On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26, highlighting important initiatives for the technology sector. The budget focuses on enhancing artificial intelligence (AI), boosting startups, and improving broadband connectivity in rural areas.
Key Highlights of the Union Budget 2025-26
- Centre of Excellence in AI for Education:
The government will set up a new Centre of Excellence for AI in education with an allocation of ₹500 crore. This initiative aims to integrate AI into educational systems, following previous announcements for AI in agriculture and health. - Deep Tech Fund of Funds:
To support the next generation of startups, the government plans to explore a Deep Tech Fund of Funds. This fund will help startups working on advanced technologies like AI and robotics. Additionally, an extra ₹10,000 crore will be added to the existing Fund of Funds for Startups. - National Nuclear Energy Mission:
The budget includes a commitment to generate 100 GW of nuclear energy by 2047. A research unit focusing on Small Modular Reactors (SMRs) will receive ₹20,000 crore, aiming to make nuclear energy more accessible and efficient. - Broadband Connectivity Expansion:
Under the Bharatnet project, broadband connectivity will be extended to all government-run secondary schools and primary health centers in rural areas. This initiative is crucial for improving digital access in remote regions. - Support for Domestic Manufacturing:
The budget proposes full exemption from Basic Customs Duty on critical minerals essential for manufacturing, promoting local production and job creation. - National Centres of Excellence for Skilling:
Five National Centres of Excellence will be established to provide youth with skills relevant to the industry, ensuring they are equipped for future job markets.
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These initiatives reflect the government’s commitment to strengthening India’s technology sector and fostering innovation. With a focus on education, energy, and startup support, the Union Budget 2025-26 aims to position India as a leader in technology and digital transformation. This budget marks a significant step towards building a robust technological infrastructure that can drive economic growth and enhance quality of life across the nation.