Eric Schmidt, former CEO of Google, once stated, “AI will be the most transformative technology since electricity.” India recognized this potential early on and has proactively embraced AI-driven initiatives over the past decade. Under the leadership of the central government, programs like the ‘National Strategy for Artificial Intelligence’ and the ‘India AI Mission’ have laid the foundation for ambitious advancements in AI across government, industry, and civil society.
In early 2024, during his visit to India, Microsoft CEO Satya Nadella projected that AI could contribute USD 500 billion to India’s GDP by the end of 2025—serving as a key driver toward the country’s USD 5 trillion economic goal. The Indian government has been at the forefront of this transformation, with the India AI Mission leading the charge. In March 2024, the Cabinet approved INR 10,300 crore for this initiative. Building on this momentum, Union Finance Minister Nirmala Sitharaman, in her eighth consecutive budget speech on February 1, 2025, unveiled a series of strategic measures focused on emerging technologies and workforce upskilling—aligning with the Viksit Bharat 2047 roadmap.
Key Focus Areas of the Union Budget on AI and Emerging Technologies
AI Centres of Excellence in Education – A dedicated Centre of Excellence for AI in education will be established with a budget of INR 500 crore. India’s online education sector is expanding rapidly, with projected revenues of approximately USD 7.57 billion in 2025 and an anticipated CAGR of 25.77% from 2025 to 2029. AI-powered personalized learning, along with AR/VR-based educational modules, has the potential to revolutionize accessibility and quality of education, especially in remote areas.
ATAL Tinkering Labs – At the 2019 Indian Science Congress, the Prime Minister extended the nation’s development vision with the phrase “Jai Anusandhan,” emphasizing India’s commitment to innovation across key sectors like healthcare, energy, and food processing. Building on this ethos, the Union Budget proposes establishing 50,000 Atal Tinkering Labs over the next five years. These labs will provide students with hands-on experience in robotics, 3D printing, and other cutting-edge technologies, fostering curiosity, innovation, and a scientific mindset among young learners.
Strengthening IITs – The budget allocation for IITs has been increased from INR 10,324.5 crore in FY 2024-25 to INR 11,349 crore—an increase of 9.92%. This boost will enhance research infrastructure and technical education, supporting an additional 6,500 students. This move continues the government’s decade-long commitment to improving the quality of IIT education through initiatives like Research Parks, IMPRINT (Impacting Research Innovation and Technology), and UAY (Uchhatar Avishkar Yojana).
Youth Upskilling Initiatives – According to the Economic Survey, 53% of graduates and 36% of postgraduates in India are underemployed, working below their skill levels. Recognizing this challenge, the government had already announced plans to upgrade 1,000 ITIs over five years. The Union Budget builds on this by proposing five National Centres of Excellence for Skilling, developed in collaboration with global experts. These centres aim to equip India’s workforce with the skills necessary for global manufacturing and technology sectors, furthering the ‘Make in India, Make for the World’ vision. Additionally, the Education Ministry’s budget for 2025-26 has been set at INR 1,28,650.05 crore, with INR 78,572.1 crore allocated for school education and INR 50,077.95 crore for higher education.
Encouraging Research and Innovation – Financial constraints often hinder talent from pursuing research. To address this, the Prime Minister’s Research Fellowship (PMRF) Scheme was introduced in 2018-19 to support PhD students at premier institutions like IITs, IISc, and IISERs. Expanding on this, the Union Budget has announced 10,000 new research fellowships with increased financial assistance over the next five years, with a significant portion expected to drive advancements in AI and Large Language Models.
Gyan Bharatam Mission – In 2003, the National Mission for Manuscripts was launched to preserve India’s vast repository of 10 million manuscripts. Building on this heritage initiative, the Union Budget introduces the ‘Gyan Bharatam Mission’ to document, conserve, and digitize over one crore manuscripts. The mission’s budget has been significantly increased from INR 3.5 crore to INR 60 crore, leveraging technology for the preservation and accessibility of these priceless historical records.
India’s AI-driven future is being shaped by bold policy decisions, strategic investments, and a commitment to technological advancement. With sustained efforts in research, education, and workforce development, the country is well-positioned to lead the AI revolution on the global stage.
Eyes on Viksit Bharat
Bill Gates once famously stated, “Humanity’s greatest advances are not in its discoveries but in how those discoveries are applied to reduce inequity.” This notion resonates with the core principles of Antyodaya and Integral Humanism, alongside the concept of ‘cultural nationalism’ (in contrast to the West’s notion of the nation-state), which reflect the essence of the BJP's vision. It aligns with how India has leveraged technology to reduce disparities in various sectors. Upon taking office in 2014, the BJP government launched the transformative Digital India programme on July 1, 2015, setting a trajectory of progress that continues to unfold.
Furthermore, FM Sitharaman’s Budget 2025 speech further strengthens this ongoing journey toward an aspirational India, propelling the nation toward the vision of Viksit Bharat 2047.
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