India Boosts AI in Education: New Centre of Excellence and Expanded Infrastructure

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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.

India's Bold Move: AI Centre of Excellence for Education

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.

Building on Previous AI Initiatives

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.

Anticipated Impact on Education

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.

Expansion of IIT Infrastructure

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.

National Centres of Excellence for Skilling

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.

Additional Educational Initiatives

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.

Implications for India's AI Ecosystem

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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