Budget 2026: High-powered committee to boosy services sector, AI push
What's the story
Finance Minister Nirmala Sitharaman has announced the formation of a high-powered committee to recommend measures focused on the services sector. The announcement was made during her budget speech on February 1. The move is seen as a major step toward bolstering India's artificial intelligence (AI) ambitions, especially ahead of the upcoming India AI Impact Summit scheduled for later this month.
Strategic initiative
Aim to make India a global leader in services
Sitharaman said, "I propose to set a high-powered education to employment and enterprise innovation standing committee to recommend measures that focus on the services sector." The Finance Minister also emphasized that this initiative is aimed at making India a global leader in services with a 10% share by 2047. This strategic move is part of the government's broader vision for India's future role in the global economy.
Tech impact
Cutting-edge technologies like AI can act as growth multipliers
While addressing Parliament, Sitharaman stressed that cutting-edge technologies like AI can act as growth multipliers. She noted that these new technologies are improving production but also significantly increasing the demand for water and energy. This observation highlights the dual-edged nature of technological advancements in today's world, where progress comes with its own set of challenges.
Past efforts
Centre's budget last year unveiled several initiatives for AI ecosystem
The announcement of the high-powered committee comes after the Centre's budget last year unveiled several initiatives aimed at the AI ecosystem. These included establishing a Centre of Excellence on AI in education. Beyond budgetary measures, the government has also been working on different layers of the AI ecosystem such as developing models and making computing accessible for start-ups and researchers.
Investment surge
India has attracted $70 billion in AI investments
Recently, IT Minister Ashwini Vaishnaw revealed that India has already attracted $70 billion in AI investments. He also predicted that this figure would double by the end of the India AI Impact Summit, which is scheduled to take place from February 16-20. This prediction underscores India's growing prominence as a global hub for artificial intelligence innovation and investment.