Indigenous AI should be developed by Indian talent on Indian servers: PM Modi to startups

He also said that Indian startups need to focus on new domains that can secure the country’s economic and strategic interests. “Many domains are arising which will play a major role in India’s economic security and strategic autonomy. AI’s example is in front of us. The more a country is ahead in the AI race, the higher its advantage. Our startups have to do this job for India,” he said.

Speaking of the IndiaAI Mission, the PM said over 38,000 GPUs (graphics processing units) have been onboarded so far. “Our effort is that big technology is available to small startups. Indigenous AI should be developed by Indian talent on Indian servers,” he said.

“You are well aware what the state was 10 years ago, there was no scope for innovation in the country. We challenged that, launched Startup India, gave young people an open sky, and today the result is in front of us. In 10 years, the Startup India mission has become a revolution. India today is the world’s third largest ecosystem. 10 years ago, there were less than 500 startups, today there are more than 2 lakh… Today India has 125 active unicorns,” the PM said.

He also highlighted that in 2025, about 44,000 new startups were registered in the country, which was the highest for a single year in the 10 years of the Startup India scheme so far.

“I’m happy that Startup India gave birth to a new culture in India. Earlier, new businesses and ventures were brought about by kids of big families because they could easily get funding. The middle class and the poor saw only dreams of a job. But Startup India changed that thought,” he said.

PM Modi highlighted the role women have played in India’s startup journey. “Women have played a big role in this change. In over 45% recognised startups, there is at least one woman director or partner. India is the second biggest ecosystem of women-led startups. This inclusive momentum is increasing India’s ability further. The country is seeing its future in the startup revolution,” he said. He also said that young people from India’s rural parts, and smaller towns are also starting ventures. “In tier-2 and tier-3 cities, in fact even in villages, the youth are starting up. And they are the ones trying to solve ground problems,” he added.

He said that being a startup founder is a matter of courage and taking risks, and today, entrepreneurs are not merely accepted, but also respected in the country.

“If I ask why startups matter so much, maybe you all will have different answers. Some might say India is a young nation, that it is the fastest growing major economy, has world class infrastructure, where new sectors are coming up. All these answers are right. But the one fact that touches my heart the most is the startup spirit. Our youth is not ready to spend their life in their comfort zone… they want to create a new path for themselves, to reach new heights.

All of you have shown a lot of courage to reach here, putting so much at stake. Earlier risk taking was discouraged, but today, it has become mainstream. Those who think beyond monthly salary are not just accepted, but respected. Risky ideas which were earlier considered fringe, are becoming mainstream,” the PM said.

Modi said that in the last 10 years, the government has created an ecosystem in the country that encourages innovation. “We started Atal Tinkering Labs in schools, hackathons so that youth can solve the country’s problems, and incubated problems so ideas don’t die over lack of resources. Earlier, compliances, lengthy approval cycles and fear of inspector raj were hindrances, so we created an environment of trust and transparency,” said.

Outlining the Jan Vishwas Act, the PM said that over 180 provisions were decriminalised. “We helped you save time so you could focus on innovation, so that your time is not wasted in litigation. For startups, we allowed self certification in many laws, mergers and exits were made easier. Startup India is not just a scheme but a rainbow vision. It connects different sectors with new opportunities,” he said.

“Look at defence manufacturing. Earlier, could startups even think of competing with established players? Today under iDEX, in strategic sectors we opened new procurement ways for startups. The space sector, which was closed off to the private sector, has been opened up. Nearly 200 startups in the sector are getting global approval.

Similarly, the drone sector. For years, due to the lack of an enabling framework, India was left behind. We removed outdated rules, trusted innovators. Through the Government e-Marketplace (GeM), we have increased market access. Nearly 35,000 startups and small businesses are onboarded on GeM, and have received more than 5 lakh orders worth over Rs 50,000 crore,” the PM said.