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Budget 2026: Modi govt makes big move on impact of AI, emerging tech on jobs, proposes to constitute…

Budget 2026: Finance Minister Nirmala Sitharaman said the proposed panel will closely examine how AI, automation and digital tools are changing employment patterns across key sectors.

Budget 2026: The central government, in the Union Budget 2026 presented on Sunday, announced the formation of a high-powered standing committee to study how emerging technologies like artificial intelligence (AI) are impacting jobs in India’s service sector.

Finance Minister Nirmala Sitharaman said the proposed panel will closely examine how AI, automation and digital tools are changing employment patterns across key sectors such as information technology, finance, tourism, healthcare and logistics. This move is part of the government’s long-term goal to secure a 10 per cent share of the global services market by 2047 under the Viksit Bharat vision.

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“I propose to set up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to recommend measures that focus on the services sector as a core driver of Viksit Bharat,” Sitharaman said in her Budget speech.

She added that the committee will identify priority areas for growth, employment and exports, while also assessing how new technologies like AI are reshaping job roles and skill requirements.

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The panel is expected to suggest new skilling pathways and policy measures to help workers adapt to changing technology and stay relevant in the future job market. Sitharaman said cutting-edge technology and AI can act as force multipliers for economic growth if used wisely.

The Budget also proposed the launch of an AI-powered tool to improve agricultural productivity and increase farm efficiency. In another technology-led employment initiative, the government announced plans to create a national digital knowledge grid for important tourist destinations. This platform will connect destinations, service providers and local businesses, helping generate jobs and boost tourism-related income.

Presenting her record ninth consecutive Budget, Sitharaman said over 350 reforms have been implemented since August 15 and stressed the need to continue structural reforms.

First published on: Feb 01, 2026 11:45 AM IST


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