Union Budget 2025-26: All AI schemes receive huge increase in allocations, as well as new Centre of Excellence

The IndiaAI mission got the highest increase in allocation

Finance Minister Nirmala Sitharaman presented the Union Budget for 2025, unveiling the eighteenth Cabinet’s plans for funding the integration of Artificial Intelligence (AI) in various fields. Allocations for all schemes related to AI have seen significant increases since the previous Union Budget.

In her 8th Budget presentation speech, the Finance Minister stated that the government will be setting up a new Centre of Excellence (CoE) in AI in the education sector, with a capital outlay of ₹500 crore. This will be in addition to the three previously approved Centres.

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Table 1 shows the budgetary allocations to various AI-related schemes from FY23 to FY26. While some schemes focus specifically on advancing AI, others are broader initiatives that include AI as one component. Values in ₹ crore.

The highest increase in allocation went to the IndiaAI mission which was launched in April 2024 under the Ministry of Electronics and Information Technology. It aims to bring AI to critical sectors of the economy such as agriculture and healthcare. Under this mission, the government allows start-ups and researchers to access subsidised graphic processing units (GPU), in hopes of building a homegrown AI model.

The Finance Ministry has allocated ₹2000 crore to this mission for FY26. This is a whopping increase 1056% from the revised estimates in the 2024-25 budget, where ₹173 crore is allotted.

The Centres of Excellence in AI aim to explore opportunities for AI application in governance. The Centres have been allotted ₹200 crore, an increase of 82% from the revised 2024-25 estimate of ₹110 crore.

This scheme was recently launched for conducting interdisciplinary research, developing cutting-edge applications and scalable problem solutions in the areas of agriculture, health. and sustainable cities with a view to help realize the vision of ‘Make Al in India and Make Al work for India

Other programmes in which AI is part of the scheme include the National Mission on Interdisciplinary Cyber Physical Systems (NM-ICPS), which identifies technological needs of various ministries, and R and D in IT/Electronics/CCBT, which employs technology in research and development efforts.

The Finance Ministry has allocated a total of ₹4,349.75 crore in the FY26 Union Budget to schemes which directly or indirectly involve AI.