Budget 2025: Govt Announces Rs 500 Crore AI Centre Of Excellence For Education

The Union Budget 2025-2026 has allocated Rs 500 crore for a new Centre of Excellence in AI for education to foster innovation and skill development.

New Delhi: Finance Minister Nirmala Sitharaman on Saturday announced the establishment of a new Centre of Excellence (CoE) in Artificial Intelligence (AI) for education with a budget allocation of Rs 500 crore.

The initiative is part of the Union Budget 2025-2026, which lays special emphasis on digital transformation, skill development, and AI-driven innovation in academia. The new CoE in AI for education is aimed at fostering AI research and enhancing its application in the education sector.

“Artificial Intelligence is revolutionising industries across the globe, and India must take the lead in AI research and applications. The proposed Centres of Excellence will serve as hubs for innovation, training, and deployment of AI-driven solutions in the education sector," Sitharaman said in her speech.

The new CoE in AI for education is an extension to the three Centres of Excellence in AI for agriculture, health, and sustainable cities announced by the government in the last budget. It will collaborate with top educational institutions, research organisations, and private companies to create AI models specifically designed for educational purposes. These models will include personalised learning experiences, automated assessments, and AI-powered tutoring systems.

Dipesh Kaura, Country Director - India & SAARC, Securonix, applauded the government's "strategic approach to AI development", and urged a continued emphasis on cybersecurity.

"The emphasis on AI in this year's Union Budget is a forward-thinking move. As we accelerate AI adoption across sectors, it's imperative we also prioritise cybersecurity to safeguard our digital advancements," Kaura said.

"The proposed initiatives to integrate AI in education with a total overlay of Rs 500 crore for CoE are a significant step towards future-proofing our workforce. However, it's equally crucial to embed cybersecurity awareness and skills development within these programs, ensuring our next-gen professionals are equipped to navigate the complexities of secure AI implementation," he added.

The government will also set up five National Centres of Excellence for Skilling to equip youth with industry-relevant expertise, Sitharaman informed, adding that the partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews.

The Finance Minister also announced plans to explore a Deep Tech fund of funds to catalyse the next generation of startups. Notably, Deep Tech is an investment category focused on advanced technologies, such as AI, robotics, blockchain, advanced material science, photonics and electronics, biotech, and quantum computing. These innovations have the potential to create new industries and hence offer substantial investment opportunities.