Union Budget 2026: AI Committee Set Up to Boost Growth in Services Sector

During the Union Budget 2026 speech, India's Finance Minister announced the formation of a new committee. This committee will assess the impact of artificial intelligence and emerging technologies on the country's services sector.

As India embraces rapid technological change, the government is turning its attention to how artificial intelligence is reshaping the services economy. Finance Minister Nirmala Sitharaman on Sunday announced the formation of a new committee to assess the impact of AI and other emerging technologies on the sector.

The announcement came during her Union Budget 2026 speech in Parliament.

New Committee to Identify Growth Opportunities

Explaining the move, FM Sitharaman said the proposed committee will focus on identifying priority areas where technology can unlock new growth in services such as IT, finance, healthcare, logistics and customer support.

"The committee will prioritise areas to optimise potential for growth in the services space," she told the Lok Sabha.

Reforms Over Rhetoric, Says FM

The Finance Minister stressed that Budget 2026 reflects the government's preference for structural reforms over headline-making announcements. She reiterated that India will continue to take steady and confident steps towards becoming a Viksit Bharat, with technology playing a central role.

Ninth Straight Budget for Sitharaman

This year's Budget is Sitharaman's ninth consecutive Union Budget, taking her closer to the record of 10 Budgets presented by former Prime Minister Morarji Desai. Her uninterrupted run since 2019 places her among the longest-serving finance ministers in India's parliamentary history.

Tech Industry Was Watching Closely

Ahead of the Budget, India's leading technology companies had pinned high hopes on policy support for artificial intelligence. The industry has been seeking stronger backing for innovation, digital infrastructure, and easier access to funds to speed up AI adoption across sectors.

Economic Survey Sets the Tone on AI

The Economic Survey 2025–26, tabled on January 29, had already underlined the importance of AI as an economic strategy rather than a prestige race. It called for a bottom-up, sector-specific approach based on open and interoperable systems to promote collaboration and shared innovation.