Union Budget 2026 announces a new panel to study AI’s impact on the services sector, jobs, skills, and growth.
Union Budget 2026 announces a new committee to assess AI’s impact on India’s services sector, jobs, skills, and long-term growth.
Union Budget 2026-27: The new committee will assess how emerging technologies and Artificial Intelligence (AI) impact India's service sector, according to Finance Minister Nirmala Sitharaman, who announced its creation during the Budget 2026-27 budget presentation. The government will establish new technology assessment methods, which will evaluate technological developments according to the Union Budget 2026-27 mandate.
Sitharaman explained during her Budget speech to Parliament that the proposed panel will identify priority areas to optimise growth potential in the services sector, assess the AI job impact, and develop workforce training methods. The initiative aligns with India’s long-term goal of achieving a 10 per cent share in global services exports by 2047.
The upcoming fiscal period will emphasise development activities through improved infrastructure and ecosystem creation in Budget 2026.
The newly established committee under Budget 2026-27 represents a significant change in policy direction, as it establishes. The research now investigates how AI affects services through its real-world applications, which impact employment, productivity, and global competitiveness. The panel will investigate skilling requirements which exist across all demographics, from farmers and gig workers to STEM professionals and women who work in technology fields.
FM Sitharaman explained that the Union Budget 2026 demonstrates the government's selection of "reforms over rhetoric", which demonstrates India's dedication to achieving Viksit Bharat. This marks her ninth Budget presentation, which brings her closer to the record of former Prime Minister Morarji Desai, who presented ten Budgets.
The Finance Minister declared that capital expenditure will increase by 9 percent which will result in the new funding for 2026-27 reaching ₹12.2 lakh crore. The capex expansion will enable technological development while solving energy, water, and infrastructure development problems.
The previous fiscal year saw Budget 2025-26 allocate its resources primarily to developing Artificial Intelligence (AI) infrastructure rather than funding specific industrial projects. The government allocated over ₹1,000 crore to the India AI Mission, which aims to enhance public access to advanced computing resources and databases and digital public facilities. The National Quantum Mission and educational Centres of Excellence received funding as critical research domains.
The Economic Survey presented on January 29 2026, portrayed AI as a vital economic tool rather than an extravagant technological competition between nations. The study recommended a sector-based strategy which should apply open systems that enable different systems to work together to enhance employment, international trade, and innovative activities. Despite the industry anticipating that liquidity support would boost AI adoption through its $70 billion investment, no services sector committee was established during that period. The Anusandhan Fund supported skilling projects through its funding, which enabled industry and academic partners to work together.
The announcement shows that India has developed a more evolved AI strategy, which aims to achieve long-term social development through AI-enabled services.
