In her 8th Union Budget presentation, Finance Minister Nirmala Sitharaman outlined the Cabinet’s commitment to the integration of Artificial Intelligence (AI) across various sectors of the Indian economy. With a strong focus on education, agriculture, healthcare, and governance, the government has significantly increased allocations for AI-related schemes compared to previous years. Key highlights of the budget include the establishment of a new Centre of Excellence (CoE) in AI for education, along with expanded funding for ongoing AI missions and initiatives, signaling the government’s dedication to advancing AI as a cornerstone of India’s future growth.
Key Points from the Union Budget 2025
Centre of Excellence in AI for Education
- A new Centre of Excellence with a capital outlay of ₹500 crore will be set up in the education sector.
- This builds on the three previously approved Centres of Excellence aimed at advancing AI research and its applications.
India AI Mission
- The IndiaAI mission, launched in April 2024, will see a massive increase in funding, with ₹2000 crore allocated for FY26. This mission aims to bring AI to critical sectors like agriculture, healthcare, and governance.
- The allocation marks a 1056% increase from the previous year’s budget of ₹173 crore.
Centres of Excellence in AI
- Allocations for Centres of Excellence, which focus on exploring AI applications in governance, will rise by 82%, from ₹110 crore in FY25 to ₹200 crore in FY26.
National Mission on Interdisciplinary Cyber-Physical (NM-ICPS)
- AI is part of this broader initiative which focuses on identifying technological needs across ministries, while also promoting R&D in IT, electronics, and other key sectors.
Other Schemes with AI Involvement
- Several schemes now incorporate AI, such as those focused on sustainable cities, agriculture, health, and rural development, reflecting AI’s diverse role in national development.
Summary/Static | Details |
Why in the news? | AI in Focus: Key Allocations in Union Budget 2025 |
Scheme/Initiative | Budget Allocation (₹ Crore) |
IndiaAI Mission | ₹2000 (FY26) |
Centres of Excellence in AI (Education) | ₹500 (New CoE) + ₹200 (FY26) |
AI in Governance (Centres of Excellence) | ₹200 (FY26) |
National Mission on Interdisciplinary Cyber Physical Systems (NM-ICPS) | Included in broader schemes |
R&D in IT/Electronics/CCBT | Part of broader R&D initiatives |
Total AI-related Schemes (FY26) | ₹4,349.75 |