Union Budget 2025: India’s AI Budget Allocation Stirs Mixed Reactions

PUBLISHED:

See more TechGraph stories in your search results.
Google Add TechGraph on Google

India’s Finance Minister Nirmala Sitharaman’s announcement of a ₹500 crore fund for a Centre of Excellence (CoE) on AI in education has drawn mixed reactions from the AI community. While the government’s focus on AI research and digital infrastructure is considered a step forward, industry leaders emphasize the need for concrete steps towards upskilling talent and driving AI adoption in startups.

Read the budget reactions in detail:

- Advertisement -

Prasad Shejale, Founder and Chief Executive Officer, LS Digital

The Union Budget’s forward-looking approach to Artificial Intelligence, with the establishment of a Center of Excellence (CoE) for AI, aligns with India’s vision of becoming a global digital powerhouse. At LS Digital, we believe AI is not just a tool but a transformative force driving Digital Business Transformation (DBT). With AI at the helm, we are leveraging its capabilities across research, prediction, and generation to unlock new possibilities for businesses, enhance decision-making, and drive intelligent automation.

The push for AI-led innovation, coupled with initiatives to streamline global operations and taxation frameworks, will accelerate enterprise adoption of digital technologies, making India a key hub for advanced AI-driven solutions. As businesses embrace AI to optimize efficiency and fuel innovation, LS Digital remains committed to pioneering cutting-edge solutions that shape the future of digital transformation.

Pankaj Jha, Managing Director, MAXHUB India

The government’s decision to allocate ₹500 crore for setting up a Centre of Excellence on AI in the education sector marks a significant step towards leveraging technology to transform learning.

At MAXHUB, we welcome this forward-looking move, as it resonates with our mission to enhance educational experiences through AI-powered interactive panels.

This initiative underscores the potential of technology to create immersive and future-ready classrooms, and we remain committed to driving innovation in this space to support the evolving needs of educators and students.

Rahul Bajaj, Founder & CEO, Digital Darwin

As we look ahead to 2025, the Union Budget’s focus on digital transformation, AI innovation, and healthcare infrastructure is a welcomed milestone for the growth of tech-driven businesses like Digital Darwin.

The government’s initiatives to strengthen the AI ecosystem and enhance healthcare accessibility through digital solutions will provide an unparalleled opportunity for companies at the intersection of sports, healthcare, and technology.

The allocation of funds towards AI research, adoption of digital public infrastructure, and upskilling of talent will empower startups like ours to scale further, innovate, and create solutions that address real-world challenges.

Digital Darwin is excited to contribute to India’s vision of becoming a global leader in AI-driven industries, and we look forward to collaborating with the government to drive forward these transformative initiatives.

Stay ahead of the curve, every day.

A daily briefing covering news, interviews, and the trends driving the world forward. Curated for readers who want news, not noise.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

Top Gainers · Global

View all
NamePriceChange
BNSScotiabank C$129.52 +32,313.48%
SHOPShopify C$239.71 +34.56%
TECHMTech Mahindra ₹1,790.00 +8.48%
WIPROWipro ₹184.40 +5.95%
TCSTata Consultancy Services ₹2,465.00 +4.89%

Latest Stories

The best CRM for a small business with a remote sales team is the one that answers at 11 p.m.

Every month, 18,100 people in the US search for...

NumanCap Review 2026 | Markets, Margin and Mobile

Not long ago, trading meant calling a broker, paying...

The Rise of Retail Spaces in India’s Emerging Cities

Organized retail in India remained more or less restricted...

The Death of India’s Unicorn Obsession

As funding becomes more selective and M&A and secondary buyouts gain ground, India’s startup ecosystem is beginning to rethink what success looks like beyond the billion-dollar unicorn valuation.

How vertical SaaS can modernise India’s laundry and garment-care industry

Ask anyone in an Indian city how they get...

Related Articles

The best CRM for a small business with a remote sales team is the one that answers at 11 p.m.

Every month, 18,100 people in the US search for “best CRM for small businesses with remote sales teams” (Semrush, October 2026). The phrase is...

NumanCap Review 2026 | Markets, Margin and Mobile

Not long ago, trading meant calling a broker, paying a hefty commission, and waiting for a confirmation in the mail. Today you can open a position on oil, gold, the S&P 500, or Bitcoin from a laptop in a few clicks, or from your...

The Rise of Retail Spaces in India’s Emerging Cities

Organized retail in India remained more or less restricted to a select few metro...

The Death of India’s Unicorn Obsession

As funding becomes more selective and M&A and secondary buyouts gain ground, India’s startup ecosystem is beginning to rethink what success looks like beyond the billion-dollar unicorn valuation.

How to Set a WordPress Maintenance Budget Without Guessing

Build a practical WordPress care budget by separating recurring support, renewals, planned improvements and work that needs a separate decision.

From Alerts to Answers: How AI Is Rewriting Fraud Detection in Financial Services

Every bank, credit union, and payments company runs on a quiet paradox. The systems...

5 Best Gift Card Management Software Platforms for Growing Brands

Gift cards have quietly become one of the most valuable tools in a brand’s...

Who Needs to Comply With NIS2? A Sector-by-Sector Guide

Understand who NIS2 applies to, how Essential and Important Entities are classified, and what organisations need to do to strengthen cybersecurity compliance and operational resilience.

Scalefusion Launches Veltar Vulnerability Management for Endpoint Security

Veltar Vulnerability Management connects vulnerability detection with Scalefusion UEM, allowing security and IT teams to assess endpoint risks and move towards remediation within the same workflow.

Who Needs to Comply With NIS2? A Sector-by-Sector Guide

Understand who NIS2 applies to, how Essential and Important Entities are classified, and what organisations need to do to strengthen cybersecurity compliance and operational resilience.

Scalefusion Launches Veltar Vulnerability Management for Endpoint Security

Veltar Vulnerability Management connects vulnerability detection with Scalefusion UEM, allowing security and IT teams to assess endpoint risks and move towards remediation within the same workflow.

Where Driver Dollars Are Really Going

Owning a motor vehicle involves a wide variety of ongoing costs that go far...

How is the extensive use of AI causing cyber threats?

At times, when artificial intelligence is involved in routine procedures without even being noticed,...

What Will Happen to Your Home After a Divorce?

Divorce can affect nearly every part of a person’s life, including where they live...

How vertical SaaS can modernise India’s laundry and garment-care industry

Ask anyone in an Indian city how they get their clothes cleaned, and you'll probably hear the same story. A neighbourhood press-wallah who's been...

Where Driver Dollars Are Really Going

Owning a motor vehicle involves a wide variety of ongoing costs that go far...

How is the extensive use of AI causing cyber threats?

At times, when artificial intelligence is involved in routine procedures without even being noticed,...

Meta COO Javier Olivan Reports $3.3 Million Share Sale

Meta Platforms Inc. () COO Javier Olivan has sold 5,354 shares of the company's...

Meta COO Javier Olivan Reports $3.3 Million Share Sale

Meta Platforms Inc. () COO Javier Olivan has sold 5,354 shares of the company's...

Why AI Adoption Fails in Enterprises; and What Leaders Can Do Differently

Artificial Intelligence has become a boardroom priority. Organisations across industries are investing in AI...

Nebius Acquires AI Inference Startup Inferize

Inferize will join Nebius Token Factory, bringing technology designed to reduce model loading times and idle GPU capacity as Nebius expands its production AI inference capabilities.

What Does India’s First Tokenised Bond Pilot Mean for the Debt Market?

India has successfully completed its first tokenised bond issuances, marking a major step for Demat 2.0. While the pilot proves tokenised bonds can operate within the existing financial system, the next challenge is whether the technology can improve liquidity, trading and broader participation in the debt market.