The government has increased allocation for key technology projects including production-linked incentives (PLIs) for mobile phones, IT hardware, semiconductor scheme and IndiaAI Mission, by about 84 per cent to ₹18,000 crore for the next fiscal, apart from setting up a Centre of Excellence in Artificial Intelligence (AI) for education with a total outlay of ₹500 crore.

3 Centres of Excellence

“I had announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ₹500 crore,” Finance Minister Nirmala Sitharaman said.

The launch of a ₹500 crore AI Centre of Excellence for education and the establishment of five National Centres of Excellence for Skilling are forward-looking initiatives that align workforce capabilities with evolving industry demands, IT industry body Nasscom said.

“These measures will strengthen the adoption of 21st-century skills in schools and encourage students to develop competencies such as critical thinking, problem-solving, and digital literacy,” Rajeev Tiwari, Co Founder of Stemrobo Technologies, said.

Apart from the AI Centre of Excellence, the establishment of five National Centres of Excellence for Skilling is also a pivotal move in building a future-ready workforce, the industry veterans said.

“This initiative resonates with our commitment to engineering a better future for India’s youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs,” Warren Harris, CEO & MD, Tata Technologies, said.

Push for AI research

“The ₹500 crore push for AI research, coupled with expansive upskilling initiatives, will create a dual impact: India will emerge as both the largest consumer of AI and one of the world’s most formidable AI talent hubs. This is a defining moment where innovation meets opportunity, and India positions itself at the forefront of the global AI revolution,” Hitesh Motwani, CEO, Skillopedia and a leading Generative AI Trainer, said.

IndiaAI Mission

Meanwhile, the Budget has also revised the allocation for the key electronic sector project was around ₹9,766 crore in the current financial year, according to the Budget documents. As per the documents, the allocation for IndiaAI Mission has been increased by over 11 times to ₹2,000 crore.

The total allocation for Ministry of Electronics and IT (MeitY) has been raised by around 48 per cent to ₹26,026.25 crore for 2025-26 against ₹17,566.31 crore under the revised allocation for the current fiscal.

The highest allocation of ₹8,885 crore has been made for the PLI scheme for Large Scale Electronics Manufacturing that focuses on the production of mobile phones, where companies like Foxconn, Tata Electronics, Dixon Technologies, Lava International and others are the beneficiaries.

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