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Budget 2019: The Indian government is launching a national program for development of artificial intelligence

Budget 2019: The Indian government is launching a national program for development of artificial intelligence
Budget3 min read
  • India just announced a new national program for the development of artificial intelligence (AI) while presenting the Interim Budget 2019.
  • The program includes setting up an AI portal, an AI hub and centres of excellence .
  • The government has already identified nice priority areas that the AI program will hone in on.
‘Digital India’ has been a central part of the Indian government’s policies over the past five years. In the Interim Budget 2019, the Railways Minister Piyush Goyal announced that India will be setting up a new national program that will focus on artificial intelligence (AI).

The national program will include setting up a centre of AI, and that hub will be supported by centres of excellence. Nine priority areas have already been identified that the government will focus on through the AI program.

Goyal also announced that a National AI portal is in the works to ensure that the AI technology can reach all the people.


Importance of AI

The India is set to add $957 billion to the economy by 2035 according to a report by Accenture. The report adds that AI is critical to mobilising intelligent automation, empowering the existing workforce and driving innovation.

Annually, AI would be able to add 1.3% to the economy, according to Menon.


While most startups agree that this is a welcome move, Pankit Desai of Sequretek - a Mumbai based cyber security company - feels the key to the new mission's success will lie in its implementation.


Hopefully, the new importance given to the development of AI will increase the funding received by AI startups that has been considerably lower in India than in China and the US, despite the fact that the absolute number of startups dealing in AI has been increasing.

The government also plans to create 100,000 digital villages over the next five years, should they win the upcoming general elections in India.


In Budget 2018-19, Finance Minister Arun Jaitley had doubled the allocation to the Digital India program to ₹307 billion. This fund was supposed to boost the development of artificial intelligence, robotics, big data analysis, digital manufacturing etc, by setting up centres of excellences in the country.

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