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Government Allocates Rs.10,372 Crore to Boost AI Adoption

CIO Insider Team | Tuesday, 31 March, 2026
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According to reports, the Government of India is increasing initiatives to encourage the use of Artificial Intelligence (AI) and digital technologies in Micro, Small, and Medium Enterprises (MSMEs).

The effort is being propelled by the IndiaAI Mission, an extensive program sanctioned on 7th March 2024, with an overall budget of Rs.10,371.92 crore.

The mission centers on enhancing the AI ecosystem in various areas, such as India's AI Compute Capacity, Innovation Centres, a Datasets Platform, an Application Development Initiative, Future Skills Programs, and Startup Financing to promote AI-based entrepreneurship.

To guarantee successful execution, the government performs regular evaluations of digital uptake among MSMEs in partnership with industry specialists and research organizations. Furthermore, the Output-Outcome Monitoring Framework of NITI Aayog acts as an essential tool to assess the effects of these initiatives.

While addressing the Rajya Sabha, Minister of State for MSMEs Sushri Shobha Karandlaje emphasized that these initiatives seek to improve competitiveness, encourage innovation, and allow MSMEs to utilize AI for growth and efficiency.

The IndiaAI Mission signifies a significant effort to incorporate AI and digital technologies into India’s MSME sector, coinciding with the larger aim of enhancing businesses to be more technology-oriented, efficient, and prepared for the future.

Also Read: NVIDIA's Rubin Moment at CES: AI Supercomputing Breakthrough

India's technology regulators are suggesting a new expansion of the nation’s digital governance framework, which could greatly change how platforms, publishers, and advertisers function in an already heavily regulated environment.

Also Read: AI Autonomy Race: How Advanced are Top Countries' AI Strategies?

The core of the proposal involves a structural modification in the manner that intermediaries react to government communications

On March 30, the Ministry of Electronics and Information Technology (MeitY) released a notice requesting public input on suggested changes to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. Although officials have labeled the changes as "clarificatory and procedural," the implications indicate a significant move toward enforceable oversight.

Also Read: From Silos to Synergy: Building the Future With Agentic AI

The core of the proposal involves a structural modification in the manner that intermediaries react to government communications. A recently added requirement would establish that adhering to official advisories, clarifications, and directions is a formal aspect of the due diligence responsibilities necessary for platforms to maintain safe harbour protections under Section 79 of the IT Act.



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