Budget 2025-2026: AI Could Get Special Mention by FM Nirmala Sitharaman in Budget statement

Artificial Intelligence (AI) is likely to be a key focal point in Union Budget 2025-2026, sources tell Business Today TV. The government expected to make a "special mention" of India’s AI capabilities.

In March 2024, the Cabinet approved an allocation of over Rs 10,300 crore for the India AI Mission. This significant financial investment, spread over the next five years, aims to drive various components of the India AI Mission, including initiatives such as the India AI Compute Capacity, India AI Innovation Centre (IAIC), India AI Datasets Platform, India AI Application Development Initiative, India AI Future Skills, India AI Startup Financing, and Safe & Trusted AI.

 Sources have also indicated that there could be a specific mention of "AI skilling programs," developed collaboratively by the Ministry of Finance and the Ministry of Electronics and Information Technology (MEITY). Additionally, there is a proposal from the industry for up to 20% increase in the allocation for the IndiaAI Mission, reflecting the growing demand for AI technology across sectors in India.

 As per sources, MEITY in an internal presentation has proposed the creation of AI innovation hubs and dedicated clusters in major cities to foster entrepreneurship and innovation. The government as a long-term plan may also prioritize the integration of AI into public governance systems, including traffic management and disaster response, while introducing a national policy framework to address ethical AI usage, data privacy, and intellectual property concerns.

 In the lead-up to the Budget, Prime Minister Narendra Modi also engaged with global tech leaders, including Microsoft CEO Satya Nadella, Vianai Systems founder Vishal Sikka, and Perplexity AI CEO Aravind Srinivas, to explore opportunities and emphasize a human-centric approach to AI.

 India’s growing focus on AI comes at a pivotal time when global economies are heavily investing in this transformative technology, projected to contribute $15.7 trillion to the global economy by 2030. With its vast IT talent pool, burgeoning startup ecosystem, and increasing demand for digital solutions, India is uniquely positioned to emerge as a global AI leader.