Govt to Set Up AI Centres with Rs 500 Crore, Adds 75,000 New Medical Seats

GG News Bureau
New Delhi, 1st Feb. In a move to strengthen Artificial Intelligence (AI)-related education and research, the government will establish Centres of Excellence in AI with a total investment of Rs 500 crore. Finance Minister Nirmala Sitharaman made the announcement today while presenting the Union Budget 2025. Each of these centres will receive an investment of Rs 100 crore, aimed at fostering cutting-edge research and skill development in the AI sector.

Additionally, Sitharaman announced the expansion of medical education in India with the creation of 75,000 new medical seats over the next five years. This follows a substantial increase in undergraduate (UG) and postgraduate (PG) medical seats by 100 percent over the last decade, leading to a total addition of 1.1 lakh seats. As part of the next phase of expansion, 10,000 additional medical seats will be created by next year, further enhancing access to medical education and addressing the growing demand for healthcare professionals.

The Economic Survey 2024-25, presented the previous day, underscored the potential impact of AI on India’s workforce, especially in low-skill and low-value-added jobs. The Survey emphasized the need for the creation of “robust institutions” that would help workers transition into medium- and high-skilled roles where AI can augment, rather than replace, human efforts.

“Although the impact of AI on labour will be felt across the world, the problem is magnified for India, given its size and relatively low per capita income,” the Survey stated, calling for strategic interventions to ensure AI complements human capabilities and drives inclusive growth.