'Focus On Impact Of AI On Jobs': India's FM Nirmala Sitharaman Announces New Standing Committee To Help Upskill Service Sector In Budget 2026

In the Union Budget 2026- 2027 presented by the Indian Finance Minister Nirmala Sitharaman, the government outlined a renewed emphasis on the service sector. The centerpiece of service sector proposals was the creation of the high-powered Education to Employment and Enterprises Standing Committee. This body is tasked with recommending measures to optimise the sector's potential for growth and also assess the impact of emerging technologies, including AI, on jobs and skill requirements, and propose measures thereof.

New Education to Employment and Enterprises Standing Committee announced

In her budget speech, Finance Minister Nirmala Sitharaman emphasised the committee's role in countering disruptions from emerging technologies, stating, "I propose to set up a high-powered Education to Employment and Enterprises Standing Committee to recommend measures that focus on services sector as a core driver of Viksit Bharat. This will make us a global leader in services, with a 10 percent global share by 2047. The committee will prioritise areas to optimise potential for growth, employment, and exports. They will also assess the impact of emerging technologies, including AI, on jobs and skill requirements, and propose measures thereof."

This committee is envisioned as a strategic tool to bridge education, employment, and enterprise development, with a sharp focus on the service sector's vulnerabilities to AI-driven automation. By evaluating AI's effects on job profiles and skill needs, it aims to propose upskilling programs, policy interventions, and reskilling pathways to offset potential job losses. Sitharaman asserts that the government has a track record of lifting nearly 25 crore people out of multi-dimensional poverty over the past decade through sustained reforms, extending this inclusive approach to create skilled career opportunities in a technology-transformed landscape.

Sitharaman's emphasis on this committee underscores its role in offsetting AI job losses by fostering a resilient workforce.

Other key government AI-led initiatives

Other key government-wide steps to support emerging technologies, which indirectly bolster the service sector, include the India AI Mission, the National Quantum Mission, the Anusandhan National Research Fund, and the R&D and Innovation Fund. These aim to foster innovation and capacity building across sectors, ensuring technology serves as an enabler for inclusive growth. However, the primary initiative tailored to the service sector is the establishment of a high-powered standing committee, designed to address both opportunities and challenges, particularly those posed by AI automation.

The sector is positioned as a pathway to economic growth, employment generation, and global leadership, with a specific target of capturing a 10 percent share of the global services market by 2047. This focus comes amid broader technology-driven initiatives, recognising the 21st century as an era where technology adoption benefits diverse groups, including farmers, women in STEM, youth seeking upskilling, and persons with disabilities (divyangjan) accessing new opportunities.