Budget 2026: New Panel to Tackle AI's Impact on Jobs and Future Skills

The government announced a high-powered Education to Employment and Enterprises Standing Committee in the Union Budget 2026. The committee will assess the impact of emerging technologies like AI on jobs and recommend measures, with a special focus on the services sector. Finance Minister Nirmala Sitharaman also announced targeted interventions to create skilled career pathways, including upgrading allied health institutions. These measures aim to add one lakh allied health professionals over five years and strengthen India's position in the global economy.

Key Points: Budget 2026: Panel to Assess AI Impact on Jobs & Skills

  • New panel to assess AI's job impact
  • Focus on services as growth driver
  • Target 10% global services share by 2047
  • Create 1 lakh allied health pros in 5 years
  • Upgrade and establish new health institutions
3 min read

Budget 2026: Govt to set up high-powered Education to Employment panel to assess AI impact on jobs

Govt sets up Education to Employment panel to assess AI's impact on jobs, boost services sector, and create skilled career pathways for youth.

"They will also assess the impact of emerging technologies, including AI, on jobs and skill requirements and propose measures thereof - Nirmala Sitharaman"

New Delhi, February 1

The government on Sunday announced the setting up of a high-powered Education to Employment and Enterprises Standing Committee to strengthen employment outcomes and assess the impact of emerging technologies, including artificial intelligence, on jobs and skill requirements.

Presenting the Union Budget 2026 in Parliament, Union Finance Minister Nirmala Sitharaman said the proposed committee will recommend measures with a special focus on the services sector as a core driver of economic growth.

In her budget speech, the Finance Minister said the initiative is aimed at providing a clear pathway to fulfilling the aspirations of a youthful India. "To provide a pathway to fulfilling aspirations of a youthful India with the following measures, 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 economic growth," she said.

Sitharaman said the services sector holds the potential to position India as a global leader, with a target of achieving a 10 per cent share in the global services market by 2047. She said the committee will prioritise key areas to optimise the potential for growth, employment generation, and exports.

The Finance Minister said the standing committee will also assess the impact of emerging technologies on the labour market. This includes the impact of artificial intelligence on jobs and evolving skill requirements.

Based on its assessment, the committee will propose measures to ensure that the workforce is equipped to adapt to technological changes.

FM Sitharaman stated "They will also assess the impact of emerging technologies, including AI, on jobs and skill requirements and propose measures thereof".

Highlighting the need to create diverse and skilled career opportunities for young people, Sitharaman announced targeted interventions to create a new range of skilled career pathways for India's youth. These interventions are aimed at aligning education and training systems with emerging employment opportunities.

As part of this initiative, the Finance Minister said existing institutions for allied health professionals will be upgraded. In addition, new allied health professional institutions will be established in both private and government sectors.

She said these institutions will cover 10 selected disciplines, including Optometry, Radiology, Anesthesia, Operation Theatre Technology, Applied Psychology, and Behavioural Health. The focus on allied health professions is aimed at expanding employment opportunities while supporting the growing demand for healthcare-related services.

The Finance Minister said these measures will lead to the addition of one lakh allied health professionals over the next five years.

So by focusing on services, skills, and the impact of new technologies, the government aims to support sustainable employment growth and strengthen India's position in the global economy.

- ANI

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Reader Comments

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Rohit P
Another committee? How many reports will gather dust? We need action, not more studies. Young people need jobs TODAY, not in 2047. Upgrade the education system first - most colleges are teaching outdated syllabus. Focus on practical skills, not just forming panels.
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Arjun K
Good move. The services sector is our strength. If we can skill our youth in AI and new tech, instead of fearing it, we can become a global hub. The 10% global services target by 2047 is ambitious but possible. Jai Hind! 🇮🇳
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Sarah B
As someone working in tech, this is crucial. AI is changing the landscape every month. We need a national framework for reskilling. Glad to see applied psychology and behavioral health in the list - mental health tech is a huge emerging field.
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Karthik V
One lakh allied health professionals in 5 years sounds good on paper. But where is the infrastructure? We need more hospitals and clinics first to employ them. Also, hope the committee includes young entrepreneurs, not just bureaucrats.
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Meera T
This gives me hope for my children's future. The world is changing so fast. It's good the government is thinking ahead. The focus should be on rural India too - skill development shouldn't be limited to cities. Online courses can help bridge the gap.

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