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

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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.

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Read the budget reactions in detail:

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.

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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.

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Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

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