Budget bets on AI for farms with Bharat-VISTAAR, backs push with semiconductor and data-centre incentives

In a significant announcement on February 1, Finance Minister Nirmala Sitharaman placed artificial intelligence (AI) at the forefront of the Indian government’s initiative to modernize agriculture. During the presentation of the Union Budget 2026, she unveiled Bharat-VISTAAR, a new multilingual AI platform designed to enhance farm productivity by integrating agricultural practices with advanced AI systems. Sitharaman emphasized that this initiative aims to bridge information gaps at the grassroots level by merging government datasets with proven agricultural research. The government's commitment to this technology-driven strategy signifies a shift from pilot projects to more substantial, real-world applications. Part of a larger technological framework outlined in the budget, this agriculture initiative is poised to influence employment and skill development across various sectors. 'The 21st century is driven by technology,' stated Sitharaman, highlighting the government's ongoing efforts to support innovations through various missions, including the AI Mission and the National Quantum Mission. In addition, she proposed the establishment of a High-Powered Standing Committee to examine the implications of AI on employment and skills, aiming to address the challenges posed by emerging technologies in the workforce. To reinforce the infrastructure necessary for widespread AI implementation, the budget also detailed plans to enhance domestic semiconductor manufacturing capabilities. Building on the India Semiconductor Mission (ISM) 1.0, the government is set to launch ISM 2.0, which will focus on developing equipment, materials, and design capabilities while strengthening supply chains. Furthermore, the government aims to position India as a global leader in cloud and data center infrastructure. Sitharaman announced a tax holiday until 2047 for foreign companies utilizing Indian data centers for cloud services, a move intended to attract international investment and bolster India's digital economy. Industry experts, such as Amit Sarin, Managing Director of Anant Raj Ltd, praised the government’s vision, stating that the measures introduced in the budget will improve the feasibility of large-scale data center investments, foster innovation, and generate high-quality employment opportunities. This strategic focus positions India as a favorable destination for businesses leveraging data and next-generation technologies, promising to enhance the country's competitiveness on the global stage.