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In the 2025-26 Union Budget, Finance Minister Nirmala Sitharaman announced several initiatives to advance India’s position in the global technological landscape. One of the key highlights was the establishment of a Centre of Excellence for Artificial Intelligence (AI) in education, with an allocation of ₹500 crore. This new initiative builds on the government’s commitment to AI, following the announcement of three AI Centres of Excellence in agriculture, health, and sustainable cities in the 2023 Budget. The focus on AI in education aims to equip the Indian workforce with the necessary skills to thrive in an increasingly technology-driven world.
Sitharaman also unveiled plans for five National Centres of Excellence for Skilling, designed to provide youth with the industry-relevant skills necessary to succeed in sectors such as manufacturing and AI. These centres will be set up through global partnerships and will contribute to India’s vision of “Make for India, Make for the World.” The centres will focus on curriculum design, skill certifications, and regular assessments, addressing the need for a skilled workforce capable of handling Industry 4.0 demands.
These measures come in response to the growing concerns around AI displacing jobs, particularly in low-skill and low-value-added sectors. The Economic Survey 2024-25 highlighted the vulnerability of India’s workforce to AI and called for the creation of "stewarding institutions" that can help transition workers to higher-skilled roles. These institutions will monitor technological advancements and ensure that AI augments rather than replaces human efforts, balancing public welfare with innovation.
The government’s focus on AI and skill development aims to address both current and future challenges in India’s workforce, positioning the country to take advantage of technological opportunities while mitigating potential risks posed by automation.
Also Read: Key Takeaways from Union Budget 2025
