Delhi Budget Charts Expansion in Semiconductors, Drones and AI
The government has allocated ₹8.20 crore to establish two centers of excellence dedicated to artificial intelligence.
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Image Credit- Diksha Mishra/ MIT Sloan Management Review Middle East
Presenting the Delhi state budget in the Legislative Assembly on March 24, Chief Minister Rekha Gupta said the government plans to expand the city’s presence in industrial and technology-driven sectors.
The 2026-2027 budget allocated ₹1 crore to develop a semiconductor policy to improve infrastructure and encourage companies to establish operations in the city.
A separate allocation of ₹1 crore has been proposed for a drone policy, which is expected to focus on attracting investment and supporting startups in the sector.
The government has also earmarked ₹8.20 crore for setting up two centers of excellence for artificial intelligence. These centers are expected to work on applications in governance, healthcare, education, urban mobility and public services.
“We are committed to transforming Delhi into a production-driven and growth-oriented economy,” Gupta said.
Alongside technology initiatives, the budget includes measures for micro, small and medium enterprises. An allocation of ₹48 crore has been proposed for common facility centers, which will provide shared infrastructure such as workshops and labs.
The government has also allocated ₹10 crore for a warehousing policy and introduced the Raising and Accelerating MSME Performance scheme in Delhi.
Under the programme, 32,000 MSMEs are expected to receive training, while over 15,000 businesses may be linked to digital platforms.
“We do not wish to limit Delhi merely to being a service economy; rather, we aim to establish it as an innovation-driven, industrial powerhouse,” Gupta said.
Several other states, including Gujarat, Odisha, Uttar Pradesh, Tamil Nadu and Karnataka, have introduced semiconductor policies to attract investment in the sector. Delhi’s policy is yet to be detailed but is expected to focus on design and innovation.
“We are not merely addressing the needs of the present; we are also preparing for the economy of the future,” Gupta said.
