Budget 2026: IndiaAI mission gets ₹1,000cr allocation
What's the story
In the Union Budget 2026, Finance Minister Nirmala Sitharaman announced a ₹1,000 crore allocation for the IndiaAI Mission. The budget is aimed at enhancing India's capabilities in artificial intelligence (AI) and establishing the country as a global leader in this field. The latest allocation is less than last year's proposed outlay of ₹2,000 crore but higher than the revised estimates of ₹800 crore.
Strategic initiative
IndiaAI Mission and AI governance framework
The IndiaAI Mission is India's flagship initiative to establish itself as a global leader in AI. The latest budget allocation comes months after India launched its first-ever AI governance framework in November 2025. This strategic move aligns with similar efforts by the US and China, highlighting the global race for AI dominance.
AI significance
Economic survey's concerns on AI power concentration
The Economic Survey released on January 29, flagged concerns over the concentration of AI power. It warned that bridging this gap with public funding could be too expensive. The survey also highlighted the strategic importance of AI in business, defense, and national security. This underscores the need for a balanced approach to ensure equitable access to AI technologies while maintaining national security interests.
Budget history
Journey of AI funding in Union Budget
AI was first mentioned in a Union Budget speech in 2018, when then-Finance Minister Arun Jaitley had asked NITI Aayog to set up a national program for AI research and its applications. The major shift toward practical focus came in July 2024 with a dedicated budget under the IndiaAI mission and an allocation of ₹551.75 crore. Prior to that, all funding was integrated into larger technology budgets.