The 2025-26 Budget is likely to announce a set of policies to support the artificial intelligence (AI) ecosystem in the country, besides laying a road map for making the country an AI hub. The set of measures, according to sources, may include facilitation of AI centres, and special schemes for skilling, to make the best use of of the technology, which is transforming not only business processes, but also production and supply chains, and markets.
The policy package would, however, give priority to “human-centric technology development”, and guard against the potential of AI to hurt employment, the sources added.
In the run-up to the Budget, Prime Minister Narendra Modi has met stalwarts in the tech world, including Microsoft CEO Satya Nadella, Vianai Systems founder Vishal Sikka and Perplexity AI CEO Aravind Srinivas to discuss opportunities and human-centric approach to AI.
“The Budget may feature some announcement about AI centres and AI skilling based on India’s requirement and how AI can be deployed without affecting employment,” an official said.
Like in other parts of the world, there are concerns that AI may reshape the Indian job market by creating new opportunities while also posing challenges such as job displacement due to automation.
The road map in the Budget will likely stress the need to address the huge reskilling requirements, creation of new skills, change in industry dynamics and AI-powered entrepreneurship.
According to a report by Deloitte India and Nasscom, the demand for Indian AI talent is expected to jump to 1.25 million in 2027 from 600,000-650,000 now. It added that by 2027, the AI market is expected to grow at 25-35%, signalling a demand-supply gap in the talent pool and a need for upskilling existing talent. On Tuesday, Nadella said Microsoft will train 10 million people in AI skills in India by 2030.
In September 2024, the Cabinet approved the ‘India AI Mission’ with a Budget outlay of Rs 10,300 crore for building computing infrastructure, developing indigenous AI capabilities, attracting AI talent and financing AI startups.
In a meeting on January 4, Modi and Sikka discussed AI and its impact on India, and several imperatives for the time ahead. Modi said India is committed to taking the lead in AI, with a focus on innovation and creating opportunities for the youth.
India is striving for a better future through human-centric AI development to ensure that jobs are created, not lost.
In his meeting with Nadella, Modi appreciated Microsoft’s ambitious expansion and investment plans in India. “It was also wonderful discussing various aspects of tech, innovation and AI in our meeting,” he said.
On December 28, in a meeting with Modi, Perplexity’s Srinivas said they had a great conversation about the potential for AI adoption in India and across the world.
