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Maharashtra’s AI Policy: 1.5 lakh jobs to Rs 500 crore startup fund, here’s all about it

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The Maharashtra government has rolled out its ‘State AI Policy-2026’, offering a roadmap to increase the use of artificial intelligence across industries and public services. The policy was cleared during a Cabinet meeting and includes plans for a dedicated State AI Mission to oversee implementation across sectors.

The groundwork for the policy had begun in January last year when the state government announced a 16-member committee to prepare recommendations for Maharashtra’s first standalone AI framework.

Maharashtra is aiming to attract investments of over ₹10,000 crore and create more than 1.5 lakh employment opportunities by 2031, Business Line reported. The government also plans to train nearly 2 lakh students, professionals and young workers in AI-related skills over the next few years.
AI infrastructure and government systems

A major part of the policy focuses on building digital infrastructure for artificial intelligence. As per the report, the state plans to develop a computing ecosystem with a minimum capacity of 2,000 GPUs to support AI-based projects and services.

Government departments will also be able to access shared resources through a ‘Compute-as-a-Service’ system. The policy additionally proposes the development of specialized ‘AI Cities’ in five innovation-driven sectors.

To strengthen regional language AI tools, Maharashtra will create datasets which will cover Marathi, local dialects and tribal languages. These datasets will be brought together under a ‘State AI Data Exchange’ platform and linked with the Centre’s AI Kosh initiative.

The policy also introduces provisions related to ethical AI usage where there will be annual AI readiness audits for government departments.

Support for MSMEs and start-ups

To encourage AI adoption among smaller businesses, the government will offer subsidies covering 20% ​​of implementation expenses for 5,000 MSMEs. A centralized support platform called ‘Maha AI Tools Hub’ will also be launched.

The report further mentioned that the state has also proposed a ₹500 crore AI Startup Venture Fund with equal participation expected from the government and private investors.

Under the policy, eligible start-ups can receive grants of up to ₹1 crore. Additional incentives have been announced for women-led ventures where financial support of up to ₹2.5 crore and extra assistance of 25% will be provided.

The Maharashtra government has also announced multiple incentives for industries investing in AI projects. These include up to 20% support on fixed capital investment, a full stamp duty waiver and electricity tariff assistance of ₹2 per unit for 10 years. Companies will also get reimbursement benefits of up to ₹8 lakh for domestic patents, ₹10 lakh for international patents and up to ₹25 lakh for certification and international exhibition expenses.

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