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India’s Union Budget 2026 was completely focused towards technology. Finance Minister Nirmala Sitharaman mentioned Artificial Intelligence (AI) a record 11 times in her address, the most in any budget speech. It is clear that the government is now considering AI not just as a technological trend, but as an important component of national economic and social development.
The government has announced that in the coming times, AI will be used on a large scale in governance and government services. This will be adopted as “ForceMultiplier”, which will improve the speed and quality of work. Implementation of the schemes will be rapid, so that the benefits reach the citizens without any delay.
Under the budget, it was also proposed that knowledge of AI would be given to children at the school level. AI- courses will be added to the national curriculum, and teachers will also be given training in this regard. This will make the new generation more technically capable. AI platforms will provide employment and training opportunities to youth, enabling them to adapt to changing job and skill requirements.
The use of AI will not be limited to the IT sector only. AgriStack portal and ICAR package will be used to present modern information in agriculture. AI based assistive devices will be developed for disabled persons in the health sector. Organizations like ALIMCO are working on these products, the benefits of which will improve the quality of life in both rural and urban areas.
AI based risk assessment systems will be developed in municipal corporations and security departments. Advanced scanning and imaging technology will make testing processes even faster. Additionally, a multilingual AI tool called Bharat-VISTAAR has been introduced, which will simplify access to services in different languages.
The government has announced significant tax incentives to strengthen digital infrastructure. Foreign companies will be given tax holidays till 2047 if they offer cloud services by providing data center services in India. Google has already announced a $15 billion AI based data center investment in Visakhapatnam. Along with this, a budget of Rs 40,000 crore has been set for the semiconductor sector, so that India can become self-reliant in chip manufacturing.
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