Finance Minister Nirmala Sitharaman has announced significant investments in Artificial Intelligence (AI) as part of the 2026-27 budget. She proclaimed AI as a 'force multiplier' for enhanced governance, with a vision to craft an inclusive ecosystem that benefits farmers, students, healthcare workers, and individuals with disabilities. This mission will focus on computing infrastructure, datasets, and talent development. The government has proposed the 'Bharat-VISTAAR' platform for agriculture and AI-powered tools for the differently-abled. Furthermore, a substantial tax holiday for foreign cloud companies establishing data centers in India has been declared until 2047.
Strengthening India AI Mission
The government pledges robust support to AI and machine learning, quantum computing, and semiconductor and chip design through the National Research Fund and other R&D innovation funds. The budget allocates a substantial ₹1,000 crores to the India AI Mission, marking it as one of the key provisions under the emerging technology agenda.
Launch of India Semiconductor Mission (ISM) 2.0
The government has initiated the second phase of the 'India Semiconductor Mission' (ISM 2.0) aimed at indigenous equipment and material manufacturing alongside developing its own chip design intellectual property (IP). Special skilling programs in higher education and technical institutes will be introduced to prepare a skilled workforce in the AI domain. A committee of experts will assess the impact of emerging technologies like AI on employment and skill demands.
AI in Agriculture
A new multilingual AI platform, Bharat-VISTAAR, will be launched to integrate AgriStack portals and ICAR's agricultural practices with AI systems. This initiative will aid farmers with personalized advice, crop planning, weather alerts, pest management, and market insights, thus boosting productivity and minimizing risks.
AI in Healthcare
In the healthcare sector, the government will emphasize AI-powered assistive devices under the 'Divyang Sahara Yojana'. Financial support will be granted to 'ALIMCO' for adopting research and AI innovations, ensuring that eligible beneficiaries receive high-quality devices timely.
AI Surveillance in Data Centers and Ports
In a bid to establish India as a global service leader, the government is attracting foreign cloud companies. Those setting up data centers in India will enjoy tax exemptions up to 2047.The Finance Minister also highlighted plans to bolster the security of major national ports using AI. An extension of AI-based non-intrusive scanning systems will facilitate precise checking of every container in the future, significantly enhancing risk assessments.
