Budget 2025-2026: Artificial Intelligence to Get Special Attention from FM Nirmala Sitharaman

Artificial Intelligence (AI) is poised to take center stage in Union Budget 2025-2026, with sources revealing to Business Today TV that the government is likely to make a “special mention” of India’s AI advancements and capabilities.

The move reflects India’s growing emphasis on leveraging AI as a transformative technology for national development and global competitiveness.

Government’s Commitment to AI: India AI Mission

In March 2024, the Indian Cabinet approved a substantial allocation of over Rs 10,300 crore for the India AI Mission, a testament to the government's commitment to fostering AI-driven innovation. This financial package, spread across five years, is designed to support various initiatives under the mission, including:

• India AI Compute Capacity: To enhance computational infrastructure.

• India AI Innovation Centre (IAIC): A hub for breakthrough research.

• India AI Datasets Platform: Facilitating access to high-quality data.

• India AI Application Development Initiative: Encouraging the creation of AI-based solutions.

• India AI Future Skills: Upskilling programs for the workforce.

• India AI Startup Financing: Boosting the AI startup ecosystem.

• Safe & Trusted AI: Ensuring ethical and secure AI development.

Industry Proposals and New Initiatives

The industry has proposed a 20% increase in allocation for the India AI Mission, underlining the escalating demand for AI technologies in sectors like healthcare, education, agriculture, and governance.

Sources indicate that the Ministry of Electronics and Information Technology (MEITY) has recommended establishing AI innovation hubs and dedicated clusters in metropolitan areas to nurture entrepreneurship and foster innovation.

MEITY is also advocating for the integration of AI into public governance systems, including applications in traffic management, disaster response, and public service delivery. Furthermore, a national policy framework may be introduced to address critical issues like ethical AI practices, data privacy, and intellectual property rights.

Prime Minister Modi’s Engagement with Global AI Leaders

As part of the government's preparations for Budget 2025-2026, Prime Minister Narendra Modi has engaged with global tech leaders such as Microsoft CEO Satya Nadella, Vianai Systems founder Vishal Sikka, and Perplexity AI CEO Aravind Srinivas. These discussions focused on fostering international collaborations, highlighting India's AI potential, and promoting a human-centric approach to AI development.

India’s Unique Position in the Global AI Race

The global AI industry is projected to contribute a staggering $15.7 trillion to the world economy by 2030. India, with its extensive IT talent pool, thriving startup ecosystem, and increasing demand for digital innovation, is strategically positioned to become a global AI powerhouse. The country's focus on AI aligns with its vision of achieving technological self-reliance and global leadership in emerging technologies.

Conclusion

The Union Budget 2025-2026 is set to spotlight AI as a critical driver of India’s growth, reflecting the government’s strategic vision and long-term commitment to technological innovation. With initiatives like the India AI Mission, proposals for AI innovation hubs, and global collaborations, India is laying a robust foundation for a future shaped by AI.

As the country capitalizes on its vast resources and talent, the emphasis on ethical AI practices and inclusive growth ensures a balanced approach to this transformative technology. India is not only gearing up to lead the global AI narrative but also to redefine its economic and social development through the power of artificial intelligence.