The Union Budget tabled in the Parliament today showed that only 40% of the proposed outlay for IndiaAI Mission in FY26 was used. While the Centre set aside INR 2,000 Cr for the initiative for the ongoing fiscal year, revised Budget estimates showed that only INR 800 Cr was used. Meanwhile, finance minister Nirmala Sitharaman earmarked INR 1,000 Cr for the Centre’s flagship AI initiative for FY27. With an outlay of INR 10,372 Cr spanning five years, IndiaAI Mission was approved by the Union Cabinet in March 2024. The initiative aims to make India an AI hub, offer cutting-edge compute power to startups and research institutions, and create customised AI solutions for the country. Under the mission, the IT ministry has currently deployed more than 38,000 GPUs from companies like Hiranandani Group’s Yotta Data Services and NxtGen Cloud Technologies. Last year, the ministry also empanelled 11 startups and companies to build an indigenous foundational AI model. Notably, FM Sitharaman mentioned the word “AI” multiple times in her Budget 2026 speech, touting the technology’s potential as a force multiplier for better governance. “(The) twenty-first century is technology driven. Adoption of technology is for the benefit of all people… to access newer… Read MoreInc42 Media
