Budget 2023: Nirmala Sitharaman Unveils Plan To 'Make AI Work For India'. Here's How The Industry Is Reacting

Three centres of excellence for artificial intelligence will be set up in top educational institutions across the country. 

Artificial Intelligence (AI) is slowly taking over the world, and it appears that India is wholeheartedly looking to tap into the sector, with plans to set up "centres of excellence" to develop AI technology. Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on Wednesday, announcing several development initiatives for up-and-coming tech such as 5G and AI. 

Sitharaman announced that in order to help realise the vision of "Make AI In India and Make AI work for India," three centres of excellence for artificial intelligence will be set up in top educational institutions across the country. 

The Union Minister also said that major industry players will partner in conducting interdisciplinary research, and develop cutting-edge apps and "scalable problem solutions" in these areas — agriculture, health, and sustainable cities. 

"This will galvanize an effective AI ecosystem and nurture quality human resources in the field," Sitharaman noted. 

The focus on AI has been renewed on a global scale especially since US-based research lab released the prototype of its AI-driven chatbot, ChatGPT, which took over the world with its ability to provide solutions to complex queries with surprisingly human-like responses. 

As for 5G, Sitharman also announced that 100 labs will be set up across engineering institutions in the country to develop apps using the next-gen telecom services. These 5G labs will cover apps like Smart Classrooms, Precision Farming, as well as Transport Systems. 

She also announced that the government will support the setting up of battery energy storage of 4,000 MWh with viability gap funding.

"Have an outlay of Rs 35,000 crore for energy transition investment," Sitharaman announced.

The announcement is expected to attract more investments in energy storage and enhance renewable energy grid integration.

How the industry is reacting

“In the year 2022, India witnessed an unprecedented increase in cyberattacks and their level of sophistication. Cybercriminals are using new and advanced AI technology to attack Indian government agencies and businesses in India to cause significant damage to the country’s reputation. The 2023 Union Budget showcased our government's focus on strengthening the digital infrastructure of the country, which finds a clear reflection in the National Data Governance policy which will create a secure channel to access anonymized data. This budget fully supports the vision of a self-reliant and cyber-safe India," said Dr Kailash Katkar, Managing Director and CEO, Quick Heal Technologies.

Katkar added, "Some of the key takeaways include the three centres of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India', online training platforms for government employees, impetus on creating informative and accessible digital public infrastructure for agriculture and the setting up of a National Digital Library for children and adolescents amongst others. With this, I am confident that cybersecurity has become more relevant than ever, and will be the make or break for economic progress.”

“The fiscal budget 2023-2024 has emphasized the significance of overall digitalization in the country. It is crucial to comprehend that the honourable finance minister has kept the agenda of e-governance high. The new guidelines introduced regarding Digilocker services will upgrade the technological paradigm of the country," said Saurav Bhaik, Founder and CEO, Tagbin.

"Through the announcement of numerous guidelines, it has been highlighted in the current budget that India will embrace the new-age technologies of Artificial Intelligence, Virtual Reality, utilization of 5G, immersive 3D, etc. along with industry 4.0 technology. Significantly, the adoption of such modern technologies will not only prosper the nation on the technological front but also will promote the cultural heritage of the country," Bhaik added. "It is important to highlight that numerous digital campaigns have been an integral part of the ‘Amrit Kaal’ which will be celebrated for 25 years remaining in celebration of India’s 100th Independence anniversary. Prominent campaigns such as Digital Sankalp, Har Ghar Tiranga, Rashtra Gaan, Digital Jyot etc. have portrayed the digital progression of India along with patriotism. The prolific policies introduced in the financial budget ‘2023 are expected to transform India in the digital sphere drastically.”

"We applaud the announcement of the establishment of centres of excellence for AI in prestigious institutions, which will aid in the creation of ground-breaking applications and scalable solutions to challenges in the field of health," said Dr. Kanury Rao, co-founder and CSO, PredOmix.

"The introduction of a new course will aid medical students in learning about medical devices and provide them with new career opportunities. Furthermore, we anticipate additional investment in the healthcare sector as a result of the expansion of ICMR labs in India," Rao added.

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