While the Centre set aside INR 2,000 Cr for the initiative for the ongoing fiscal year, revised Budget estimates showed that only INR 800 Cr was used.
With an outlay of INR 10,372 Cr spanning five years, IndiaAI Mission aims to make the country an AI hub and offer cutting-edge compute power to startups at subsidised rates
FM Sitharaman mentioned the word “AI” multiple times in her Budget 2026 speech, touting the technology’s potential as a force multiplier for better governance
The Union Budget tabled in the Parliament today showed that only 40% of the proposed outlay for IndiaAI Mission in FY26 was used. While the Centre set aside INR 2,000 Cr for the initiative for the ongoing fiscal year, revised Budget estimates showed that only INR 800 Cr was used.
Meanwhile, finance minister Nirmala Sitharaman earmarked INR 1,000 Cr for the Centre’s flagship AI initiative for FY27.
With an outlay of INR 10,372 Cr spanning five years, IndiaAI Mission was approved by the Union Cabinet in March 2024. The initiative aims to make India an AI hub, offer cutting-edge compute power to startups and research institutions, and create customised AI solutions for the country.
Under the mission, the IT ministry has currently deployed more than 38,000 GPUs from companies like Hiranandani Group’s Yotta Data Services and NxtGen Cloud Technologies. Last year, the ministry also empanelled 11 startups and companies to build an indigenous foundational AI model.
Notably, FM Sitharaman mentioned the word “AI” multiple times in her Budget 2026 speech, touting the technology’s potential as a force multiplier for better governance.
“(The) twenty-first century is technology driven. Adoption of technology is for the benefit of all people… to access newer opportunities. The government has taken several steps to support new technologies through (the) AI Mission, National Quantum Mission, Anusandhan National Research Fund, and Research, Development and Innovation Fund,” Sitharaman said in her speech.
She also proposed the launch of Bharat-VISTAAR, a multilingual AI tool that will “enhance farm productivity, enable better decision making for farmers and reduce risk by providing customised advisory support”.
She also announced the setting up of a high level “Education-to-Employment and Enterprise Standing Committee” to assess the impact of AI on jobs and skill requirements. The panel will also propose measures for embedding AI in the school curriculum and upskilling technology professionals in the emerging technology.
In addition, the panel will recommend measures for AI-enabled matching of workers, jobs and training opportunities.
“The announcement of the ‘Bharat VISTAAR’ multilingual AI tool and the Education to Employment Standing Committee is particularly significant. It shows a dual commitment to innovation and inclusive growth, ensuring that as AI scales, our workforce remains future-ready,” said AI platform Covasant Technologies’ CEO Srikanth Chakkilam.
The FM also proposed further investments to fuel AI-led production of assistive devices for the specially-abled. The government will also leverage advanced imaging and AI technology to scan containers across all the major ports in the country.
Commenting on AI announcements in the Budget, enterprise intelligence startup impactree.ai’s founder and CEO Rajashri Sai said, “… The emphasis on national AI missions and a structured push to make the services sector a core driver of Viksit Bharat reflects a long-term view rather than a short-term stimulus”.
Curated by Shiv Shakti Mishra
