In her Union Budget 2025-26 speech, Finance Minister Nirmala Sitharaman announced the creation of a new Centre of Excellence for Artificial Intelligence (AI) under a ₹500 crore allocation on AI in education. This initiative aims to advance AI education in India.
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India Allocates ₹500 Crore for AI Excellence Centre in 2025 Budget to Boost Innovation and Competitiveness
Sitharaman highlighted, “In 2023, I announced three AI Centres of Excellence focused on agriculture, health, and sustainable cities. Now, we will set up one dedicated to AI for education with a total outlay of ₹500 crore.” The government will also create AI talent and revolutionize manufacturing capabilities based on certain objective criteria, which would align the industry better to what they call Industry 4.0 – a level of technologically enabled manufacturing that requires a lot of trained workforce.
The Finance Minister also announced the establishment of five National Centres of Excellence for Skilling to equip the youth with industry-relevant skills. The centers will work with global partners to scale up manufacturing in the ‘Make for India, Make for the World’ context. This initiative will focus on the curriculum, covering the design, as well as the training of trainers, the certification of skills, and regular assessments.
Acknowledging concerns about the impact of AI on low-skill jobs, the Economic Survey 2024-25 pitched for “robust institutions” to aid workers in transforming themselves into medium- and high-skilled workers where AI will only improve them and not replace them.
The Survey argued that the impact of AI on labor markets is especially important for India, given the country’s large workforce and low per capita income. It proposed the creation of “stewarding institutions” to help identify both opportunities and risks related to AI. They must be cross-sectoral and able to mobilize quickly, balancing innovation and public welfare. Stewarding institutions, Survey noted, do not hinder innovation and rather ensure that policymakers are well-positioned to mitigate potential negative effects of emerging technologies before they become established.
FAQs
What is the Centre of Excellence for AI in India?
It is a new initiative announced in India’s 2025 Budget, with ₹500 crore allocated to advance AI education.
What are the key areas of focus for India’s AI initiatives?
The focus is on AI in education, agri-tech, deep tech research, and funding innovation in startups.
