Union Budget 2025-26: Focus on AI Centre for Education and Deep Tech Funds for Next Generation Startups While the budget's central theme revolved around uplifting the poor, youth, farmers, and women
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Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, with a notable emphasis on strengthening India's technological capabilities. While the budget's central theme revolved around uplifting the poor, youth, farmers, and women.
AI and Deep Tech
One of the key announcements for emerging technologies was the establishment of a Centre of Excellence in Artificial Intelligence for education, with an allocation of INR 500 crore. This follows the creation of three similar centers in 2023, focused on agriculture, health, and sustainable cities. "I had announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now, a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of INR 500 crore," Sitharaman stated.
This move signals a shift from AI being a buzzword in boardrooms to becoming a tangible priority for the government. Pankit Desai, Co-founder & CEO of Sequretek, highlighted the significance of this shift, "This transition from AI being a mere boardroom discussion to becoming a central budgetary focus, complete with serious financial commitments, is groundbreaking."
The budget also proposed exploring a Deep Tech Fund of Funds to support startups working on advanced technologies such as AI, spatial computing, and immersive tech.
"A Deep Tech Fund of Funds will also be explored to catalyze the next generation startups," Sitharaman added.
Pulkit Ahuja, Founder & CEO of Proxgy, called it a "bold step towards innovation," adding that it would provide vital support to high-growth areas and help Indian startups compete globally.
To further fuel innovation, the government announced 10,000 fellowships over the next five years under the PM Research Fellowship Scheme. These fellowships, aimed at technological research in premier institutions like IITs and IISc, come with enhanced financial support.
Jaydeep Ruparelia, CEO of Infopercept, praised the move, saying, "Funding for startups, innovations, and artificial intelligence will boost the economy and growth, while also helping the cybersecurity ecosystem."
Ankush Tiwari, Founder and CEO of p-labs.ai, stressed the need for AI-driven cybersecurity investments. "With Deepseek in the spotlight, India must prioritize AI-driven cybersecurity in budget allocations. Relying on imported cybersecurity tools could pose a serious risk to national security," he warned.
Vishal Salvi, CEO of Quick Heal Technologies Ltd., echoed this sentiment, emphasizing the importance of secure digital ecosystems. "As India embraces AI-driven advancements, the importance of cybersecurity and data privacy becomes paramount. We are bound to witness an increase in cybersecurity spending to protect data and assets," he said.
