Maharashtra approves AI policy with Rs 100 billion investment target

The Maharashtra cabinet has approved the artificial intelligence (AI) policy 2026, which targets an investment of Rs 100 billion in the sector and aims to generate 150,000 jobs. Under the policy, the government plans to set up six AI excellence centres and five AI innovation cities, according to an official statement.

The policy is in line with the central government’s India AI Mission and seeks to advance research, innovation and responsible governance. It focuses on developing AI infrastructure within the state and expanding the use of AI across industries, public services and administration. A Maharashtra AI Mission will also be established along similar lines.

Further, to build a skilled workforce suited to emerging technological needs, 200,000 young people will be trained in AI technologies.

The policy targets the development of 50 AI tools and use-cases to drive adoption across businesses and industries in the state. The government intends to provide 2,000 graphics processing units (GPUs) to support the computing infrastructure needed for implementation. In addition, 5,000 micro, small and medium enterprises (MSMEs) will be eligible for financial assistance to take up AI technologies.

Furthermore, to encourage AI-based startups and unicorns, a venture capital fund of Rs 5 billion will be created, with the state contributing Rs 2.50 billion. Subsidies on machinery purchases will also be made available for AI-driven industries.

The government will develop AI-based agents to make citizen-administration interaction simpler, and will provide financial support for building databases in Marathi and other regional languages.

Additionally, Maharashtra will become the first state in the country to put in place a dedicated framework for ethical AI, the minister said.