India's MeitY Sees Budget Cuts for AI and Semiconductor Programs Amid Spending Gaps
The Ministry of Electronics and Information Technology (MeitY) received Rs 21,632 crore for 2026-27, down from a proposed Rs 28,169 crore, marking a 17% decrease from the previous year's allocation. The IndiaAI Mission, launched with a budget of Rs 10,371 crore, showed low spending rates, utilizing 11% of its budget in 2024-25 and 32% in 2025-26.
Concerns were expressed regarding delays in GPU procurement and challenges in AI infrastructure development. The semiconductor program also experienced underspending, with Rs 8,000 crore allocated for 2026-27 versus a proposal of Rs 13,000 crore. The committee urged improved budgeting and coordination between ministries to enhance investment in AI and semiconductor technologies.
