Budget 2025: India’s AI Ambitions Set to Soar with Policy Boost
Published on 1/9/2025 | 4 min read
Published on 1/9/2025 | 4 min read
The Union Budget for 2025-26 is poised to position India as a global hub for artificial intelligence (AI), with a comprehensive policy package aimed at fostering the growth of the AI ecosystem. The measures are expected to encompass the establishment of AI centers, special skilling schemes, and strategies for harnessing AI’s potential across industries. These initiatives align with India’s vision of leveraging technology while ensuring a human-centric approach to mitigate job displacement concerns.
The Budget will likely unveil several initiatives to accelerate AI adoption:
In the lead-up to the Budget, Prime Minister Narendra Modi engaged with global tech leaders, including Microsoft CEO Satya Nadella, Vianai Systems founder Vishal Sikka, and Perplexity AI CEO Aravind Srinivas. These discussions revolved around AI’s transformative potential, innovation, and creating opportunities for India’s youth.
During a January 4 meeting with Sikka, Modi reiterated India’s commitment to spearheading AI innovation while maintaining a human-centric development model. Similarly, in a meeting with Nadella, Modi lauded Microsoft’s ambitious plans to train 10 million individuals in AI skills in India by 2030.
In September 2024, the Cabinet approved the ‘India AI Mission’ with a significant outlay of ₹10,300 crore. The mission focuses on:
This mission underlines India’s intent to lead globally in AI by fostering innovation and creating jobs.
As AI adoption grows, the demand for skilled talent in India is expected to surge. A Deloitte India and Nasscom report estimates that the demand for AI professionals will rise to 1.25 million by 2027, up from the current 600,000-650,000. The AI market is projected to grow by 25-35% annually, underscoring the need for significant upskilling efforts to bridge the talent gap.
Microsoft’s announcement to train 10 million Indians in AI skills by 2030 is a critical step in addressing this challenge, ensuring the country’s workforce is future-ready.
AI is transforming industries by streamlining business processes, enhancing production, and reshaping supply chains. However, the technology also poses challenges, including potential job displacement due to automation.
The government’s focus on human-centric AI development aims to strike a balance, ensuring that the benefits of AI adoption are inclusive. Skilling initiatives and reskilling programs will be central to this effort, enabling workers to adapt to the changing industry dynamics and embrace AI-powered entrepreneurship.
Industry leaders are playing a pivotal role in India’s AI journey. During a December 28 meeting, Perplexity AI’s Srinivas discussed the vast potential of AI adoption in India. Reliance Industries has also announced plans to build AI infrastructure in Jamnagar within 24 months, further solidifying India’s technological aspirations.
Microsoft’s Nadella has emphasized the importance of balancing AI ambition with investment, urging India to adopt a strategic approach to harness AI’s full potential.
India’s AI strategy, as outlined in Budget 2025, will be a defining moment for the country’s technological future. By prioritizing innovation, fostering talent, and ensuring human-centric development, India is poised to become a global leader in AI.
The policy roadmap is expected to address:
Budget 2025 underscores India’s determination to lead the global AI revolution. With a focus on innovation, talent development, and inclusivity, the government’s AI initiatives aim to harness technology’s potential while addressing societal challenges. As India steps into this transformative era, the emphasis on human-centric AI development ensures a future where technology and humanity coexist harmoniously.