Budget 2025 FM Exclusive: 'AI Advancing Fast, Focus On Bridging Skill Gap,' Says Sitharaman
The Union Budget 2025 has provisioned for AI training centres that will host global specialists.
As the artificial intellegence race advances at an unprecedented pace, the challenge isn't just its impact on jobs—it's whether the workforce can keep up. Finance Minister Nirmala Sitharaman acknowledged this concern and stated that the government is proactively bridging the gap with targeted skilling initiatives.
"AI will undoubtedly reshape jobs, and training takes time. That's why we launched the PM Internship Scheme in July, giving individuals a year of exposure while industries adjust," Sitharaman told NDTV Profit in an exclusive interview.
India's push for AI comes at a time when the world has entered a race to develop the technology with China's DeepSeek taking on the likes of ChatGPT, OpenAI, Meta AI, Grok and more.
The Union Budget 2025 has provisioning for AI training centers that will host global specialists. "This is a major area of focus, crucial for India's demographic dividend and our economy," Sitharaman said.
AI In Budget 2025
In her eighth consecutive Budget speech, the FM announced the setting up of a Centre of Excellence in AI for education with an outlay of Rs 500 crore. The CoE will focus on innovation in the application of AI technologies in education.
The Budget covered areas such as vocational AI-led apprenticeships, national AI-based skill matching, and project-based assessments to fulfil AI-led industry demand.
The FM talked about creating AI-optimised, 100% renewable, ultra-low-cost energy, along with AI-driven supply chains, and quantum-encrypted logistics, AI-enabled fintech, and AI-native, no-code, high-margin consulting and digital enterprises.
Earlier, the Economic Survey 2025 has also highlighted the crucial need for boosting AI in India.
The survey said, "It will also require appropriate skilling and education for India’s youth to take advantage of technological advances such as Artificial Intelligence, enabling its population to stay one step ahead of technological developments. That would minimise or even eliminate the potential adverse impact on employment and, if possible, turn it into a force for augmenting employment. It would require a departure from ‘business as usual’ for collaboration between academic institutions and businesses."
