Union Budget 2026: FM Sitharaman Bets Big on AI to Boost Services Sector, Generate More Jobs

Union Budget 2026: Finance Minister Nirmala Sitharaman on Sunday used the Union Budget 2026 to signal a renewed push for India’s services sector, framing technology, and increasingly AI, as central to future growth, job creation and exports in a more digital economy.

Presenting the Budget in the Lok Sabha, Sitharaman proposed setting up a high-powered Education to Employment and Enterprises (E2E) Standard Committee to recommend measures aimed at unlocking the services sector’s potential as part of the broader Viksit Bharat vision. The idea, as outlined in her speech, is to tighten the link between what India teaches, the skills employers need, and the kinds of enterprises the country wants to scale, especially in tech-led services.

“The 21st century is technology-driven. Adoption of technology must benefit all sections of society — from farmers in the fields to women in STEM, youth looking to upskill, and young people seeking new opportunities,” Sitharaman said in her Budget speech.

The committee’s mandate is expected to focus on identifying priority areas where India can expand services-led output and employment, while also improving export competitiveness. Sitharaman said the panel will work toward making India a global leader in services with a target of a 10 per cent share of global services exports by 2047. It will also look at ways to maximise growth, employment and export potential across services.

While the Budget announcement did not lay out operational details of the committee in the inputs provided, the direction is clear: the government wants the services sector to be “future-ready” for an AI-led shift already underway in IT services, business process management, design, customer operations, finance back offices, and new digital delivery models.

For India’s job market, the subtext is that AI will be treated as both a productivity lever and an employment strategy, one that hinges on skilling and standard-setting rather than only subsidies. For companies, the message is that policy attention is moving to the “pipes” that feed services growth: talent pipelines, measurable standards, and export-oriented capability building.

As the E2E Standard Committee takes shape, the key question will be execution: how fast recommendations translate into curricula, certifications, and hiring-ready pathways that match the pace at which AI is reshaping service work.

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