Indian Government allocates over Rs. 2,000 crores exclusively for funding AI startups in India
The Government of India has dedicated a substantial amount towards nurturing Artificial Intelligence focused startups in the country. As per Meity Startup Hub CEO Jitendra Vijay, more than Rs. 2,000 crores has been set aside specifically to fund and support early-stage AI companies.
Speaking on the sidelines of the recent Startup Mahakumbh event, Vijay shared that the funds will be deployed as part of the overall India AI Mission which has a total outlay of Rs. 10,372 crores over the next five years. The mission aims to catalyze development in the AI sector and build an AI-ready talent pool.
Vijay informed that the AI startup funding scheme will be operationalized within the upcoming financial year beginning April 2024. Details regarding the mechanism of deploying the capital are being worked out currently.
In addition to directly assisting AI ventures, the government is also implementing complementary programs through schemes like the Design Linked Incentive (DLI) for semiconductor design. This indicates the leadership’s focus on prioritizing the sector through a multifold approach encompassing both funding and industrial incentives.
Meity Startup Hub is dedicated to strengthening the startup architecture across India. It presently supports over 143 incubators and centers of excellence across the nation. Startups from conceptualization to scale are empowered through a chain of funds aimed at each growth stage. The organisation aims to ensure balanced regional growth of entrepreneurship by backing ventures situated anywhere in the country.
While private investment continues to be important, the government wants to sustain a conducive environment for innovative startups to thrive without distorting market forces. Support for AI especially will play a role in self-reliance and global prominence in an area poised for exponential advancement. India’s young workforce seems well-equipped to make the most of such opportunities.