The Union Budget 2025-26 has introduced significant initiatives to boost artificial intelligence (AI) and deep tech innovation, reinforcing India’s ambition to become a global technology leader. Finance Minister Nirmala Sitharaman announced the establishment of a Centre of Excellence in AI for Education and a Deep Tech Fund to support startups, aligning with India’s long-term vision of Viksit Bharat by 2047.
As part of the government’s focus on AI-driven growth, the new Centre of Excellence in AI for Education will be set up with a total investment of ₹500 crore. The initiative aims to integrate AI into learning, improve educational outcomes, and equip students with future-ready skills.
Reacting to the budget, Puneet Chandok, President of Microsoft India & South Asia, welcomed the government’s push for AI and technology. “It’s heartening to see the government’s vision of building Viksit Bharat by 2047 with AI and technology in the Union Budget 2025,” he said. He also emphasised the need to capitalise on AI opportunities and train India’s young workforce to stay competitive globally.
Microsoft is already investing in India’s AI ecosystem, having recently committed $3 billion to cloud and AI infrastructure. The company has also partnered with IndiaAI to skill 500,000 individuals—including students, educators, and women entrepreneurs—by 2026, as part of its broader goal to train 10 million Indians in AI skills by 2030.
The budget introduces a Deep Tech Fund of Funds, aimed at supporting next-generation startups in AI, semiconductors, robotics, and other emerging technologies. Chandok highlighted the transformative potential of AI, stating: “There is no doubt AI has the potential to transform every sector of Indian society—from boardrooms to classrooms, commerce to communities, and finance to farmers.”
With these initiatives, India is accelerating its AI adoption and innovation, fostering a skilled workforce, and reducing dependence on foreign technology. The government’s investment in AI and deep tech aligns with its broader economic and technological ambitions, ensuring that India remains a key player in the global digital economy.