India has selected Sarvam AI, a local startup in generative artificial intelligence (AI), to create the nation’s first domestically developed foundational AI model, a significant leap in its pursuit of AI leadership.
Announcing the development alongside the launch of the Electronics Component Manufacturing Scheme (ECMS),
Information Technology Minister Ashwini Vaishnaw revealed that Sarvam AI was chosen from a pool of 67 applicants. It is the first startup to be officially selected for this initiative, with a few more expected to be included shortly.
The ECMS initiative, described by Vaishnaw as a ‘horizontal scheme,’ aims to bolster electronics manufacturing and other key industries such as automotive, power, and industrial technology. The minister highlighted that a robust electronics manufacturing infrastructure is steadily taking shape across the country, laying the groundwork for long-term growth.
He also underscored the scheme’s emphasis on enhancing design innovation and upholding high-quality standards—two pillars he believes will position India as a global leader in electronics. Vaishnaw informed that the ECMS already has a strong lineup of projects awaiting approval, signaling what he called the beginning of India’s emergence as a major force in the global electronics and AI space.
In December 2023, Sarvam AI raised $41 million in its Series A funding round, led by Lightspeed and supported by Peak XV Partners and Khosla Ventures. The company claimed this was “the largest raise at this stage for an Indian AI startup.”
Sarvam AI said it intends to build a comprehensive ecosystem for generative AI, covering everything from foundational research in training customized AI models to developing a robust platform for enterprise-level creation and deployment. The company believes that offering an end-to-end solution can help accelerate the widespread use of GenAI in India, especially as many businesses recognize its promise but struggle to integrate it effectively into their operations.
Sarvam AI’s mission focuses on addressing India’s distinct requirements. This includes developing AI models that cater to the country’s linguistic diversity and optimizing for voice-based user experiences. In collaboration with Indian enterprises, the company said it plans to co-develop AI solutions tailored to specific industries using their proprietary data. Ultimately, Sarvam AI aims to drive large-scale societal benefits by integrating GenAI with the India Stack, enabling impactful public service applications.
Other partnerships
In March, the Unique Identification Authority of India (UIDAI) partnered with Sarvam AI to enhance the user experience for individuals accessing Aadhaar-related services. UIDAI, a statutory body under the Government of India, is responsible for issuing Aadhaar, a 12-digit unique identification number assigned to residents of India.
According to a statement from the Ministry of Electronics & IT, the collaboration officially began on March 18, 2025. Under this agreement, Sarvam AI will implement an AI-driven voice interaction system to support Aadhaar users. This system will enable residents to provide near real-time feedback during the enrollment and update processes, helping identify issues such as excessive charges, if any. Additionally, the AI will be capable of issuing instant alerts to users if any suspicious activity is detected during Aadhaar authentication.
Recognizing India’s linguistic diversity, the AI system will support voice interactions and fraud detection in ten languages, including Hindi, English, Telugu, Tamil, Marathi, Gujarati, Kannada, Odia, Punjabi, and Malayalam. More languages are expected to be added over time.
“We are privileged to collaborate with UIDAI. This engagement exemplifies the immense potential of AI to drive public good,” said Vivek Raghavan, Co-Founder of Sarvam AI.
To ensure the highest levels of data security, Sarvam AI has developed a customized generative AI stack hosted entirely within UIDAI’s air-gapped, on-premise infrastructure. This setup guarantees that no data leaves UIDAI’s secure environment, strictly adhering to data privacy and sovereignty standards. The agreement is initially set for one year, with the option for a one-year extension, the statement added.
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