The Indian government has made significant financial commitments to enhance artificial intelligence (AI) and technology through its recent budget. Here’s a detailed overview of the allocations and initiatives for the upcoming fiscal year.
The government has allocated a substantial ₹500 crore for establishing a Centre of Excellence in Artificial Intelligence (AI) aimed at improving educational applications and fostering innovation in AI-driven technologies.
The IndiaAI Mission is set to receive ₹2,000 crore for FY26, marking a significant increase from the previous year’s allocation of ₹173 crore. This funding will help establish 20 AI curation units in various central ministries and create 80 IndiaAI labs across the nation.
AI curation units will play a crucial role by curating datasets, which will include non-personal information such as passport records. These units are designed to foster collaboration between the central and state governments, promoting AI-driven innovation.
In an effort to stimulate private-sector initiatives, the government has allocated ₹20,000 crore to support research, innovation, and development. This funding will also pave the way for a “Deep Tech Fund of Funds,” aimed at bolstering startup growth in the technology sector.
The Ministry of Electronics and Information Technology (MeitY) has received a notable ₹26,026.25 crore for FY26. This budget will focus on areas such as semiconductor manufacturing and the overall development of electronics, which are pivotal for the country’s technological advancement.
The recent budget has introduced new tax policies that reduce the basic customs duty (BCD) on specific electronic components from 20% to 10%. This change is expected to enhance the competitiveness of Indian manufacturing in the global market.
The budget also outlines initiatives aimed at financing 25 deep-tech startups through the IndiaAI Mission, which will support industry-led projects and technological innovation.
To improve digital infrastructure, the government has allocated ₹5 crore to establish the Data Protection Board of India. Additionally, there are plans to expand the DigiLocker platform by adding 83.3 million documents by FY26, further enhancing digital accessibility.
"Education is the most powerful weapon which you can use to change the world."
Q1. What is the purpose of the Centre of Excellence in AI?
Answer: The Centre of Excellence in AI aims to advance AI-driven technologies and innovations in education, supported by a ₹500 crore allocation from the government.
Q2. How much funding does the IndiaAI Mission receive in 2026?
Answer: The IndiaAI Mission's funding has increased to ₹2,000 crore for FY26, which will help establish AI labs and curation units across the country.
Q3. What are AI curation units designed to do?
Answer: AI curation units will curate datasets for AI innovation and promote collaboration between the Centre and state governments.
Q4. What initiatives support private-sector research in the budget?
Answer: The budget allocates ₹20,000 crore for private-sector research, including a Deep Tech Fund of Funds to support startups.
Q5. How will the government improve digital infrastructure?
Answer: The government plans to establish the Data Protection Board of India and expand DigiLocker by adding millions of documents by FY26.
Question 1: What is the allocation for the Centre of Excellence in AI for 2026?
A) ₹200 crore
B) ₹500 crore
C) ₹1,000 crore
D) ₹2,000 crore
Correct Answer: B
Question 2: How much funding does the IndiaAI Mission receive in the 2026 budget?
A) ₹173 crore
B) ₹500 crore
C) ₹2,000 crore
D) ₹5,000 crore
Correct Answer: C
Question 3: What is the focus area for MeitY's budget in FY26?
A) AI education
B) Semiconductor manufacturing
C) Rural development
D) Space technology
Correct Answer: B
Question 4: What is the new basic customs duty on certain electronic components?
A) 20%
B) 15%
C) 10%
D) 5%
Correct Answer: C
Question 5: How many deep-tech startups will be financed through the IndiaAI Mission?
A) 10
B) 15
C) 25
D) 50
Correct Answer: C
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