The IndiaAI Mission has taken a significant leap forward with the announcement of eight new firms selected for Phase 2, marking a pivotal moment in India’s journey toward establishing a robust artificial intelligence ecosystem. This announcement was made during the AI Impact Summit 2026 held on September 18 in New Delhi, organized by the Ministry of Electronics & Information Technology (MeitY). The inclusion of BharatGen, Tech Mahindra, and Fractal among the newly selected companies underscores the government’s commitment to fostering innovation and building a sovereign AI framework that can compete on a global scale.
The eight firms selected in this phase are BharatGen, Tech Mahindra, Fractal, Avataar.ai, ZenteiQ.ai, Genloop, NeuroDX (IntelliHealth), and Shodh AI. These companies join the ranks of four previously selected firms—Soket AI Labs, gnani.ai, Gan.AI, and Sarvam—bringing the total number of participants in the foundation model initiative to twelve. This initiative aims to develop foundational AI models that can serve various applications across sectors, from healthcare to education and beyond.
BharatGen, a standout player in this selection, is backed by the Department of Science and Technology and is focused on creating sovereign AI models with parameters ranging from 2 billion to an ambitious 2 trillion. Their first large language model (LLM), Param-1, launched in May 2025, is a testament to their capabilities. This bilingual model, featuring 2.9 billion parameters, incorporates 25% Indic data, a significant enhancement compared to global counterparts like Meta’s Llama, which only includes 0.01% Indic data. This focus on local languages and contexts is crucial for ensuring that AI technologies are accessible and relevant to the diverse population of India.
The BharatGen consortium is led by Professor Ganesh Ramakrishnan from IIT Bombay and includes prestigious institutions such as IIT Kanpur, IIT Mandi, IIT Madras, IIT Hyderabad, IIIT Hyderabad, and IIM Indore. This collaboration brings together some of the brightest minds in the country, pooling expertise from various fields to tackle the challenges of AI development. In addition to their foundational model, BharatGen has also released 20 speech models across 19 Indian languages on their platform, AIKosha, targeting voice-first interfaces. This initiative is particularly important in a country where linguistic diversity is vast, and the ability to interact with technology in one’s native language can significantly enhance user experience and accessibility.
The selection of Tech Mahindra and Fractal further enriches the landscape of the IndiaAI Mission. Tech Mahindra, a major player in the IT services sector, has been actively involved in leveraging AI for business solutions across industries. Their participation in the IndiaAI Mission aligns with their vision of integrating advanced technologies into everyday business processes, thereby driving efficiency and innovation. Fractal, known for its expertise in AI and analytics, brings a wealth of experience in applying AI to solve complex business problems. Their involvement in the mission is expected to accelerate the development of AI solutions that can be deployed at scale, benefiting various sectors including finance, healthcare, and retail.
The other firms selected—Avataar.ai, ZenteiQ.ai, Genloop, NeuroDX (IntelliHealth), and Shodh AI—also bring unique strengths to the table. Avataar.ai specializes in augmented reality and AI, focusing on creating immersive experiences that can transform how consumers interact with products and services. ZenteiQ.ai is dedicated to harnessing AI for enhancing decision-making processes in businesses, while Genloop focuses on sustainable AI solutions. NeuroDX (IntelliHealth) is making strides in healthcare AI, aiming to improve diagnostics and patient care through intelligent systems. Shodh AI, on the other hand, is working on AI-driven research tools that can facilitate knowledge discovery and information retrieval.
The IndiaAI Mission is not just about selecting companies; it represents a broader strategy to enhance India’s computational capabilities and model-building capacity. As part of this initiative, the government has ramped up its GPU capacity, which has now reached 34,000 GPUs, with plans to expand this to 40,000 soon. This increase in computational power is essential for training sophisticated AI models, enabling researchers and developers to experiment with larger datasets and more complex algorithms. The collaboration between public and private sectors in this endeavor is crucial, as it fosters an environment where innovation can thrive.
Union IT Minister Ashwini Vaishnaw has emphasized the ambitious goals set for each selected team, urging them to aim for a position among the top five global players in their respective domains. This directive highlights the competitive nature of the AI landscape and the urgency for Indian firms to innovate rapidly. Whether in multilingual foundation models, speech AI, or multimodal applications, the expectation is clear: these companies must leverage their expertise and resources to create impactful solutions that resonate not only within India but also on the international stage.
As the IndiaAI Mission progresses, it is essential to recognize the potential societal impacts of these developments. AI has the power to transform industries, improve efficiencies, and enhance quality of life. However, it also raises ethical considerations regarding data privacy, bias, and job displacement. The mission’s focus on building indigenous AI models is a step towards addressing these concerns, as it allows for greater control over data and algorithms, ensuring they are tailored to the needs and values of the Indian populace.
Moreover, the emphasis on multilingual capabilities reflects a growing recognition of the importance of inclusivity in technology. By developing AI systems that understand and process multiple languages, the IndiaAI Mission aims to bridge the digital divide and empower individuals from diverse linguistic backgrounds. This approach not only enhances accessibility but also fosters a sense of ownership among users, as they can engage with technology in their preferred language.
In conclusion, the selection of BharatGen, Tech Mahindra, Fractal, and other innovative firms for Phase 2 of the IndiaAI Mission marks a significant milestone in India’s quest to establish itself as a leader in the global AI landscape. With a strong focus on building foundational models, enhancing computational capabilities, and promoting inclusivity, the mission is poised to drive transformative change across various sectors. As these companies embark on their journey, the eyes of the world will be watching, eager to see how India leverages its talent and resources to shape the future of artificial intelligence. The road ahead is filled with challenges, but with collaboration, innovation, and a commitment to ethical practices, India can emerge as a formidable player in the AI arena.