Delhi Government Seeks Startup Collaborations for AI-Driven Governance, Healthcare, and Mobility
A Proactive Push for Public-Sector AI Adoption
The Delhi government is actively seeking to integrate artificial intelligence into its governance framework, marking a significant step in India’s public-sector digital transformation. The Information Technology Department has invited technology companies, startups, academic institutions, and research organisations working in AI to come forward with solutions across key sectors including governance, healthcare, education, air quality monitoring, and mobility .
The initiative, announced in late April 2026, aims to leverage AI tools for digital health governance, predictive disease surveillance, hospital resource optimisation, and citizen-centric service platforms to enhance efficiency and responsiveness in government systems .
“The objective is to identify and adopt innovative, AI-based solutions that could be piloted at department levels.”
— Senior Delhi Government Officer
Participating organisations are required to demonstrate their AI tools before an evaluation committee, presenting the technology used, deployment status, and potential benefits for government use. The exercise is expected to lead to pilot projects and future collaborations between the government and selected companies .
The Infrastructure Backbone: Two AI Centres of Excellence
Complementing this partnership drive, the Delhi government has announced the establishment of two Artificial Intelligence Centres of Excellence (AI-CoEs) under the IndiaAI Mission of the Ministry of Electronics and Information Technology .
Key Details of the AI-CoEs:
| Aspect | Details |
|---|---|
| Locations | Netaji Subhas University of Technology (NSUT) and Guru Gobind Singh Indraprastha University (GGSIPU) |
| Investment per Centre | ₹20 crore |
| Funding Model | 40:40:20 (MeitY, Delhi Government, Industry/Academic Partners) |
| Startup Support | ~100 startups over four years |
| Training Target | 7,000+ individuals |
| Job Creation | 1,000+ employment opportunities |
Sources: Elets eGov, The Indian Express, Hindustan Times
Budgetary Commitment for FY26-27
The Delhi Budget for 2026-27, presented by Chief Minister Rekha Gupta on March 24, 2026, allocated ₹8.20 crore for the two AI Centres of Excellence. These centres are envisioned as dedicated hubs for AI research, innovation, startup incubation, and capacity building, with a focus on developing AI-based solutions for governance and key sectors such as healthcare, education, urban mobility, and public service delivery .
Additionally, the budget proposed a provision of ₹10 crore for the “use of artificial intelligence” in assessment systems, examination processes, and personality development in the education sector, aiming to improve learning outcomes and streamline evaluation systems .
The Startup Policy: Targeting 5,000 Ventures by 2035
The upcoming fiscal year will also see the rollout of a new startup policy. The draft policy, which is in the public domain, aims to support the emergence of at least 5,000 startups by 2035, with key focus areas including healthcare services, hospitality, fintech, robotics and automation, AI, machine learning, drones, gaming, and augmented reality .
Delhi minister Ashish Sood previously stated that the policy will have an outlay of ₹350 crore over five years .
Complementary Tech Initiatives: Drone and Semiconductor Policies
Beyond AI, the Delhi government is building a comprehensive technology ecosystem. The Budget 2026-27 also included:
Drone Policy:
The government announced the formulation of a dedicated Drone Policy with a proposed outlay of ₹1 crore for the 2026-27 financial year. The policy aims to attract investments from private players, support startups and manufacturing, and generate employment in the sector .
Semiconductor Policy:
A dedicated Semiconductor Policy has been proposed to promote design, innovation, and technological development in Delhi, with an outlay of ₹1 crore also earmarked for this initiative .
MSME Support: RAMP Scheme and Common Facility Centres
The government is also focusing on strengthening the MSME sector, which forms the backbone of Delhi’s economy:
| Initiative | Allocation/Target |
|---|---|
| Common Facility Centres (CFCs) | ₹48 crore for construction |
| RAMP Scheme Training | 32,000 MSMEs |
| Digital Integration | 15,000 businesses connected to GeM and ONDC |
Source: Business Standard, ThePrint
What This Means for Startups
The Delhi government’s proactive AI push creates several significant opportunities for startups:
1. Direct B2G (Business-to-Government) Revenue Streams
Startups now have a structured pathway to work directly with government departments through pilot projects and long-term collaborations. The expression of interest process ensures that qualifying startups can demonstrate their solutions and secure government contracts .
2. Incubation and Infrastructure Support
The two AI Centres of Excellence will provide startups with access to research infrastructure, mentorship, and industry connections that are often difficult to access outside major tech hubs .
3. Training and Talent Pipeline
With over 7,000 individuals to be trained in AI and related technologies, startups will benefit from a growing pool of skilled talent equipped to work on cutting-edge AI projects .
4. Sectoral Opportunities
The government has identified clear focus areas for AI adoption:
- Healthcare: Digital health governance, predictive disease surveillance, hospital resource optimisation
- Education: AI in assessment systems, examination processes, personality development
- Governance: AI-driven solutions for public service delivery
- Mobility: Urban mobility solutions
- Air Quality Monitoring: Environmental monitoring tools
5. Complementary Tech Policies
The concurrent development of Drone and Semiconductor Policies creates cross-sectoral opportunities for startups working at the intersection of these technologies .
Political and Economic Context
The initiative is part of a broader vision articulated by Chief Minister Rekha Gupta during her budget presentation: “We do not wish to limit Delhi merely to being a service economy; rather, we aim to establish it as an innovation-driven, industrial powerhouse” .
The government has emphasised that under the leadership of Prime Minister Narendra Modi, Delhi aims to develop a semiconductor manufacturing, research and development ecosystem, and position itself as a hub for future technologies .
The Road Ahead
The Delhi government’s AI push reflects a paradigm shift where governments are becoming active adopters of startup-led innovation, not just regulators. For startups, this means new opportunities to build impact-driven AI solutions that can transform millions of lives through improved public service delivery.
As Delhi IT Minister Pankaj Kumar Singh stated: “Delhi is taking a decisive leap into the future by investing in Artificial Intelligence for promoting innovation and economic growth. These AI Centres of Excellence will not only nurture cutting-edge research and startups but also ensure that technology meaningfully improves the lives of our citizens”
