Union Budget 2026: AI and Deep Tech Set for Major Push
Finance Minister Nirmala Sitharaman could unveil a significant boost for artificial intelligence and deep technologies in the upcoming Union Budget. The government plans to roll out a mix of announcements and increased funding across various ministries rather than a single headline initiative.
Multi-Ministry Coordination for AI Growth
The finance ministry is leading efforts to set policy directions and funding priorities for AI in collaboration with several key ministries. These include electronics and IT, education, defence, science and technology, along with the departments of space and telecommunications.
This broad involvement reflects the government's view that AI will impact multiple sectors. It spans industry, research, national security, space, and digital infrastructure.
Focus on Long-Term Strategic Initiatives
Officials indicate that the budget will emphasize long-term initiatives rather than quick fixes. The goal is to fundamentally change India's growth trajectory over the coming years.
Apart from AI, the budget may also focus on robotics, deep-tech research, advanced innovation ecosystems, quantum computing, and safeguards against deepfakes. These technologies are positioned as central to India's growth strategy.
R&D Funding and Economic Impact
The government views AI not as a standalone industry but as a tool to enhance broad-based productivity and growth. This priority will manifest in elevated research and development funding and targeted programme support.
Key to this approach is India's Research, Development and Innovation Fund. It has an outlay of ₹1 trillion over six years until fiscal year 2031. For FY26, the government has already set aside ₹20,000 crore as the initial tranche.
Allocations under the RDI framework may rise sharply in FY27. Strategic areas like space technologies, space exploration, and space-based surveillance capabilities will receive growing focus. Quantum technologies are also set to feature prominently in the long-term roadmap.
Previous Allocations and Future Plans
The FY26 budget allocated ₹2,000 crore for the IndiaAI Mission. It also provided ₹500 crore for a new AI Centre of Excellence, five National Centres of Excellence for skilling, 80 IndiaAI Labs, and 20 AI curation units. A 'Deep Tech Fund of Funds' was established to support next-generation startups.
The Centre has approved a National Quantum Mission with a ₹6,003 crore outlay from 2023-24 to 2030-31. Such targeted interventions are likely to expand as part of a broader AI-led growth strategy.
Applications will span manufacturing, agriculture, healthcare, logistics, and governance. The emphasis is on building self-sustaining, revenue-generating AI platforms that reduce long-term fiscal dependence while supporting economic growth.
Expert Opinions and Strategic Importance
Experts highlight the need for clarity and sustained support. Sanjay Kuanar from Birla Global University notes that India can close gaps with China in AI and robotics within five to seven years through ecosystem building and international collaborations.
He emphasizes prioritizing skilling, ethical AI frameworks, and quantum-AI integration. Strategic focus on data centres and energy-efficient architecture will position India for rapid scaling.
Amit Singh from Jawaharlal Nehru University stresses that sustained budgetary support for AI and deep tech is essential for strategic autonomy. It reduces dependence on Chinese technology inputs and secures advantages in defence, space, and critical infrastructure.
Policy and Regulatory Developments
The government has taken early steps to shape the regulatory environment for AI. The Department for Promotion of Industry and Internal Trade released a working paper on generative AI and copyright. It explores balancing innovation and creators' rights.
The paper proposes a framework where AI developers could use lawfully accessed content for training through a centralized royalty mechanism. This signals an effort to create a clear and innovation-friendly policy ecosystem.
Conclusion: A Vision for Global Leadership
Positioning AI and deep technologies at the centre of economic planning is critical for India. Backed by higher and sustained R&D funding, it aims to build global-scale capabilities rather than remain a consumer of imported technologies.
The focus on multi-ministerial coordination shows the government recognizes that AI-led growth will cut across sectors. From industry and education to defence and space, this budget could set the stage for India's technological ascent.
