Government Prioritizes AI and Tech Development in New Budget
The Indian government is prioritizing the enhancement of science and technology in its latest budget, particularly focusing on bolstering private sector involvement in artificial intelligence (AI) and deep-tech sectors. This strategic move aims to tap into the potential of emerging technologies and ensure that India remains at the forefront of global innovation.
On November 3, 2025, the government inaugurated the Research, Development and Innovation (RDI) Scheme, which features a substantial budget allocation of ₹1 lakh crore over the next six years. The initiative seeks to stimulate private investments in research and development across key sectors, including cutting-edge areas like quantum computing, robotics, AI applications in crucial fields such as agriculture, healthcare, and education, as well as biotechnology and the digital economy.
Operational Framework and Fund Management
The RDI Scheme will be managed through a Special Purpose Fund (SPF) operated by the Anusandhan National Research Foundation (ANRF). This structure includes a two-tier funding system where the SPF will oversee the fund’s corpus and allocate resources to Second-Level Fund Managers (SLFMs). Notably, the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) have been appointed as SLFMs and will begin accepting proposals from February 2026. This initiative supports technology development starting from Technology Readiness Level (TRL) 4 and is designed to empower start-ups and industry-led R&D entities.
National Mission and AI Initiatives
The Department of Science & Technology (DST) has also launched the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). This mission has established 25 Technology Innovation Hubs (TIHs) focusing on areas such as AI, robotics, the Internet of Things (IoT), and cybersecurity. A significant project under this mission is the Bharat-Gen initiative, which aims to develop diverse generative AI models that cater to India’s multilingual landscape.
Further enhancing the AI landscape is the IndiaAI Mission, approved by the Union Cabinet in March 2024, which allocates ₹10,371.92 crore over five years. This mission targets the establishment of a robust AI ecosystem through seven foundational pillars, including data access, innovation support, and trustworthy AI practices. Among its initiatives, BharatGen stands out, providing a multilingual support system for 22 Indian languages and promising to revolutionize public service delivery through enhanced digital trust.
Budget Breakdown and Future Plans
The government has outlined specific budget allocations for these initiatives. The NM-ICPS and RDI will receive substantial financial support, with allocations spread across multiple fiscal years. For instance, the NM-ICPS budget for the financial year 2024-25 is set at ₹815 crore, while the RDI Scheme is expected to allocate ₹20,000 crore in 2025-26 alone.
In addition to these ambitious projects, the government is establishing Centres of Excellence (CoEs) in AI, focusing on healthcare, agriculture, and sustainable urban development. These centers, located in prestigious institutions like the Indian Institutes of Technology (IITs), aim to drive innovation, foster collaboration, and develop scalable AI solutions for real-world applications.
With plans to expand AI education and training, the Ministry of Education is also contributing by integrating AI-centric programs into learning frameworks across states and union territories, thereby equipping the youth with skills required for tomorrow’s job market. This comprehensive strategy reflects the government’s commitment to creating an advanced AI ecosystem that benefits all sectors of society.
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