Union Budget 2025: Government Allots ₹500 Crore for AI Centres of Excellence and to Expand IIT Infrastructure

Finance Minister Nirmala Sitharaman has announced the creation of three Centres of Excellence (CoEs) in Artificial Intelligence (AI) for education, with a budget of ₹500 crore. This initiative aims to boost AI research and its application in education. The announcement is part of the Union Budget 2025-26, which emphasises digital transformation and skill development.

The AI CoEs will collaborate with top educational institutions, research organisations, and private companies. Their goal is to develop AI models for educational purposes, such as personalised learning experiences and automated assessments. These centres will focus on advanced research and AI-enabled learning tools to prepare students with future-ready skills.

Infrastructure Expansion at IITs

In addition to the AI CoEs, the government plans to expand infrastructure at five IITs established after 2014. This expansion will provide more academic and hostel facilities for 6,500 additional students. The aim is to enhance India's capacity to nurture engineering and technology talent.

The five IITs expected to benefit from this expansion include IIT Bhilai, IIT Dharwad, IIT Goa, IIT Jammu, and IIT Tirupati. This move seeks to address the rising demand for seats in IITs and bolster India's status as a global education hub.

Vision for "Viksit Bharat" by 2047

This investment aligns with the government's vision of "Viksit Bharat" (Developed India) by 2047. Technology, AI, and education are seen as key drivers of economic growth and job creation. The focus on AI in education supports India's National AI Strategy, which aims to position the country as a leader in AI-driven innovation.

Sitharaman stated in Parliament that "Artificial Intelligence is revolutionising industries across the globe, and India must take the lead in AI research and applications." She added that these Centres of Excellence will be hubs for innovation and training in AI-driven solutions within the education sector.

Industry Reactions

Pranay Bhatia, Founder and Managing Partner at EFFIINEXT Advisory LLP, remarked on the allocation: "Allocation of ₹500 crore for setting up 3 centres of excellence for AI seems to be lower than what India really requires, especially considering amounts committed by other countries."

Sitharaman also mentioned exploring a Deep Tech fund of funds. This initiative reflects a commitment to fostering technological advancements across various sectors. By investing in both infrastructure and cutting-edge technology like AI, India aims to strengthen its educational ecosystem significantly.

Source