In a bid to strengthen India’s technological and educational ecosystem, Finance Minister Nirmala Sitharaman has announced the establishment of three Centres of Excellence (CoEs) in Artificial Intelligence (AI) for education with a budget allocation of ₹500 crore. The initiative is aimed at fostering cutting-edge AI research and enhancing its application in the education sector.
The move comes as part of the Union Budget 2025-26, which lays special emphasis on digital transformation, skill development, and AI-driven innovation in academia. These AI Centres of Excellence will focus on advanced research, AI-enabled learning tools, and industry-academia collaboration to equip students with future-ready skills.
Announcing the initiative in Parliament, Sitharaman said, “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.”
The centres will partner with premier educational institutions, research bodies, and private players to develop AI models tailored for educational applications, including personalised learning experiences, automated assessments, and AI-powered tutoring systems.
Sitharaman added that a Deep Tech fund of funds will be explored.
Bhaskar Majumdar, Managing Partner, Unicorn India Ventures commented, “Given that deeptech is being seen as an area for growth at the national level, with a China +1 macro and creation of the PLI/DLI schemes of the government, this is a great step. The Government has created this FoF for deeptech to enable funds to invest in deeptech and back highly innovative startups that can put India in a competitive global AI race. Hand in hand, in continuation of the R&D fund of last year, the Government has enhanced the same for enterprises to enable technology innovation. This shows that the Govt realises the future innovation is the heart of economic growth as the global wars are fought around AI and Semiconductors”
In addition to the AI CoEs, the government has also announced an infrastructure expansion in five IITs that were established post-2014. This expansion will create additional academic and hostel facilities to accommodate 6,500 more students, thereby enhancing India’s capacity to nurture top-tier engineering and technology talent.
The expansion is expected to address the growing demand for seats in IITs and strengthen India’s position as a global education hub. The five IITs that are likely to benefit include IIT Bhilai, IIT Dharwad, IIT Goa, IIT Jammu, and IIT Tirupati.
This investment aligns with the government’s vision of “Viksit Bharat” (Developed India) by 2047, wherein technology, AI, and education will play a pivotal role in economic growth and job creation. The focus on AI in education is also in line with India’s National AI Strategy, which aims to make the country a leader in AI-driven innovation.
Pranay Bhatia, Founder and Managing Partner, EFFIINEXT Advisory LLP commented, “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.”
