IndiaAI, an Independent Business Division under the Digital India Corporation (DIC), Ministry of Electronics and IT (MeitY), has launched the IndiaAI Innovation Challenge 2026 in collaboration with the Ministry of AYUSH and Ministry of MSME. This competitive programme invites market-deployed AI solutions to address critical real-world problem statements in healthcare and small business governance.
Selected teams stand to secure a two-year work contract worth up to INR 1 Crore for deploying AI-powered solutions that strengthen public service delivery and enable data-driven decision-making across national governance systems.
Challenge Objectives
The IndiaAI Innovation Challenge 2026 seeks to identify scalable, deployment-ready AI solutions that demonstrate:
- Ability to analyse complex datasets and generate actionable insights
- Support for predictive and decision-making processes within existing digital systems
- Scalability, security, and interoperability with existing platforms
- Compliance with national data protection and cybersecurity frameworks
- Efficient implementation potential within public sector environments
Problem Statements & Expected Solutions
The Challenge focuses on three key problem areas:
1. AI-Enabled Virtual Negotiation Assistance (MSME)
Develop AI-powered virtual negotiation assistants to support digital dispute resolution for Micro, Small and Medium Enterprises through:
- Automated form population using voice inputs
- Document analysis and classification
- Outcome prediction based on legal precedents
- Multilingual real-time negotiation support
- Automated drafting of settlement agreements
2. AI-Powered MSE Agent Mapping Tool (MSME)
Create intelligent systems for the Trade Enablement and Marketing (TEAM) initiative to help MSEs discover buyers on the Open Network for Digital Commerce (ONDC) through:
- Multilingual voice-enabled digital registration
- AI-driven product categorisation
- Intelligent matching of MSEs to suitable Seller Network Participants (SNPs)
- Automated compliance validation
3. AI-Enabled Integrated Early Warning & Treatment System (AYUSH)
Build comprehensive AI systems for the AYUSH Hospital Management Information System (AHMIS) that enable:
- Voice-based multilingual Electronic Health Record (EHR) creation
- Early detection and prediction of disease outbreaks
- Personalised AYUSH treatment and lifestyle recommendations
- Public health risk forecasting and preventive planning
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Who Can Apply?
The Challenge welcomes applications from:
- Registered Indian Companies: Entities incorporated under the Companies Act, 2013, with a minimum of 51% Indian shareholding.
- Recognized Start-ups: Start-ups officially recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
- Autonomous & Institutional Bodies: This includes public sector organizations, research institutions, universities, and registered non-profit organizations.
- Individual Applicants: Indian students, researchers, and working professionals who are affiliated with recognized institutions.
Selection Process & Major Milestones
The Challenge will be implemented in two stages:
Stage 1: Solution Development and Testing
- Participants submit AI solutions with team details, technical specifications, and business plans
- Applications reviewed by distinguished panel of technical and sectoral experts
- Shortlisting of up to 3 teams per problem statement
- Each shortlisted team receives INR 25 Lakhs for refining and piloting their solution with support from relevant Line Ministry
Stage 2: Finalising Solution and Deployment
- Selected teams share pilot progress, security audit reports, integration capabilities, and final performance metrics
- Winner secures two-year work contract worth up to INR 1 Crore for integration, deployment, operation, and maintenance of their solution in partnership with IndiaAI and respective Line Ministry
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Key Benefits for Participants
Opportunity to Build for the Nation: Contribute to developing innovative solutions addressing critical national challenges with direct societal impact.
National Recognition: Gain visibility and recognition from government officials, industry leaders, and peers.
Networking Opportunities: Connect with innovators, potential collaborators, and key stakeholders in the tech ecosystem.
Real-World Problem Solving: Work on pressing issues providing practical experience and deep understanding of national-scale challenges.
Implementation Support: Winners receive support for scaling and implementing solutions at national level.
Substantial Funding: Receive work contract worth up to INR 1 Crore over 2 years to deploy solutions for Government of India and associated entities.
Intellectual Property Rights
All Intellectual Property Rights (IPR) belong to the solution owner participating in the Challenge. However, IndiaAI and partnering institutions shall have a non-exclusive, royalty-free, perpetual license to use the awarded AI solution. Solution owners will be bound by Non-Disclosure Agreement (NDA) terms.
Important Dates
| Event | Date |
|---|---|
| Challenge Launch Date | 15 January 2026 |
| Last Date for Submission | 22 February 2026 |
| Stage 1: Declaration of Results | To Be Confirmed |
| Pilot and Technical Verification | To Be Confirmed |
| Stage 2: Winner Announcement | To Be Confirmed |
Evaluation Criteria
Solutions will be evaluated on both general and technical parameters:
General Parameters:
- Approach towards problem solving (innovation, uniqueness, novelty)
- Solution technical feasibility (scalability, interoperability, technology stack)
- Product roadmap (cost, regulatory compliance, system integration)
- Team ability and prior experience
- Adherence to Responsible AI principles
- Compliance with data policies and cybersecurity guidelines
Technical Parameters:
- Data preparation and quality
- Model building and variety
- Model evaluation metrics (accuracy, precision, recall, F1 score, AUC-ROC)
- Technical robustness (inference latency, cost per inference)
Application Requirements
Applicants must prepare comprehensive submissions including:
Team Information
- Applicant type, team name, and leader details
- Organisation information and registration details
- Team member profiles with roles and expertise
- Prior experience in AI solution development
- Experience with public and private sector collaboration
Project Proposal
- Solution title and problem statement addressed
- Technology details including proprietary model information
- Comprehensive description of functionality and features
- Architecture diagrams and technical documentation
- Data governance and security measures
- Compliance with Responsible AI principles
- Scalability and integration readiness
- Pilot/deployment evidence
Business Plan
- Business model and revenue strategies
- Market analysis and competition assessment
- Go-to-market strategy
- Partnerships and collaborations
Supporting Documents
- Pitch deck (mandatory)
- Certificate of incorporation/legal registration
- Startup recognition certificate (if applicable)
- Technical documentation and proof of IPs/Patents
- Solution demo video (2-3 minutes)
- Additional supporting materials
How to Apply
- Visit the IndiaAI portal to access the application form
- Team leader completes individual registration and sign-up
- List all team members and complete organisation details
- Answer all additional questions and upload required documents
- Submit application before 22 February 2026
Applications must be submitted within the specified time period from the launch date.
Why This Challenge Matters
The IndiaAI Innovation Challenge 2026 represents a unique opportunity to contribute to nation-building through cutting-edge AI technology. By addressing critical challenges in AYUSH healthcare and MSME governance, selected solutions will directly impact millions of citizens and small businesses across India.
With substantial funding support, government backing, and potential for national-scale deployment, this Challenge offers AI innovators an unprecedented platform to transform their ideas into impactful public service solutions.
For detailed submission guidelines and to apply, visit the IndiaAI portal. Start preparing your application today to secure your place in shaping India’s AI-powered future in governance and healthcare.
Frequently Asked Questions
Q1. When was the IndiaAI Innovation Challenge 2026 launched?
The Challenge was officially launched on 15 January 2026.
Q2. How many problem statements are available?
There are three problem statements: two from Ministry of MSME and one from Ministry of AYUSH.
Q3. What is the total funding available for winners?
Selected teams receive INR 25 Lakhs in Stage 1, and winners can secure a two-year work contract worth up to INR 1 Crore in Stage 2.
Q4. Can individual researchers apply?
Yes, Indian students, researchers, and working professionals affiliated with recognised institutions can participate individually or as teams, provided they are Indian citizens.
Q5. What is the application deadline?
The last date for submission is 22 February 2026.
Q6. Do teams need to be registered as companies to apply?
No, but if selected for Stage 2, teams must register as a Company or Start-up.
Q7. Who owns the intellectual property?
IPR belongs to the solution owner, but IndiaAI and partners receive a non-exclusive, royalty-free, perpetual license to use the solution.
Q8. What types of AI solutions are eligible?
Existing AI-enabled products, services, or business models that have been piloted or deployed and address one of the three problem statements are eligible.
