Finance Minister Nirmala Sitharaman presented the union budget for the fiscal year 2026/27 on Feb. 1, making some key announcements, including an STT hike for derivative trades, introduction of new High Speed Rail Corridors and push for rare earth production, among others.
Sitharaman also made some announcements around artificial intelligence, deep tech and semiconductors, outlining a vision fo technology as a primary driver for a ‘Viksit Bharat’. The budget prioritised artificial intelligence, semiconductors and DeepTech research as essential elements for industrial productivity.
Keeping that in mind, a central element to India’s AI strategy is the launch of Bharat-VISTAAR, a tool designed to revolutionise the agricultural sector through its multi-lingual abilities. The application will integrate AgriStack portals with the Indian Council of Agricultural Research (ICAR) package to provide customised advisory support to farmers.
Apart from agriculture, the government aims to integrate AI into healthcare services, including support for the Artificial Limbs Manufacturing Corporation (ALIMCO) to incorporate into the design and production of high-quality assistive devices for senior citizens and differently-abled persons.
Budget 2026 On Semiconductors & DeepTech
As far as semiconductors are concerned, Sitharaman doubled down on the India Semiconductor Mission 2.0, which will look to build on the previous mission. ISM 2.0 aims to establish domestic production of chip-making equipment and materials while designing full stack Indian IP. In order to capitalise on the sector’s growth, the outlay for the EMS scheme has been increased to Rs 40,000 crore.
The budget also has provisioning for DeepTech and research through the Anusandhan National Research Fund and the National Quantum Mission. In addition, the Central Public Sector Enterprises will set up digitally enabled “Hi-Tech Tool Rooms” at two locations. These facilities will serve as automated service bureaus for the high-precision design and manufacturing of components.
In order to prepare the workforce, Sitharaman proposed a high-powered committee on education and enterprise, which will assess the impact of AI on jobs and skill requirements to help India achieve a 10% share of the global services market by 2047.
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