Nirmala Sitharaman, the Finance Minister of India has announced to allocate Rs 500 crore for establishing Artificial Intelligence (AI) centres across the country as a part of the Union Budget 2025. This initiative aims to boost AI research, development and innovation, positioning India as a global leader in AI technology. The government plans to set up advanced AI hubs to support industries, startups, and educational institutions in leveraging AI for economic growth and digital transformation.
This follows Sitharaman’s 2023 budget announcement, where she proposed setting up three AI Centres of Excellence in top educational institutions. These centres aim to promote interdisciplinary research and drive the development of advanced AI applications across various sectors.
This year’s budget further includes major announcements across various sectors, with a special focus on Artificial Intelligence (AI) and education.
Rs 500 Crore allocated for AI centres
During her budget speech in Parliament, Sitharaman announced the establishment of five National Excellence Centres for skill development training. Additionally, the government will set up AI Centres of Excellence dedicated to AI education, with Rs 500 crore allocated for this initiative.
She recalled that in 2023, the government had introduced three AI Centres of Excellence focused on agriculture, healthcare, and sustainable cities. Now, in Budget 2025, a new AI Centre for Education will be established to further advance India's AI capabilities.
Expansion of IITs and Medical colleges
The Finance Minister emphasized the government’s commitment to inclusive growth and highlighted plans to increase the capacity of IITs and medical colleges. She noted that over the past 10 years, IIT capacity has doubled, reflecting India's growing emphasis on higher education and technological advancements.
With these measures, Budget 2025 aims to strengthen AI education, skill development, and higher education infrastructure, ensuring India remains at the forefront of technological progress.
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