In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman placed artificial intelligence (AI) and other emerging technologies at the centre of India’s economic and governance strategy, calling AI a “force multiplier for better governance” and signalling a strong commitment to a full-stack, inclusive AI ecosystem. Her budget speech included repeated references to AI — more than in any previous Indian budget — underlining its importance across sectors such as agriculture, healthcare, education, and public services.
One of the headline initiatives is Bharat-VISTAAR, a multilingual AI platform designed to boost agricultural productivity by integrating the government’s Agri-Stack data and best practices from the Indian Council of Agricultural Research (ICAR), offering customised insights and advisory support to farmers in local languages. Experts say this tool could help farmers make better decisions on weather, pests, and crop management, potentially transforming agriculture through AI-driven intelligence.
The Budget also proposes strengthening AI research, talent development, and digital infrastructure. A high-powered standing committee will assess the impact of AI and other technologies on jobs and skills, recommending policy and skilling pathways to prepare India’s workforce for a technology-rich future. Reskilling and upskilling programmes are emphasised, alongside plans to support computing infrastructure, data ecosystems, and innovation via research funds and expanded semiconductor and chip-design missions.
Industry reactions highlight broad support for these measures, with particular focus on initiatives that nurture local AI, IT, and cloud ecosystems and encourage data-centre investments. Tax incentives, safe harbor rules for tech investment, and a push to grow India’s global services share reflect a broader strategy to position the country as a key global player in AI and related tech fields while ensuring that AI adoption fuels economic growth, governance efficiency, and inclusive development.
