While global AI labs race to build bigger and bigger models, India is taking a different approach. On June 12, 2026, Bengaluru-based startup Avataar launched Varya, the country's first distilled video AI model, developed with support from the IndiaAI Mission and unveiled in New Delhi in the presence of S. Krishnan, Secretary at the Ministry of Electronics and Information Technology.
Varya is a 14-billion parameter video generation model that delivers quality comparable to leading global models such as Alibaba's Wan 2.2 and Google's Gemini Veo 3. What makes it different is the underlying architecture. Varya uses a distillation technique where a smaller student model learns from a larger teacher model, reducing the video generation process from 50 iterative steps to just 4 while maintaining comparable output quality. The result is a model that runs faster and at a fraction of the compute cost.
According to Avataar's internal benchmarks, Varya generates video at 48 paise per second, which makes it up to 10 times more cost-efficient than several leading global video models. The model has been specifically trained to understand and generate culturally rich visual outputs across India's regions, festivals, communities, food, clothing, public spaces and everyday life, not a generalized idea of India but the actual India that 1.4 billion people live in.
Sravanth Aluru, CEO and Co-Founder of Avataar, said India's AI opportunity will not be defined only by the largest models but also by the most efficient models, and that for a country of 1.4 billion people, affordability is not a feature but a prerequisite. Secretary Krishnan added that the launch shows model-building can be done in India and that Indian entrepreneurs are second to none in developing cutting-edge AI technologies.
While the world builds bigger AI, India just built a smarter one. 14 billion parameters. 4 steps instead of 50. 48 paise per second. 10 times cheaper. Backed by Peak XV. Trained on Indian compute. Built for the next billion stories.
𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐭𝐡𝐞 𝐀𝐈 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐈𝐦𝐩𝐚𝐜𝐭 𝐍𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫 for premium AI startup stories, founder deep-dives, delivered straight to your inbox. https://lnkd.in/gn-YfduG