The Union Budget 2025-26 has provided a significant boost to India’s research and development (R&D) sector, allocating Rs. 20,000 crore (US$ 2.30 billion) to the Department of Science and Technology (DST). This investment aims to accelerate innovation in Artificial Intelligence (AI), geospatial technologies, and emerging research fields, strengthening India's position as a global technology powerhouse.

Massive Investment in AI and Geospatial Technologies

Finance Minister Mrs. Nirmala Sitharaman emphasized that the Rs. 20,000 crore allocation will drive AI innovation, geospatial initiatives, and private-sector research collaborations. This move aligns with the government’s commitment to enhancing India's digital and scientific capabilities, ensuring widespread industry-academia cooperation and commercialization of research projects.

The budget also includes an expansion plan for Atal Tinkering Labs, with the government committing to establishing 50,000 new labs over the next five years. These labs will inspire young minds and cultivate a culture of scientific discovery and entrepreneurship.

Industry Experts Applaud the Move

Industry leaders have welcomed the government’s proactive stance on technology-driven economic growth. Mr. Shirshendu Mukherjee of Wadhwani Innovation Network praised the allocation, noting that it demonstrates a strong commitment to fostering private-sector innovation.

Additionally, the focus on quantum computing, supercomputing, and next-gen AI applications is expected to enhance India's standing in global tech markets.

Challenges and Areas for Improvement

While the budget increase is seen as a positive step, some experts believe that India still lags behind countries like China, Japan, and Korea in R&D spending.

• Mr. Dushyant Chachra, CFO of Sukhbir Agro Energy Limited (SAEL), emphasized the need for a more comprehensive strategy for energy sector R&D.
• Mr. Vishwanathan Iyer, Senior Associate Professor at Great Lakes Institute, called for deeper tax incentives and corporate R&D spending to encourage private-sector involvement.
• Emeritus Scientist Mr. Bharat Kale highlighted that India’s overall R&D expenditure needs to scale up to match global benchmarks.

Increase in Science and Technology Budget

The Department of Science and Technology (DST) received a substantial budget increase to Rs. 23,290 crore (US$ 2.67 billion) in 2025-26, a major step toward strengthening India’s research capabilities. This funding will support cutting-edge projects in AI, quantum computing, and supercomputing, ensuring that India remains competitive in emerging technologies.

The AI sector, in particular, is expected to witness rapid growth, with increased funding fostering innovation in automation, robotics, and machine learning.

India’s Path Toward a Tech-Driven Economy

With the government’s strong push for AI, geospatial research, and innovation labs, India is positioning itself as a global hub for technology development. However, to sustain long-term growth, private-sector investment, tax incentives, and global collaborations will be crucial.

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