Skip to main content

Government Pushes for Greater Use of Indigenous AI Models in Critical Sectors

Written by: Team Angel OneUpdated on: 10 Nov 2026, 7:19 pm IST
The government is looking to expand the use of indigenous AI models and systems across critical sectors, including defence and aerospace.
Government Pushes for Greater Use
Share

The central government is looking to increase the use of AI systems developed in India, particularly in government-owned and critical sectors such as defence and aerospace, according to senior government officials. 

The push covers indigenous large language models, smaller sector-focused models and AI-powered agents developed under the IndiaAI Mission. 

Focus on Critical Government Systems 

Critical government departments at the central and state levels are being asked to examine greater use of domestically developed AI systems. 

According to an official, some departments could be encouraged to avoid using frontier AI models and agents developed by non-Indian companies for certain critical applications. 

IndiaAI Mission Approves 20 Models 

Under the ₹10,372 crore IndiaAI Mission, the government has identified and approved the development of 20 AI models. 

These include general-purpose large language models and sector-focused small language models being developed by 12 startups selected under the mission. 

Indian Startups Develop AI Models 

The companies involved include Sarvam and BharatGen, which have already released several AI models. Other models released include Varya, EKA-1, and Dhir 2B and Dhir 5B. 

Gnani, Gan AI, Fractal, Tech Mahindra and Shodh AI are among other companies working on indigenous AI models, with more LLMs and SLMs expected over the next 12 to 15 months. 

Domestic Models Reach New Levels 

Government officials said some domestic models developed so far have achieved up to 80% of the capacity of leading frontier AI models. 

The government is also holding discussions with selected companies to examine whether the scope of their existing models can be expanded for use in crucial sectors. 

IndiaAI Mission 

The IndiaAI Mission was approved in March 2024 and covers areas including compute capacity, innovation, datasets, application development, FutureSkills, startup financing and safe and trusted AI. 

Read More: Ten Years After Demonetisation: Cash Remains Firmly in Use Despite Digital Payments! 

Conclusion 

The government's push towards indigenous AI places greater focus on developing and deploying Indian-built models in important sectors, with the IndiaAI Mission supporting a wider domestic AI ecosystem. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Nov 10, 2026, 1:49 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.
Know More
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy ₹0 Account Opening Charges

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store