Budget to Boost India’s AI and Deeptech Growth Roadmap

Union Budget 2026–27 signals multi-sector push for AI, deeptech, and advanced innovation.

Written by: Supriya Kadu

Edited by: Rajan Mhatre

Last Updated: January 14, 2026

Summary: Union Budget readies long-term support plan for AI, robotics, quantum and deep tech sectors.

As India gears up for the 2026–27 Union Budget, government officials are quietly piecing together what could be one of the most forward-looking technology blueprints in recent memory. Rather than pitching a single flagship AI initiative, authorities are plotting a spread of measures across departments to anchor AI, deeptech and advanced innovation in the nation’s growth strategy.

People familiar with the discussions say the Finance Ministry, working with ministries including Electronics & IT, Education, Science & Technology, Defence and Space, wants to signal that AI and related technologies are not standalone sectors — they’re tools that can elevate productivity across industries and boost competitiveness.

The picture emerging ahead of the budget suggests a mix of higher research funding, targeted programme support, and coordinated planning, rather than a single bold headline. Officials involved in the process believe this spread will help India catch up with global technology leaders and unlock domestic potential in areas such as robotics, quantum computing, advanced manufacturing and even deepfake safeguards.

A core plank of this approach is strong backing for research and development. India already has the RDI Fund — a ₹1 trillion kitty set to run through fiscal 2031, with an initial ₹20,000 crore earmarked for 2025–26 under it — and insiders say allocations for next year could rise sharply in key tech domains.

In past budgets, schemes like the IndiaAI Mission and AI centres of excellence received significant support, including dedicated funds and institutional backing — moves that sector voices saw as laying the groundwork for deeper innovation.

Government planners believe that a more comprehensive set of policies is critical for long-term economic growth and competitiveness. One official described the strategy as “not about quick wins but building credible, scalable tech engines that propel productivity and exports.”

Several industry experts have welcomed this direction. They say that linking AI and deeptech funding to real economic outcomes — from healthcare to agriculture, logistics to education — could help India move beyond early experimentation into durable technology deployment.

As the budget date approaches, markets, startups and research institutions are all excited for the unknown. Many in the tech community anticipate that India's fiscal strategy would not just offer support but also provide tangible tools and resources to transform AI and deep technology from buzzwords to measurable economic drivers.