Artificial Intelligence (AI), like any other technology, comes with its own set of boons and banes. According to the Stanford AI Index 2024, India ranks first globally in AI skill penetration with a score of 2.8, ahead of the US (2.2) and Germany (1.9). AI talent concentration in India has grown by 263% since 2016, positioning the country as a major AI hub. India also leads in AI Skill Penetration for Women, with a score of 1.7, surpassing the US (1.2) and Israel (0.9).
India in its AI Era
According to a PIB report, India is one of the top five fastest-growing AI talent hubs, alongside Singapore, Finland, Ireland, and Canada. The demand for AI professionals in India is projected to reach 1 million by 2026. Taking this advancement into mind, all eyes will be on the Budget for 2026, judging what the government intends to propose to boost the AI landscape in India.
“India’s rapid advancement in the AI era places the spotlight on the upcoming Union Budget as a decisive moment for building a future-ready workforce. With over 40% of India’s IT and gig workforce already utilising AI tools, and India projected to account for the world’s AI talent by 2027, there is clear momentum; yet, significant gaps remain.
Although the employability of the workforce has improved, some part of the young workforce possesses deep AI skills, and many companies complain about the difficulties in hiring the right people. The provision of more funds for AI workforce training programs, along with the National Education Policy’s emphasis on the incorporation of applied AI, data science, and digital technologies into the curriculum, is important. We anticipate policies that foster close cooperation between the industry and the universities, provide incentives for certifying the basic knowledge gained through practical training, and allow more students to have access to hands-on labs and internships. Not only will these measures lift the entry-level skills of the labour force, but they will also make it certain that the young population of India is capable of turning to the global market as the main supplier of leaders in the coming years,” says Tarun Anand, Founder & Chancellor, Universal AI University.
Shortcomings of AI: Cybersecurity Threats
While AI has great potential and proposed advanced opportunities in various sectors, it comes with its own set of shortcomings. The issues of cybersecurity have escalated significantly in the AI era. Subsequently, it will be important to note what the new budget has in store to build on cybersecurity, as AI will continue to dominate the Indian landscape.
“As India approaches the 2026 Union Budget, the cybersecurity sector does so with clarity: compliance is no longer optional, and policy must now accelerate infrastructure transitions that enterprises cannot manage alone. In 2025, India faced nearly 265 million cyberattacks, with AI-driven ransomware democratizing threats at an unprecedented scale.
First, cybersecurity data centre infrastructure must be formally recognised as a critical national asset. Expanding the PLI framework to include cybersecurity data centres would strengthen India’s cyber sovereignty and reduce reliance on offshore infrastructure.
Second, the Budget should enable public–private partnerships to bolster SME cyber resilience. Manufacturing and mid-market enterprises are increasingly targeted by ransomware-as-a-service, yet lack access to enterprise-grade security. Government-backed subsidies routed through certified MSP networks would protect the Make in India ecosystem while democratizing DPDP compliance at scale.
Third, India must invest decisively in cybersecurity talent infrastructure. With a shortage of over 80,000 professionals, Budget 2026 should fund structured partnerships between government, academic institutions, and industry certifiers. This would create a domestic talent pipeline comparable to Singapore’s model. While we currently train over 2,000 professionals annually, government backing could scale this to more than 10,000 within three years.
The DPDP execution phase, starting in November 2026, will ultimately determine whether cyber resilience scales equitably across the country or remains concentrated in metro markets. Through targeted investments in infrastructure, partnerships, and education, the 2026 Budget has the opportunity to shape that outcome decisively,” says Rajesh Chhabra, General Manager, India and South East Asia, Acronis
By: Shreya Bansal, Sub-Editor
