AI & GenAI
IndiaAI Mission, ₹10,371.92 cr (Mar 2024). 38,000+ GPUs on the compute portal at about ₹65/hour (PIB, Feb 2026); 12 foundation-model builders selected.
Bottleneck GPU access, data residency, model and prompt security.
GPU servers →India has 4,200+ deeptech startups. They need compute, protection and paperwork that keep pace with the science.
A sector guide with sourced numbers, the missions and funds that apply, and the XcellHost stack behind it: GPU servers hosted in India, AI and RAG platforms, HSM-backed IP protection and DPDP-ready data controls.
Deeptech startups build on new science or engineering rather than a new business model. In India they are growing faster than tech startups overall, AI dominates the count, and since February 2026 DPIIT recognises them as a separate category with a longer runway.
deeptech startups, 550+ of them founded in 2025
NASSCOM–Zinnov Tech Start-up Report, 25 Feb 2026raised by deeptech startups in 2025, up 37% on 2024
NASSCOM–Zinnov, 25 Feb 2026of deeptech startups are AI-led; they took 91% of deeptech funding
NASSCOM–Zinnov, 25 Feb 2026raised by all Indian tech startups in 2025 (+23%); deeptech is about a quarter
NASSCOM–Zinnov, 25 Feb 2026The notification replaced the February 2019 startup definition. Apply through the Startup India portal; check the current text before you file.
AI startups now carry the funding. Hardware-heavy segments rely more on public missions, grants and patient funds — which is why the scheme finder below matters.
A schematic of where national deeptech capacity is being built: approved chip units, quantum hubs, the launch site and the main startup clusters. Positions are approximate and not to scale.
Approved semiconductor projects total about ₹1.64 lakh crore across six states (PIB, 5 May 2026). Two have begun commercial shipments. National Quantum Mission hubs sit at IISc, IIT Madras, IIT Bombay and IIT Delhi.
The national programme behind each segment, a fact you can check, and the infrastructure problem companies in it usually hit first.
IndiaAI Mission, ₹10,371.92 cr (Mar 2024). 38,000+ GPUs on the compute portal at about ₹65/hour (PIB, Feb 2026); 12 foundation-model builders selected.
Bottleneck GPU access, data residency, model and prompt security.
GPU servers →12 units approved under ISM, ~₹1.64 lakh cr (May 2026). Semicon 2.0 approved 15 Jul 2026 with ₹1,27,500 cr across design, materials, fabs, OSAT, R&D and talent.
Bottleneck EDA licence servers, layout IP security, export controls.
Cloud HSM →National Quantum Mission, ₹6,003.65 cr, 2023-24 to 2030-31. Four thematic hubs; over half of targeted outcomes met in three years (minister, Jun 2026).
Bottleneck HPC for simulation; preparing classical crypto for quantum attacks.
PQC readiness →IN-SPACe authorises private missions: 133 authorisations, 4,500+ registered organisations (Jun 2026). Vikram-1 reached orbit on 18 Jul 2026. ₹1,000 cr space VC fund, FY26–FY30.
Bottleneck ground-segment data pipelines, imagery storage, mission software signing.
Edge cloud →Drone Rules, 2021 and a ₹120 cr PLI scheme for drones and components (Sep 2021); approvals and flight permissions run through Digital Sky.
Bottleneck edge inference, signed firmware, telemetry at scale.
Code signing →BioE3 policy approved Aug 2024 across six themes. 17 biofoundry and biomanufacturing facilities funded and 15 Bio-AI hubs recommended (Parliament reply, Jul 2026).
Bottleneck genomic and health data protection, compute for bio-AI.
DSPM →PLI for advanced chemistry cells, ₹18,100 cr for 50 GWh; PM E-DRIVE, ₹10,900 cr (2024), extended to March 2028.
Bottleneck battery and grid digital twins, IoT data, plant OT security.
Digital twin →Covered by the RDI Fund's sunrise-sector focus and ANRF research grants; Semicon 2.0 adds materials, chemicals and gases as a pillar.
Bottleneck simulation HPC, lab data management, research IP trails.
Vector DB →Since 2018: 676 startups and innovators, 566 challenges, 548 contracts; 58 prototypes worth ₹3,853 cr cleared for procurement (MoD, Mar 2026). ADITI for critical tech.
Bottleneck isolated environments, need-to-know access, export controls.
On-prem HSM →Status as checked on official sources in November 2026. Amounts are scheme outlays, not grants to any one company.
Approved by Cabinet on 1 July 2025, launched on 3 November 2025. Long-term, low- or nil-interest money flows through a Special Purpose Fund under ANRF to second-level fund managers, then to companies at TRL 4 and above. On 8 October 2026 the first 19 fund managers (14 AIFs, 5 Focused Research Organisations) were approved, with ₹7,131 cr committed. Budget 2026-27 provided ₹20,000 cr.
dst.gov.in ↗Approved 14 February 2026. Invests through SEBI-registered AIFs, with priority for deep tech and tech-driven manufacturing, early-growth founders and smaller domestic funds. FFS 1.0 committed its full ₹10,000 cr to 145 AIFs, which invested ₹25,500 cr+ in 1,370+ startups.
startupindia.gov.in ↗Approved October 2024 under IN-SPACe; deploys over FY 2025-26 to FY 2029-30 at roughly ₹100–250 cr a year.
inspace.gov.in ↗Funds research across universities and labs and houses the RDI Fund's Special Purpose Fund. The path for lab-stage (TRL 1–3) work with academic partners.
anrfonline.in ↗Approved March 2024 for five years. Compute portal with 38,000+ GPUs and 1,050 TPUs at about ₹65/GPU-hour on average; AIKosh with 7,541 datasets and 273 models (PIB, 10 Feb 2026).
indiaai.gov.in ↗ISM 1.0 (Dec 2021) approved 12 units worth ~₹1.64 lakh cr, supported 24 design projects and gave 105 startups and MSMEs EDA access. Semicon 2.0 was approved on 15 July 2026.
ism.gov.in ↗Approved 19 April 2023, runs to 2030-31. Targets 50–1,000 physical qubits in eight years and 2,000 km satellite-based secure communication; four T-Hubs at IISc, IIT Madras, IIT Bombay and IIT Delhi.
dst.gov.in ↗BioE3 (Aug 2024) for biomanufacturing; iDEX and ADITI for defence innovation; Drone Rules 2021 and drone PLI; ACC battery PLI and PM E-DRIVE for e-mobility.
birac.nic.in ↗The February 2026 notification raised the general turnover ceiling to ₹200 cr and created a deep tech startup category: up to 20 years from incorporation and ₹300 cr turnover. Co-operative societies are now eligible too.
startupindia.gov.in ↗Eligible recognised startups can deduct 100% of profits for three consecutive years out of their first ten, after Inter-Ministerial Board certification. Budget 2025 extended eligibility to companies incorporated before 1 April 2030. From 1 April 2026 the benefit sits in section 140 of the Income-tax Act, 2025 — confirm with your CA.
incometaxindia.gov.in ↗Recognised startups pay the reduced patent fee schedule, can request expedited examination, and can use government-paid facilitators under the startup IP protection scheme.
ipindia.gov.in ↗A draft was released for consultation by the Office of the Principal Scientific Adviser on 31 July 2023. We found no final notified policy as of November 2026; the DPIIT deep tech category above is in force.
psa.gov.in ↗DPDP Rules notified 13 November 2025; core duties apply from 13 May 2027. CERT-In directions (2022): report incidents within 6 hours, keep logs for 180 days in India.
DPDP platform →The policy milestones deeptech founders keep running into. Drag or scroll sideways.
Recognition, tax and IP benefits begin
Defence innovation challenges
Private space activity authorised
Followed by drone PLI, Sep 2021
Fabs, OSAT, design incentives
₹6,003.65 cr to 2030-31
PSA consultation draft
National research foundation
₹10,371.92 cr · compute portal
Biomanufacturing & Bio-AI hubs
₹1,000 cr under IN-SPACe
80-IAC window to 1 Apr 2030
₹1 lakh cr approved, then launched
Core duties from 13 May 2027
20 yrs · ₹300 cr · FoF 2.0 approved
₹1,27,500 cr · first private orbit
19 approved · ₹7,131 cr
Filters 16 central schemes and rules. Every card links to the official portal. Eligibility changes; read the current guidelines before you apply.
Seven needs we see again and again, and the XcellHost service that answers each.
Training runs, simulation and inference that outgrow a cloud credit. Plan GPU-hours before you raise, then reserve the right shape.
GPU servers · on quote →Health, genomic, defence and government data that must stay in India — and customers who ask where every copy lives.
India-hosted cloud →Model weights, chip layouts and process recipes encrypted with keys you control in an HSM, never in an app config.
Cloud HSM →Dual-use items fall under India's SCOMET list, and imported chips and EDA tools can carry foreign rules. Access logs and region locks make classification defensible.
Know where data is →Licence servers, CAD and simulation workstations that need steady hosts, static IPs and tight access — not a laptop under a desk.
Dedicated servers →Academic partners, contract fabs and investors who need some files and none of the rest. Label, restrict and watch what leaves.
Purview DLP →Utilisation certificates, milestone evidence and audit trails for public money — plus DPDP and CERT-In duties that apply to every company.
DPDP platform →A starting point, not a quotation: the XcellHost pages to read first for your segment, stage and concerns.
Estimate compute from model size and tokens using the standard 6 × parameters × tokens rule for training. Illustrative: real runs vary with code, parallelism and data. No prices here — GPU servers are quoted per configuration.
Peak dense BF16 throughput per GPU from vendor specifications as used on our GPU comparison pages; memory rule of thumb ~18 bytes/parameter for full training with Adam, ~2.4 for LoRA, ~2.4 for inference with KV cache headroom. Not a performance guarantee.
Every tile links to the service page with its own plans and prices.
Two ways in for early-stage deeptech companies and the people who join them.
For DPIIT-recognised or incubator-backed startups*: cloud credits of up to ₹49,999*, a free first month* on CPU VMs, and an architecture session with our engineers. Credits roll into normal hourly billing — no lock-in.
* Placeholder · indicative — credit amounts, eligibility and the free month are set per application.
Apply via Edge Cloud →Role-based live online batches and a 12-week integrated programme, plus cloud lab workspaces so new hires learn on real tools without a GPU of their own.
Each bundle is the sum of items at the prices on their own XcellHost pages. GPU compute is always quoted separately. Indicative · excl. 18% GST.
L40S, H100, H200, MI300X and B300-class configurations hosted in India. Send your GPU-hours plan and we quote the shape, term and hosting in INR with GST.
Tick items, set quantities and a term. Monthly items multiply by the term; yearly and one-time items are counted once.
Prices as listed on the linked XcellHost pages · indicative · excl. 18% GST in the lines above.
More than 4,200, including over 550 founded in 2025, according to the NASSCOM–Zinnov tech start-up report released on 25 February 2026. They raised $2.3 billion in 2025, up 37% on 2024; AI-led companies were 84% of the count and 91% of the funding.
Since the February 2026 DPIIT notification, a deep tech startup builds on new scientific or engineering knowledge, spends heavily on R&D and owns or is creating significant novel IP. It can stay recognised for up to 20 years from incorporation with turnover up to ₹300 crore, against 10 years and ₹200 crore for other startups.
The Research, Development and Innovation Fund was approved in July 2025 and launched in November 2025. Money flows from a Special Purpose Fund under ANRF to second-level fund managers — 19 were approved on 8 October 2026 with ₹7,131 crore committed — who then invest in companies working at TRL 4 and above. Startups approach those fund managers rather than the government.
Not as far as we could find. A draft was released for consultation by the Office of the Principal Scientific Adviser on 31 July 2023, and we found no final notified policy as of November 2026. The DPIIT deep tech startup category created in February 2026 is in force.
The IndiaAI Mission offers subsidised GPU access — 38,000+ GPUs at about ₹65 per GPU-hour on average, per PIB in February 2026 — through empanelled providers and an application process. XcellHost GPU servers are a separate commercial option, hosted in India and priced on quote, for teams that need dedicated capacity, specific configurations or a long-term reservation.
GPU pricing depends on the model, count, interconnect, storage, term and hosting, and supply changes month to month. We quote each configuration in INR with GST. Use the GPU-hours planner to arrive with a sized request and the quote is faster.
Encrypt them with keys held in a hardware security module, restrict who can decrypt, sign every release so tampering is detectable, and log access. Our Cloud HSM partitions, code signing service and DSPM cover those steps; a PQC roadmap workshop prepares long-lived IP for quantum-era cryptography.
They can. India controls dual-use goods, software and technology through the SCOMET list administered by DGFT, and imported chips, EDA tools or controlled technical data can also carry the exporting country's rules. Get a classification from qualified counsel; we help with the technical side — region locks, access controls and audit logs.
If you process digital personal data of people in India — patients, trial participants, drivers, customers or employees — yes. The DPDP Rules were notified on 13 November 2025 and the core duties apply from 13 May 2027. CERT-In's 6-hour incident reporting and 180-day log retention already apply.
Eligible DPIIT-recognised startups certified by the Inter-Ministerial Board can deduct 100% of profits for any three consecutive years out of their first ten. Budget 2025 extended eligibility to companies incorporated before 1 April 2030. From 1 April 2026 the deduction sits in section 140 of the Income-tax Act, 2025; confirm the details with your chartered accountant.
Official government sources first. Industry figures are labelled with their publisher.
Not legal, tax or investment advice. This page summarises public information for orientation. Schemes, eligibility and rules change; read the current official guidelines and take professional advice before you apply, invest or file. XcellHost is not a government agency or fund manager and does not process scheme applications. Hero scenes and tools use sample data; estimates are illustrative.