Budget bets big on AI
New Delhi: Union Budget 2026 has put artificial intelligence firmly at the centre of India’s growth blueprint, with the government allocating Rs 1,000 crore to the IndiaAI Mission, one of the largest outlays under its emerging technology agenda.
Presenting the Budget, Union Finance Minister Nirmala Sitharaman underlined AI’s potential as a powerful economic multiplier, signalling a long-term commitment to making India a globally competitive hub for AI-led innovation.
Beyond headline allocations, the Budget adopts a structural approach to embedding AI across sectors. AI-based tools for agriculture are among the initiatives aimed at ensuring technology-led gains reach the grassroots, improving productivity and decision-making for farmers while narrowing the digital divide.
Funding for AI comes alongside a sharp push to scale India’s semiconductor plans. The budget earmarks Rs 8,000 crore for the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem, which is for supporting chip fabrication, assembly, testing and display manufacturing units.
Support for the broader electronics manufacturing ecosystem has also been strengthened. The Production Linked Incentive (PLI) scheme for electronics and IT hardware has been allocated Rs 1,527 crore in BE 2026-27, while the Electronics Components Manufacturing Scheme (ECMS) has received Rs 1,500 crore.
Spending on technology research remains steady, with Rs 1,248 crore allocated for R&D in IT, electronics and emerging technologies, according to budget documents.
