FM Sitharaman pitches AI training centres in every district, insurance for all by 2047

Finance Minister Nirmala Sitharaman on Monday said the government wants to establish AI training-capable centres in every district to prepare young people for artificial intelligence-enabled jobs, while reiterating its goal of achieving insurance coverage for all by 2047.

Speaking at an event organised by HSBC in Mumbai, Sitharaman identified insurance, access to credit and pensions as key priorities for financial inclusion, while stressing the need to equip India's workforce with skills suited to changing industry requirements.

"Equally important is the way in which we have to skill youth to AI-enabled jobs," she said, adding that the government wants every district to have an AI training-capable centre where young people can acquire the necessary skills without having to leave their districts.

The initiative is aimed at addressing the gap between the skills employers seek and the capabilities of young people entering the workforce.

"We want to bridge that gap," Sitharaman said, referring to the mismatch between industry expectations and the skills of graduates, including those emerging from engineering colleges.

She also said the government was investing in upgrading Industrial Training Institutes (ITIs), many of which had not kept pace with changing requirements. The Centre is funding ITIs across states to ensure that the necessary IT and AI training infrastructure is available. She cited Assam and Odisha as examples of states that had partnered with Singapore for training and certification.

Insurance for all remains a priority

On financial inclusion, Sitharaman said insurance coverage for all by 2047 was already a stated goal of the government.

"Insurance should deepen and go to the last citizen who needs to get covered," she said.

She referred to the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, under which citizens can access insurance at relatively low premiums. The government also subsidises premiums for those unable to afford them, enabling participation in insurance and pension schemes, she said.

Sitharaman added that wider access to credit was another priority, particularly for individuals seeking to start or expand businesses. The Atal Pension Yojana and other government-backed programmes would also continue, she said.

Fiscal prudence remains a priority

On government spending, Sitharaman said capital expenditure would remain an important part of India's growth strategy, helping encourage private investment and the creation of new capacities.

"We agree that we need to spend and spend. But it has to be with responsibility," she said, adding that the government would continue to monitor the fiscal deficit.

"Under Prime Minister Modi, fiscal prudence will be a priority," she said.

The Finance Minister also referred to a recently constituted high-level committee that will consult industry participants and experts before recommending measures to strengthen India's banking system.

She said Indian banks had recovered from the difficulties faced during 2013-15 but needed to prepare for the requirements of building a developed India.