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On Sat, 1 Feb, 4:02 PM UTC
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Center of Excellence, Fund of Funds, nuclear energy: How Sitharaman said aye to AI in her Budget
Here's how some of the Budget proposals will boost the AI ecosystem in the country. In the Union Budget 2025-26, finance minister Nirmala Sitharaman made three key announcements that could power innovation and funding for the growing artificial intelligence (AI) ecosystem in India. The FM allocated INR500 crore for setting up a Center of Excellence in AI for education. Sitharaman also announced an additional INR10,000 crore for the government's Fund of Funds initiative, and a deep-tech fund to invest in startups, which experts
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Union Budget 2025: Centre of excellence for AI to be set up with Rs 500 crore outlay
Union Budget 2025: This initiative is expected to drive innovation in the education sector. In 2023, the government had announced the establishment of three centres of excellence in AI focused on agriculture, healthcare, and sustainability, aiming to advance research and practical AI applications in these sectors.The government will set up a centre of excellence in artificial intelligence (AI) for education with a total investment of Rs 500 crore, finance minister Nirmala Sitharaman announced on Saturday while presenting the Union Budget for 2025-26. This initiative is expected to drive innovation in the education sector. In 2023, the government had announced the establishment of three centres of excellence in AI focused on agriculture, healthcare, and sustainability, aiming to advance research and practical AI applications in these sectors. "The AI center of excellence for education is a strong signal for integrating AI for both the educators and learners. This will unlock learning and raise the quality of education thereby improving employability," said Jaideep Kewalramani, COO and head of employability business at TeamLease Edtech. This comes at a time when edtech startups are also betting big on AI. According to industry executives, AI is reshaping the edtech sector by driving personalised learning, adaptive assessments and automated content creation.
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Govt To Set Up 3 Excellence Centres In AI For Education
Additional infrastructure will be created in the five IIT started after 2014 to facilitate education for 6,500 more students FM Nirmala Sitharaman announced on Saturday (February 1) that three more centres of excellence (COE) in artificial intelligence for education will be set up with a total outlay of INR 500 Cr. Sitharaman said this while announcing the Union Budget 2025, her eighth consecutive budget in a row. "Additional infrastructure will be created in the five IITs started after 2014 to facilitate education for 6,500 more students. Hostels and other infrastructure capacity for IIT Patna will also be expanded," Sitharaman added.
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Govt Announces 4th AI Centre of Excellence for Education, Expansion in Skilling & IIT Infrastructure
Over the past decade, student intake at IITs has doubled from 65,000 to 1.35 lakh. In a major push for education and skill development, Finance Minister Nirmala Sitharaman announced the establishment of a Centre of Excellence in Artificial Intelligence for Education with a total outlay of INR 500 crore. This initiative builds on the three AI centres set up in 2023 for agriculture, healthcare, and sustainable cities. Sitharaman also revealed plans for five National Centres of Excellence for Skilling, designed to equip youth with industry-relevant expertise. "These centres will be set up with global partnerships to support Make for India, Make for the World manufacturing," Sitharaman stated. The initiative will cover curriculum design, training of trainers, a skill certification framework, and regular assessments. To strengthen higher education, the government is investing in the expansion of IIT infrastructure. Over the past decade, student intake at IITs has doubled from 65,000 to 1.35 lakh. Additional facilities will be developed at five IITs established post-2014, creating space for 6,500 more students. Hostel and other infrastructure capacity at IIT Patna will also be expanded. In a move to promote Indian languages in education, the Bharatiya Bhasha Pustak Scheme was announced. "This initiative will provide digital Indian language books for schools and higher education, helping students understand their subjects better in their own language," Sitharaman said. The government also reaffirmed its commitment to expanding medical education, with an additional 10,000 undergraduate and postgraduate medical seats to be added next year. Over the past decade, medical seats have increased by 130% to 1.1 lakh, with plans to add 75,000 more in the next five years. Additionally, cancer centres will be set up in all district hospitals. These initiatives reflect the government's continued focus on education, skilling, and healthcare, ensuring India remains at the forefront of global innovation and workforce development.
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India's 2025-26 Union Budget allocates INR 500 crore for an AI Centre of Excellence in Education, alongside investments in IIT infrastructure and skilling initiatives.
In a significant push towards integrating artificial intelligence (AI) into India's education sector, Finance Minister Nirmala Sitharaman announced the establishment of a Centre of Excellence for AI in Education during the Union Budget 2025-26 presentation. This initiative, backed by a substantial investment of INR 500 crore (approximately $60 million), marks a pivotal step in the country's commitment to leveraging AI for educational advancement 12.
This new centre builds upon the foundation laid in 2023 when the government established three AI centres of excellence focusing on agriculture, healthcare, and sustainability 2. The expansion into education underscores the government's recognition of AI's potential to revolutionize learning and teaching methodologies across the country.
Experts in the field have lauded this move, with Jaideep Kewalramani, COO of TeamLease Edtech, stating that the AI center of excellence for education "will unlock learning and raise the quality of education thereby improving employability" 2. This initiative is expected to drive innovation in personalized learning, adaptive assessments, and automated content creation, aligning with the current trends in the edtech sector 2.
Alongside the AI initiative, the government announced plans to expand infrastructure at Indian Institutes of Technology (IITs). Additional facilities will be developed at five IITs established after 2014, creating space for 6,500 more students 34. This expansion is part of a broader trend that has seen student intake at IITs double from 65,000 to 1.35 lakh over the past decade 4.
In a related move, Sitharaman revealed plans for five National Centres of Excellence for Skilling. These centres, designed with global partnerships, aim to equip youth with industry-relevant expertise, supporting the "Make for India, Make for the World" manufacturing initiative 4.
The budget also introduced the Bharatiya Bhasha Pustak Scheme, which will provide digital Indian language books for schools and higher education, enabling students to better understand subjects in their native languages 4. Furthermore, the government reaffirmed its commitment to expanding medical education, with plans to add 10,000 undergraduate and postgraduate medical seats next year 4.
These budget proposals are expected to significantly boost India's AI ecosystem. The allocation of INR 500 crore for the AI Centre of Excellence in Education, combined with an additional INR 10,000 crore for the government's Fund of Funds initiative and a deep-tech fund for startups, demonstrates a comprehensive approach to fostering AI innovation and funding 1.
As India positions itself at the forefront of global innovation and workforce development, these initiatives in AI, education, and skilling reflect the government's strategic focus on preparing the nation for a technology-driven future. The integration of AI in education, coupled with expanded infrastructure and skilling programs, sets the stage for a transformative era in Indian education and technology sectors.
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Analytics India Magazine
|Govt Announces 4th AI Centre of Excellence for Education, Expansion in Skilling & IIT Infrastructure
India's Economic Survey 2025 acknowledges AI's potential to replace jobs by 2025, emphasizing the need for workforce adaptation and increased private sector R&D investment. The government plans significant AI initiatives and infrastructure development to position India as a global AI leader.
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India's Finance Minister Nirmala Sitharaman emphasizes the country's leadership in AI adoption and governance, highlighting significant achievements and government initiatives in the field.
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India's Union Budget 2025-26 introduces significant measures to strengthen the country's AI and tech ecosystem, including a new Fund of Funds for startups, a national framework for Global Capability Centres, and investments in AI education and research.
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The Union Budget 2025 outlines a transformative agenda focusing on education, skilling, and AI to prepare India's workforce for future challenges and opportunities.
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India's government promotes local education in its latest budget, while Binance, the world's largest crypto exchange, makes strategic moves in the Indian market despite regulatory challenges.
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