Union Budget 2026: Big focus on AI talent, upskilling youth for tech jobs

Bengaluru: The Union Budget outlined a strong focus on emerging technologies, including Artificial Intelligence, and upskilling youth to create a new range of skilled career pathways.  Finance Minister Nirmala Sitharaman has proposed measures for upskilling and reskilling of technology professionals and engineers in AI and emerging technologies, and also proposed steps to be taken to attract skilled diaspora and foreign talent into the country.

The Budget’s emphasis on large-scale capacity-building AI missions marks a structural shift in how India is preparing for an AI-driven economy, Mahesh Makhija, Leader and Partner, Technology Consulting, EY India, said. "By prioritising talent development, research, compute infrastructure, data readiness, and mission-mode innovation together, the government is building the foundational layers for sustainable AI adoption rather than fragmented pilots. This integrated approach can accelerate productivity across industries, strengthen indigenous innovation, and make public services more responsive and efficient," he said.

During her budget speech, Finance Minister Nirmala Sitharaman said that the 21st century is technology-driven and adoption of technology is for the benefit of all people - farmers in the field, women in STEM, youth keen to upskill and Divyangjan to access newer opportunities.

Also, during the press conference, she emphasised that technology should be utilised to benefit the common man.

Sachin Panicker, Chief AI Officer, Fulcrum Digital,  said the Union Budget recognises that AI is no longer an experimental technology but a strategic lever for governance, productivity and economic growth. "It has specifically highlighted AI applications to enhance governance and introduced measures such as the AI Mission, National Quantum Mission and significant new funding through the Anusandhan National Research Foundation and the Research and Development and Innovation Fund," he said.

The country's service-led economy can get disrupted with strong gains in AI, and hence the government's focus on building India as a powerhouse of strong AI talent is a great step to retain our continued growth in the world economy, Ankur Mittal, Co-Founder, Inflection Point Ventures said.

"This will also increase a great flow of capital to India from global tech giants to take advantage of the talent pool while also supporting the Indian startup ecosystem," Mittal said.