Budget 2026: Emphasising AI and Emerging Technologies in India

Budget 2026 is scheduled for presentation by India’s Finance Minister Nirmala Sitharaman on Sunday, February 1, 2026. The upcoming announcement is poised to encompass vital budget allocations, fresh initiatives, and policy measures targeting the financial year 2026-27. This year, the primary emphasis is expected to be on technology to advance India’s Viksit Bharat vision.

With Artificial Intelligence (AI) significantly propelling stock market growth, there are heightened anticipations from investors, companies, and the tech sector regarding government support and initiatives. Consequently, the main themes surrounding this year’s budget are forecasted to centre on AI, Semiconductors, Data Centres, and Deep-Tech Startups. Here’s an insight into what may unfold in Budget 2026 from a technological standpoint.

How Budget 2026 Supports AI and Emerging Technologies

IndiaAI Mission

In Budget 2026, it is anticipated that Sitharaman will declare enhanced funding for the IndiaAI Mission. The government is likely to allocate resources to develop a data-centre-style system housing 18,000 to 30,000 GPUs, aimed at benefiting domestic startups. New national AI centres focusing on education and healthcare are also expected to be announced.

Electronics and Semiconductor Sector

A surge in electronics and semiconductor production in India is also on the horizon, with potential support for ongoing initiatives in fabrication and packaging. Additionally, duty waivers on essential minerals such as lithium and cobalt for machinery necessary for chip production could be announced. Lastly, there may be increased backing for the Design Linked Incentive (DLI) programme.

Artificial Intelligence and Data Centres

According to a report by MoneyControl, India aims to attract substantial global investment for its AI ecosystem. It quoted a senior government official stating that there exists a tremendous opportunity in India for investors. A notable instance of this was in 2025, when Google announced a $15 billion investment for its AI hub, which includes a data centre and fibre-optic network in Andhra Pradesh.