Union Budget 2026–27: AI, Design and Creative Economy Take Centre Stage in Capacity-Building Push

New Delhi: Emerging technologies and artificial intelligence featured prominently in the Union Budget 2026–27, as Finance and Corporate Affairs Minister Nirmala Sitharaman outlined a series of forward-looking initiatives aimed at fulfilling the government’s second kartavya—to meet the aspirations of citizens and build their capacities as active partners in India’s journey towards prosperity.

Presenting the Budget in Parliament, the Finance Minister said technology adoption must benefit all sections of society, including farmers, women in STEM, youth seeking to upskill, and Divyangjan looking to access new opportunities. In this context, the Budget reaffirmed strong support for innovation through flagship initiatives such as the AI Mission, National Quantum Mission, Anusandhan National Research Fund, and the Research, Development and Innovation Fund.

Bharat-VISTAAR: AI for Agriculture

A key announcement in the Budget was the proposal of ‘Bharat-VISTAAR’ (Virtually Integrated System to Access Agricultural Resources)—a copyright-free, multilingual AI-based digital tool aimed at transforming Indian agriculture. The platform will integrate AgriStack portals and ICAR’s package of agricultural practices with advanced AI systems.

According to the Budget, Bharat-VISTAAR will enhance farm productivity, improve farmer decision-making, and reduce risks through customised, data-driven advisory support, tailored to local conditions and individual farmer needs.

Boost to Orange Economy and AVGC Sector

Recognising the growing role of emerging technologies in India’s Orange Economy, the Budget highlighted the rapid expansion of the Animation, Visual Effects, Gaming and Comics (AVGC) sector, which is projected to require nearly 2 million professionals by 2030.

To build a strong talent pipeline, the Union Budget proposed support for the Indian Institute of Creative Technologies, Mumbai, to establish AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges across the country. The initiative aims to nurture creativity, digital skills, and industry-ready talent from an early stage.

Strengthening Design Education in Eastern India

In a significant step to expand design education, the Budget announced the establishment of a new National Institute of Design (NID) in eastern India. The move acknowledges the fast-growing design industry and seeks to promote regional balance while strengthening India’s design and innovation ecosystem.

Preparing for AI-Driven Jobs

Taking cognisance of the disruptive impact of AI and emerging technologies on employment, the Union Budget also proposed setting up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee. The committee will assess the implications of new technologies on jobs and skill requirements, and recommend measures to align education, skilling and entrepreneurship with future workforce needs.

Technology as an Enabler

Overall, the announcements underscore the government’s intent to leverage technology and innovation as enablers of inclusive growth—empowering farmers, nurturing creative talent, strengthening design capabilities, and preparing India’s workforce for an AI-driven future under the vision of Viksit Bharat.

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