A parliamentary committee has recommended the enhancement of institutional capabilities in cybersecurity, data protection, and digital infrastructure as it evaluated the spending plans of the Ministry of Electronics and Information Technology (MeitY) for the fiscal year 2026-27. The committee expressed concerns that inadequate funding could hinder the expansion of digital governance systems and cybersecurity capabilities while also affecting new initiatives such as artificial intelligence infrastructure. These observations were recorded in the “Twenty-Fourth Report of the Standing Committee on Communications and Information Technology,” which was presented in Parliament on March 16.

Funding Allocation for MeitY and Budget Estimates

According to the report, the budget allocation for MeitY in 2026-27 is projected at Rs 21,632.96 crore, a decrease from Rs 26,026.25 crore allocated in the 2025-26 fiscal estimates. The ministry explained that the reduction in budget reflects the conclusion of the production linked incentive (PLI) component for large-scale electronics manufacturing, which is set to expire on March 31, 2026. Furthermore, the committee noted discrepancies between budget estimates and revised allocations for the previous fiscal year due to lower expenditures in the first half and delays in implementation linked to semiconductor manufacturing projects. The ministry clarified that such projects are complex and require approved companies to meet specific conditions before funding can be released, contributing to these delays.

Implementation Challenges Identified

The report outlined various challenges faced in implementing numerous programs, including interoperability issues within e-governance systems and risks associated with cybersecurity and privacy. It emphasized the need for the ministry to address these challenges proactively and keep the committee updated on progress. To enhance cybersecurity and safety measures, the committee requested updates regarding the establishment of additional positions within the Indian Computer Emergency Response Team (CERT-In) and recommended bolstering the Data Protection Board to enhance protections for personal data, subsequently addressing cyber fraud and digital scams.

Impact on the National Informatics Centre

The committee stressed the importance of ensuring that funding constraints do not impede the operations of the National Informatics Centre (NIC), which is responsible for providing essential digital infrastructure to government platforms. The committee also advocated for the expansion of digital public services with improved support for local languages, aiming to enhance digital inclusion across various demographics.

Development of the IndiaAI Mission

In discussing the progress of the IndiaAI Mission, the report noted that changes in funding allocations reflected the dynamics of the program’s rollout after its approval in March 2024. The ministry indicated that initial phases are primarily focused on institutional establishment, stakeholder consultations, and the development of operational guidelines before advancing towards larger-scale operations in research, ecosystem growth, and international partnerships.

Future Initiatives and Digital Literacy Expansion

Among proposed future initiatives, the committee suggested leveraging increased funding under the National Knowledge Network to develop a blockchain-based National Digital Research Repository designed to facilitate secure knowledge sharing among research institutions. Furthermore, the report emphasized the necessity of expanding digital literacy initiatives in rural and tribal regions, as well as bolstering the IT ecosystem in underperforming states, including those in the Northeast, to foster equitable growth in India’s digital economy.

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