Govt picks 8 more startups to build indigenous LLMs, sectoral SLMs

Eight more startups, including Fractal Analytics and BharatGen, will build LLMs and SLMs under the IndiaAI Mission as the govt also plans 500 AI data labs and an AI governance framework

union electronics and information technology minister ashwini vaishnaw said the government was also planning to share the gpu compute capacity with some countries of the global south
Union electronics and information technology minister Ashwini Vaishnaw said the government was also planning to share the gpu compute capacity with some countries of the global south. | File Image
Aashish Aryan New Delhi
4 min read Last Updated : Sep 18 2025 | 7:39 PM IST

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The government has selected eight more startups to build indigenous Large Language Models (LLMs) and sector-focused Small Language Models (SLMs), including Fractal Analytics, Avatar AI, Tech Mahindra, Zeinteiq Aitech Innovation, and the Indian Institute of Technology Bombay consortium’s BharatGen, among others.
 
“Our selection of partners for developing models is also changing… that’s adapting to the latest thought in the technical world that models focused on solving the problems of a particular sector will be more effective, have more utility and be more in demand,” Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
 
Although the requirement for large omnibus models will continue, the focus on SLMs—which can be applied in areas such as education, healthcare, agriculture, materials science, manufacturing and law—will be preferred, Vaishnaw added.
 
In the first round, four startups—Sarvam, Soket AI, Gan AI and Gnani AI—were selected to develop indigenous LLMs. In the second round, Genloop Intelligence, NeuroDX and Shodh AI were chosen to work on both LLMs and SLMs.
 
The government is also planning to share the graphics processing unit (GPU) compute capacity created so far under the IndiaAI Mission with some countries of the Global South, the minister said. More than 38,000 GPUs have been onboarded under the flagship mission to augment India’s supercomputing capacity.
 
The fourth edition of the AI Impact Summit, previously held in the United Kingdom, South Korea and France, will take place in New Delhi on February 19–20, Vaishnaw said, adding that the focus will be on human-centric and inclusive growth of the technology by making AI accessible to all.
 
“As we interact with global leaders, one thing that is coming out in all dimensions is that the world has to come together for a common governance framework on AI. It is too important a technology, and the impact is so profound that we must all come together and look at a common governance framework,” Vaishnaw said.
 
The government will also establish more than 500 AI data labs across the country, particularly in tier-II and tier-III towns and cities, to support skill development in advanced technologies such as AI and machine learning. About Rs 500 crore is likely to be spent on the project.
 
In the coming days, the government will also release an AI governance framework, which will serve as a guiding principle for companies developing products and services using the technology, Vaishnaw added.
 
Govt to release rules under Digital Personal Data Protection Act by Sept 28. 
 
The government will release the administrative rules under the Digital Personal Data Protection Act before September 28, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
 
The rules are crucial for the operationalisation of the DPDP Act, which was passed by both houses of Parliament in August 2023 and received Presidential Assent shortly after. The government has conducted extensive consultations on the draft rules, released in January this year.
 
A set of frequently asked questions clarifying several aspects and provisions is also likely to be released along with the main administrative rules, Vaishnaw added.
 
Govt to enforce Online Gaming Act, 2025 with rules from October 1
 
The government will operationalise the Promotion and Regulation of Online Gaming Act, 2025, from October 1, when the administrative rules will be promulgated, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
 
The IT ministry has conducted extensive consultations on the rules over the last several years, both before and after the passage of the law. Once the law and rules are promulgated, the government will again consult with the gaming industry and provide more time if required, Vaishnaw said.
 
“We also engaged with the banks. We engaged with practically every stakeholder possible in this, and we have finalised the rules,” he added. 

Rules under DPDP to roll out before Sep 28 

The government will release the administrative rules under the Digital Personal Data Protection (DPDP) Act before September
28, Union Electronics and Information Technology Minister Ashwini Vaishnaw said. A set of frequently asked questions, which
clarify several aspects and provisions, may also be released along with the main administrative rules, he said.
Online Gaming Act to be effective from Oct 1
 
The government will operationalise the Promotion and Regulation of Online Gaming Act, 2025, from October 1, when the administrative rules will be promulgated, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
  The IT ministry has conducted consultations on the rules over the last several years, both before and after passing the law, Vaishnaw said.

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