In an ambitious move to advance artificial intelligence in the country, the Indian government has unveiled plans to establish a new Centre of Excellence for AI in Education, with a budget allocation of Rs 500 crore. This announcement was made by Finance Minister Nirmala Sitharaman during her Union Budget 2025-2026 speech.
During her address, Sitharaman remarked, “In 2023, I announced the creation of three centres of excellence in AI for agriculture, health, and sustainable cities. Now, we are expanding our focus to include education with a new Centre of Excellence in AI, supported by a ₹500 crore investment.”
In addition to bolstering AI in education, the government will enhance domestic manufacturing capacity by identifying key sectors based on objective criteria. Highlighting the potential of Industry 4.0, Sitharaman emphasized the need for high skills and talent to seize the burgeoning opportunities in this domain during her speech on Union Budget 2025-2026.
The Finance Minister also introduced plans for five National Centres of Excellence for Skilling in the Union Budget 2025-2026, aimed at equipping the youth with industry-relevant skills. “These centres will be established in collaboration with global partners to support the ‘Make for India, Make for the World’ initiative,” she said. The initiative will encompass curriculum design, training of trainers, a skill certification framework, and regular assessments.
These measures come in response to the rapid growth of AI globally, amid concerns that it could lead to job displacement. The Economic Survey 2024-25, released on Friday, underscored the vulnerability of India’s workforce in low-skill and low-value-added services to AI. It advocated for the establishment of “robust institutions” to help transition workers to medium- and high-skilled jobs, where AI can enhance rather than replace their efforts.
The survey introduced the idea of “stewarding institutions,” which would be agile, cross-sectoral, and current with the latest developments. These institutions would be tasked with identifying both opportunities and threats posed by AI, ensuring a balanced approach that supports public welfare without hindering innovation.
It further clarified that stewarding “does not imply placing restrictions on innovation or dictating a narrow set of applications for technology.” Instead, policymakers should “demonstrate a certain degree of cognizance regarding emerging technologies, ensuring they are well-prepared to mitigate any adverse effects that may arise from technological applications.”
Focus Areas of Union Budget 2025-2026
The Union Budget 2025-2026 includes several other key initiatives and measures, besides the initiatives on promoting Artificial Intelligence in the Country.
Infrastructure Development: Significant investment in infrastructure projects, including roads, highways, railways, and urban development, to boost connectivity and economic growth.
Healthcare: Increased allocation for healthcare, aiming to improve medical facilities, expand healthcare services in rural areas, and enhance the overall health infrastructure.
Education: Enhanced funding for educational institutions, including new scholarships and programs to improve the quality of education and increase accessibility for students from underprivileged backgrounds.
Agriculture: Support for the agricultural sector through subsidies, improved irrigation facilities, and initiatives to promote sustainable farming practices and increase farmers’ income.
Digital Transformation: Continued efforts to promote digitalization, including expanding internet connectivity in rural areas, enhancing cybersecurity measures, and encouraging the adoption of digital technologies across various sectors.
Tax Reforms: Introduction of new tax policies and reforms aimed at simplifying the tax system, reducing compliance burdens for taxpayers, and increasing tax revenue.
Environment and Sustainability: Initiatives to promote renewable energy, reduce carbon emissions, and enhance environmental conservation efforts to address climate change and ensure sustainable development.