The comments were part of the “24th Report of the Standing Committee on Communications and Information Technology” submitted to Parliament on March 16 on the ministry’s funding requirements.
“Allocating more funds to the ministry may help promote digital governance, empower citizens, promote inclusive and sustainable growth in the electronics, IT and ITeS sectors… and ensure a safe cyberspace,” the committee said.
MeitY’s budget for 2026-27 is estimated at Rs 21,632.96 crore, while the budget for 2025-26 is estimated at Rs 26,026.25 crore, the report said. The ministry told the committee that the cuts were partly due to the closure of the production-linked incentive (PLI) component for large-scale electronics manufacturing, whose term ends on March 31, 2026.
The committee also noted that the discrepancy between the budget estimates for 2025-26 and the revised estimates was related to lower expenditure in the first half of the current financial year and delays in the execution of semiconductor manufacturing project agreements. The ministry told the panel that semiconductor manufacturing projects are “highly complex and technology-intensive” and approved companies must meet stipulated conditions before financial support can be released, causing delays in the agreement.
The report also highlights implementation challenges across multiple projects, including interoperability gaps in e-government systems, cybersecurity and privacy risks, and capacity constraints in digital infrastructure projects. It asked the Department to address these issues and update the Committee on progress.
On cybersecurity and digital security, the committee sought updates on the creation of additional posts in the Computer Emergency Response Team of India (CERT-In) and recommended strengthening the Data Protection Board to improve protection of personal data and address incidents of cyber fraud and digital scams.
The committee also asked the ministry to ensure that the funding shortfall does not affect the operations of the National Informatics Center (NIC), which provides core digital infrastructure for government platforms. It also recommends expanding digital public services and providing stronger local language support to improve digital inclusion.
The report also discusses the implementation trajectory of the IndiaAI mission, noting that changes in allocations partly reflect rollout dynamics following the program’s approval in March 2024. According to the ministry, the early stages will focus on institutional setup, consultations and operational guidance before scaling up activities in research, ecosystem development and international cooperation.
Among future initiatives, the group recommended leveraging additional funding under the National Knowledge Network to establish a blockchain-based national digital research repository aimed at enabling secure knowledge sharing among research institutions.
The report further recommends expanding digital literacy programs in rural and tribal areas and strengthening the IT ecosystem in underperforming states, including the Northeast, to support more balanced growth of India’s digital economy.