in tandem with model development. Abhishek Singh, CEO of the IndiaAI Mission, recently stated that in order to promote research and innovation, the government is attempting to install 38,000 GPUs at reasonable prices throughout the nation.

Additionally, 600 data laboratories will be established nationwide as part of the initiative. With the assistance of cloud and data service providers like Yotta Data Services and NxtGen Cloud Technologies, India had already deployed over 17,300 GPUs as of June 2025.

IndiaAI Mission Also Offering Cost Effective Options

Nearly 3,850 additional GPUs, including NVIDIA H100 units and Google’s sixth-generation Trillium TPUs, have now been added through a third round of tenders. Additionally, the government has been lowering prices; compute power is now available for as little as INR 65 per hour.

The IndiaAI Mission, which was approved by the Union Cabinet in March 2024 and would cost INR 10,372 Cr over five years, aims to strengthen the nation’s AI ecosystem by providing universities, research institutes, and businesses with access to state-of-the-art computing capacity.

AI Governance Framework by 28 September

Additionally, according to Vaishnaw, by September 28, the Ministry of Electronics and IT (MeitY) will publish an AI governance framework that would describe checks and balances and safety restrictions to protect civilians from AI harm. He stated that the Ministry was collaborating with the Ministry of External Affairs to determine the list of invitees for the AI Impact Summit, including whether to invite nations like China that did not attend previous summits in the UK, South Korea, and France.

The Promotion and Regulation of Online Gaming Act, which outlaws all online money games, will go into effect on October 1st, the Minister further stated.