
The observations are part of the “twenty-fourth report of the Standing Committee on Communication and Information Technology”, which was presented in Parliament on March 16, on the ministry’s demand for grants.
The committee said that “allocating more funds to the ministry can help promote digital governance to empower citizens, promote inclusive and sustainable growth of electronics, IT and ITES industries… and ensure a secure cyber space.”
According to the report, MeitY’s budget estimate for 2026-27 stands at Rs 21,632.96 crore as compared to Rs 26,026.25 crore in the 2025-26 budget estimate. The ministry told the committee that part of the reduction reflects the discontinuation of the Production Linked Incentive (PLI) component for large-scale electronics manufacturing, which will expire on March 31, 2026.
The Committee also noted that the differences between the Budget Estimates and the Revised Estimates in 2025-26 were attributed to lower expenditure in the first half of the financial year and delays in execution of contracts under semiconductor manufacturing projects. The ministry told the panel that semiconductor manufacturing projects are “highly complex, technology-intensive” and that approved companies have to meet prescribed conditions before financial support is released, leading to delays in contracts.
The report also highlights implementation challenges across several programs, including e-governance systems, cyber security and privacy risks, and capacity constraints in digital infrastructure projects. It asked the ministry to resolve these issues and inform the committee about the progress.
On cyber security and digital security, the committee sought updates on the creation of additional posts in the Indian Computer Emergency Response Team (CERT-In) and recommended strengthening the Data Protection Board to protect personal data and tackle incidents of cyber fraud and digital scams.
The committee asked the ministry to ensure that the funding shortfall does not affect the functioning of the National Informatics Center (NIC), which provides the core digital infrastructure for government platforms. It recommended expanding digital public services with stronger local-language support to improve digital inclusion.
The report also discussed the implementation trajectory of the IndiaAI mission, noting that the allocation variations partly reflect the program’s rollout dynamics after approval in March 2024. According to the ministry, the initial phase focused on institutional setup, consultancy and operational guidelines before scaling up activities across research, ecosystem development and international collaboration.
Among future initiatives, the panel suggested using increased funding under the National Knowledge Network to establish a blockchain-based National Digital Research Repository to enable secure knowledge sharing among research institutions.
The report also recommends expanding digital literacy programs in rural and tribal areas and strengthening the IT ecosystem in underperforming states including the Northeast for a more balanced growth in India’s digital economy.