If you’re building an AI startup in India, there’s real public support — but most of it isn’t the simple “apply and get a cheque” people imagine. Here’s a cited map of what actually exists. (dgm implements osFoundry, a separate company’s platform — dgm is an independent integration partner, not osFoundry, and not a startup-grant consultancy. General information, not professional or grant advice.)
The main routes
| Route | What it really is | Best for |
|---|---|---|
| IndiaAI Mission | Subsidised compute, AIKosh datasets, Innovation Challenge (₹25L PoC → ₹1cr deployment), startup-financing pillar | Startups building/training models |
| Startup India / DPIIT | Tax holiday (80-IAC), angel-tax exemption, IPR rebates — not cash | Recognised innovative startups |
| Fund of Funds 2.0 / RDI Scheme | Capital channelled via SEBI-registered AIFs — indirect | Startups raising VC |
| GENESIS / iCreate | Seed support + incubation, Tier-II/III focus | Early-stage founders |
Why “grant” is the wrong mental model
Most of these are not a grant you apply for and receive:
- Fund of Funds invests in AIFs, which then invest in startups — you must convince a fund manager.
- GENESIS / iCreate provide seed support and mentorship, often modest and incubator-mediated.
- IndiaAI compute is a subsidy on GPU rental, not free cash — but genuinely useful if you train models.
- The Innovation Challenge funds selected solutions to government problem statements — competitive.
- DPIIT recognition unlocks tax and IPR benefits, not money in the bank.
The most directly accessible benefit for a model-building startup is usually subsidised IndiaAI compute, alongside DPIIT recognition for tax/IPR relief.
Eligibility reality
Most routes require DPIIT recognition and genuine innovation — Pvt Ltd/LLP, within age and turnover limits, not formed by restructuring (details in DPIIT recognition and who qualifies). An established business simply adopting AI typically does not qualify as a funded startup.
Where dgm fits (and doesn’t)
dgm doesn’t apply for or administer any of these schemes — we’re an integration partner, not a grant consultancy. Where we help is after you’re building or adopting AI and need it integrated well: osFoundry is a model-neutral, self-hostable platform we implement for a transparent $399 assessment and $3,999/month (INR approximate; 18% GST domestic). For funding itself, work with the official portals, incubators, or a specialist advisor.
General information, not professional or grant advice. Schemes and eligibility change — verify on indiaai.gov.in, startupindia.gov.in and related portals.