India's MeitY Sees Budget Cuts for AI and Semiconductor Programs Amid Spending Gaps
For 2026-27, India's Ministry of Electronics and Information Technology (MeitY) proposed Rs 28,169 crore but received Rs 21,632 crore, a 17% decline from last year. The IndiaAI Mission, with a Rs 10,371 crore budget, recorded low spending, with only 11% utilization in its first year. Concerns were raised over delays in GPU procurement and structural challenges in AI infrastructure. The semiconductor program also faced underspending, with MeitY receiving Rs 8,000 crore against a proposed Rs 13,000 crore for 2026-27. The committee called for realistic budgeting and better inter-ministerial coordination.
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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.
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