Finance Minister Nirmala Sitharaman on Saturday ( Feb 1) announced in the Union Budget 2025 that a new Centre of Excellence for Artificial Intelligence (AI) in education will be set up with an outlay of $ 57,671,997 (Rs 500 crore).
She recalled that three AI centres for agriculture, health, and sustainable cities were announced in 2023 and said this new centre will further strengthen AI-driven advancements in education.
“I had announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities in 2023. Now a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of Rs 500 crore,” Sitharaman said.
Impact of AI on the workforce
The Economic Survey 2024-25, released a day ahead of the Budget, raised concerns about the vulnerability of India's workforce to low-skill and low-value-added services due to AI advancements. It recommended establishing "stewarding institutions" that would function across sectors, stay updated on AI developments, and help transition workers to medium- and high-skilled jobs. These institutions would be responsible for ensuring public welfare while fostering innovation.
Support for domestic manufacturing
The government will also support domestic manufacturing capacity, identifying key sectors based on objective criteria. Sitharaman highlighted the vast opportunities in Industry 4.0, which require high skills and talent, making it crucial to equip the workforce accordingly.
National centres of excellence for skilling
The Union Budget also proposed setting up five National Centres of Excellence for Skilling. These centres will be developed with global partnerships to support Make for India and Make for the World manufacturing. The initiative will focus on curriculum design, training of trainers, a skill certification framework, and regular assessments to ensure industry-relevant expertise for youth.
(With inputs from agencies)