Government Allocates Rs 500 Crore for AI in Education in Union Budget 2025

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 of Rs 500 crore. The initiative is part of the Union Budget 2025-26, which focuses on digital transformation, skill development, and AI-driven innovation in the education sector.

AI in Education

The new CoE in AI for education will focus on AI research and its application in learning. The government aims to use AI to develop personalised learning models, automated assessments, and AI-powered tutoring systems. The centre will collaborate with top educational institutions, research organisations, and private companies to create AI solutions tailored for education.

Sitharaman emphasised the importance of AI, stating, "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."

Expansion of AI Research in India

This initiative builds on the three Centres of Excellence in AI for agriculture, health, and sustainable cities, which were announced in the previous budget. The government’s focus is on expanding AI applications in key sectors to drive technological advancements and skill development.

Skilling and Deep Tech Investments

In addition to AI in education, the government will set up five National Centres of Excellence for Skilling. These centres will work on curriculum design, training of trainers, a skills certification framework, and regular assessments.

Sitharaman also announced plans to explore a Deep Tech fund of funds to support emerging startups. Deep Tech includes AI, robotics, blockchain, biotech, and quantum computing, which have the potential to drive new industries and economic growth.