As the Union Budget 2025 approaches, industry leaders from across the tech sector are voicing their expectations for measures that will foster innovation, enhance infrastructure, and accelerate the country's digital journey. With a focus on enabling the growth of AI, cloud computing, and cybersecurity, these leaders believe that strategic policy decisions will be key in positioning India as a global leader in technology. Here's a look at the expectations of some key tech leaders:
Driving Digital Economy Forward
Prabhakar Iyer, Executive Director and CFO, Ingram Micro India emphasizes the importance of measures that drive the digital economy forward. He comments, “As part of digital drive across the country, providing accelerated depreciation on the technology investments and providing new industrial undertaking status to data centres will be a welcoming measure. With the digital drive and cloud enabled business and SaaS booming across the globe, it will be a welcoming measure to have a proper clarity on the withholding tax/TDS on cloud services/SaaS provided domestically or from overseas.”
Prabhakar further adds, “To ease the industry from the working capital block and administrative convenience, it is good to simplify the TDS/Withholding tax rate in terms of a single rate and to be deducted only on the value-added portion of the transaction. TDS/Withholding tax on promotional expenses like discounts, freebies, price support, events, travel, etc. to be removed so that there is ease in doing business and reduced litigation and interpretation issues.”
“To boost consumption in the economy reduction of personal taxation will be a welcoming measure. The non-corporate tax rate can be in line with corporate tax. Similarly increase in standard deduction to salaried class up to 15% of the salary to cover education, medical and other basic expenses will be a welcoming measure too,” he concludes.
Innovation and Digital Growth
Prashanth G J, COO, TechnoBind Solutions advocates for measures that encourage innovation and the adoption of emerging technologies. He said, "As we approach the Union Budget 2025, the Indian technology industry looks forward to further measures that foster innovation, infrastructure growth, and a robust digital economy. We hope this year’s budget prioritizes incentives for adopting emerging technologies such as AI, multi-cloud ecosystems, and zero-trust security frameworks, which are becoming increasingly vital in a rapidly evolving digital landscape."
"Investments in building scalable digital infrastructure, skilling initiatives tailored to the IT sector, and increased ease of doing business for startups can significantly boost India’s competitive edge globally. As the industry evolves toward sustainability and global competitiveness, we look forward to a budget that reflects India’s commitment to a secure, digitally inclusive, and innovation-driven economy," Prashanth notes.
Digital Economy Growth
Piyush Garg, Chief Financial Officer, RAH Infotech looks to the government to support digital-first initiatives that boost cybersecurity and AI adoption. Piyush says, "As a leader in IT distribution and cybersecurity, RAH Infotech is optimistic about the Union Budget 2025, particularly in fostering a robust digital-first economy. We anticipate measures that enhance cybersecurity frameworks, support cloud and AI adoption, and incentivize the adoption of advanced IT solutions across sectors.”
“A reduction in GST rates on IT products and cybersecurity tools, as well as tax benefits for businesses investing in digital transformation, would be pivotal in driving widespread technology adoption. Additionally, increased allocation for capacity-building initiatives, such as upskilling in areas like cybersecurity, AI, and data science, will not only address the talent gap but also accelerate innovation. The government’s focus on creating a secure digital ecosystem, especially for SMEs and startups, will be a critical factor in empowering India to compete on the global stage. At RAH Infotech, we stand ready to complement these efforts by delivering world-class IT solutions that align with the nation’s technology-driven aspirations," Piyush states.
Customer Experience and Digital Transformation
Gurpal Singh, Chief Operating Officer, Startek emphasizes that the Union Budget 2025 has the potential to empower the customer experience (CX) sector through fiscal policies. According to Gurpal, “Union Budget 2025 will be instrumental for driving meaningful business impact across the customer experience (CX) industry. In an environment where CX directly influences customer retention and revenue growth, fiscal policies that promote technological innovation and digital adoption will empower businesses to achieve tangible outcomes. We recognize that investments in AI, workforce upskilling, and operational efficiencies translate directly into improved customer loyalty, faster go-to-market strategies, and enhanced profitability. Additionally, sustainability-focused initiatives can align business objectives with consumer demand, creating a win-win scenario. By promoting resilience and agility, the budget has the potential to unlock major growth opportunities for the CX sector, positioning India as a leading global CX hub.”
Fintech and Financial Inclusion
Rishabh Goel, Co-founder & CEO, Credgenics highlights the need for budgetary support to foster fintech innovation and financial inclusion. Rishabh comments, "The Union budget is a crucial time for India’s fintech industry with immense potential to fuel innovation, enhance financial inclusion and drive economic growth. To remain globally competitive, fintech companies need support for R&D in cutting-edge technologies such as artificial intelligence, data analytics and blockchain. This support should be coupled with strong public-private partnerships to advance technology enhancement in the regulatory segment. Increased investment in R&D initiatives, nurturing a skilled talent pool, and incentivizing the adoption of AI across key sectors are paramount to achieving India's ambition of becoming a global AI leader, with the market projected to reach $17 billion by 2027.”
Cloud Computing and Gen AI
Joseph Sudheer Thumma, Global CEO & MD, Magellanic Cloud hopes the budget will prioritize policies that address the rapidly evolving needs of the tech sector. He notes, "In an era of rapid Gen AI, and cloud computing, we expect the government’s upcoming budget to prioritize policies that foster innovation and address the evolving needs of the tech sector. This includes continued support for R&D in cutting-edge technologies, initiatives to bridge the digital divide and enhance digital literacy, and a focus on developing a robust infrastructure to safeguard our digital assets. We believe these measures will be crucial for India to maintain its competitive edge in the global technology landscape."
Inclusive Growth and Regional Development
Anjan Pathak, CTO and Co-founder of Vantage Circle, emphasizes the need for measures that drive inclusive growth, especially in regions like Northeast India. "As we approach the Union Budget 2025, we hope to see measures that drive inclusive growth, particularly in regions like Northeast India, which hold immense potential for innovation and entrepreneurship. Strengthening digital infrastructure, expanding support for MSMEs, and enhancing access to emerging technologies like AI-driven automation and blockchain could significantly boost regional development and economic progress. Additionally, we look forward to incentives that encourage R&D and digital skill development, enabling businesses to stay competitive in a rapidly evolving global market. Prioritizing cybersecurity and long-term financial support for technology adoption will be pivotal in ensuring sustainable growth and innovation across the nation," he concludes.
Support for Startups and Simplified Regulations
Sumit Singh, CEO and Co-founder of DashLoc, stresses the importance of reducing regulatory complexities that hinder the growth of startups. He notes, "As the Union Budget 2025 approaches, it is crucial for the government to focus on bolstering the startup ecosystem by reducing regulatory complexities, which often hinder growth. Establishing dedicated IT software parks can provide startups with essential infrastructure and foster innovation. Additionally, simplifying access to loans through banks and government-backed schemes will ensure that startups can secure funding more efficiently, enabling them to scale and contribute significantly to the economy. These measures will create a conducive environment for startups to thrive and position India as a global leader in innovation"
Sustainability and Clean Energy Innovations
Rajesh Gupta, Founder and Director of Recyclekaro, highlights the need for strong policy support and tax incentives for renewable energy and electric mobility sectors. He says, “We hope to see strong policy support and tax incentives that encourage innovation in clean energy solutions like solar, wind, and energy storage, while also prioritizing the growth of domestic manufacturing for green technologies. Simplifying regulations, alongside increased funding for renewable energy R&D and grid integration, can help India maintain its position as a global leader in sustainable energy.”
Rajesh further says, “Additionally, as the EV market rapidly grows, the budget must address critical needs in the EV battery and recycling sectors. Policies that promote the development of advanced battery manufacturing, establish robust recycling networks, and support circular economy initiatives are crucial for a self-sufficient and sustainable electric vehicle ecosystem. Strengthening research and encouraging collaboration between public and private sectors in the battery supply chain will not only reduce our reliance on imports but also pave the way for India to become a global leader in clean innovation".
Retail Sector Reforms
Rohan Bhargava, Co-Founder of CashKaro and EarnKaro, stresses the need for faster implementation of the National Retail Policy to ease operational challenges for retailers. According to Rohan, “There is a strong need for measures that address the evolving dynamics of India’s retail sector, which witnessed a 7% surge during the recent festive season, with food and grocery leading at 14%. Retailers are eagerly looking forward to the faster implementation of the National Retail Policy, which can provide a structured framework to support growth. Additionally, initiatives such as low-interest financing and targeted tax breaks could ease operational challenges, especially for MSMEs. Promoting technology adoption in retail is equally crucial to help traditional players compete effectively with the growing quick commerce segment. A budget with these measures can unlock significant potential, driving sustained growth and innovation in the retail ecosystem."
Digital Payments and E-commerce Growth
Swati Bhargava, Co-Founder of CashKaro and EarnKaro, calls for clearer regulations on inventory norms, marketplace roles, and consumer protection for the e-commerce sector. "As the e-commerce sector continues to shape India's digital economy, the Union Budget 2025-26 presents an opportunity to address key areas that can drive its next phase of growth. Clearer regulations around inventory norms, marketplace roles, and consumer protection are essential for creating a stable and predictable business environment. Additionally, expanding digital infrastructure, particularly in rural areas, can unlock untapped markets and boost rural economies by bringing more consumers and businesses online. Promoting digital payments is equally critical, as it enhances financial inclusion, streamlines transactions, and fosters transparency across the ecosystem. We expect that budget 2025 prioritizes these aspects which can strengthen the e-commerce industry's foundation and accelerate its contribution to India’s economic progress," Swati notes.
Crypto Innovation and Progressive Taxation
Nikhil Sethi, Founder and MD of Zuvomo, calls for clear compliance frameworks and a balanced taxation system for the crypto industry. He comments, "The Budget 2025 is a critical moment for India to reclaim its leadership in the global tech ecosystem. India ranks #1 in the number of crypto holders and #3 in tech unicorns globally. Yet, we seem to have missed the Web3 tsunami, which doubled its market cap in 2024 and saw DeFi TVL surge by 2000% year-on-year. Ambiguity in crypto compliance and a regressive tax regime have hindered innovation, pushing startups and talent overseas. In a country with thousands of tech startups, a thriving ecosystem, and globally leading talent, the crypto industry expects balanced taxation, clear compliance frameworks, and innovation-friendly policies. These are crucial to ensuring India remains in the forefront. The finance ministry and the RBI must mitigate risks without stifling growth. A progressive approach will unlock massive economic potential, create jobs, and solidify India’s position as a global leader in Web3 innovation."
Drone Industry Growth and Cybersecurity
Sai Pattabiram, Founder and MD of Zuppa Geo Navigation Technologies, urges the government to support the drone industry. According to Sai, "The demand for secure non-Chinese drones is growing the world over and more so in India. India has the opportunity to leverage its own domestic consumption and global reputation as a trustworthy technology partner built by the IT sector to evolve into a global drone hub. This can only be achieved by India moving deeper into the component level supply chain from the current assembly of imported components level that it is in today. Drone cybersecurity is turning out to be an absolute must-have for India in particular and global users in general especially after the often quoted electronic warfare threats in Ukraine and the Hezbollah pager attack in Lebanon.”
Fintech and Digital Payments Boost
Rohith Reji, Co-founder and CEO of Neokred, highlights the importance of incentivizing digital payments and expanding financial inclusion through digital means. He states, "The upcoming Union Budget presents a critical juncture for India's fast rising fintech and digital payments ecosystem. We anticipate measures that further incentivize digital transactions, potentially through tax breaks or subsidies for digital payment platforms and users. Additionally, a focus on enhancing financial inclusion through digital means, including expanding access to credit and insurance products through digital channels, would be a welcome step. We also expect the government to address the evolving regulatory landscape for fintech especially the DPDP Act, fostering innovation while ensuring consumer protection and financial stability."
Targeted Reforms to Drive Retail Sector Growth
Neeti Sharma, CEO of TeamLease Digital emphasizes the critical need of targeted reforms for boosting retail sector growth. Neeti says, “The retail sector is looking to the government for targeted reforms that can drive consumption and economic resilience. Key measures such as low-interest financing, tax relief, and an accelerated rollout of the National Retail Policy are expected to address structural gaps and enhance ease of doing business. These changes will foster growth and formalisation within the sector, while boosting consumer sentiment. Additionally, extending MSME benefits to retail and wholesale traders, alongside recognizing the F&B retail sector as an essential service, will be pivotal in supporting broader economic objectives and strengthening sectoral growth."
Gen AI and Cloud Innovation
Joseph Sudheer Thumma, Global Chief Executive Officer & Managing Director, Magellanic Cloud emphasized the need for the Union Budget 2025 to prioritize innovation, R&D, and digital infrastructure. He said, “In an era of rapid Gen AI, and cloud computing, we expect the government’s upcoming budget to prioritize policies that foster innovation and address the evolving needs of the tech sector. This includes continued support for R&D in cutting-edge technologies, initiatives to bridge the digital divide and enhance digital literacy, and a focus on developing a robust infrastructure to safeguard our digital assets. We believe these measures will be crucial for India to maintain its competitive edge in the global technology landscape."
Boosting AI Talent Development
Rajnish Gupta, Managing Director & Country Manager, Tenable India calls for larger budget allocations for R&D and skill development initiatives. Rajnish notes, “A larger budgetary allocation is needed to fund comprehensive awareness campaigns, training initiatives, and upskilling programs. Partnerships with leading educational institutions can help develop specialized curricula that prepare talent for an AI-driven future. Additionally, government funding could incentivize the private sector to invest in robust skill development programs, attracting more talent to the industry and creating a resilient talent pipeline.”
“Investing in public-private partnerships is another vital step. Collaborative efforts between industry and government to roll out skill development initiatives in universities, coupled with internship opportunities for engineering students, can attract young professionals at scale and strengthen the talent pipeline for the cybersecurity sector,” Rajnish concludes.
Investment to Fuel Startup Growth
Raj K Gopalakrishnan, Co-Founder & CEO, KOGO emphasizes the need for a dedicated fund to support deep-tech startups. He says, “As the 2025-26 Union budget announcement approaches, it is critical for the government to create a Deep Tech Fund to enable equity funding for startups looking for investments. A Deep Tech Fund with provisions for matching capital will encourage more investment into the sector. This will put India on the map for driving AI innovation and exporting it across the world.”
He further adds, “Deep tech startups in India can benefit greatly if a common framework is created for businesses in the ecosystem and make way for a two-tiered funding approach — for the proof of concept and for a tested prototype. Startups driving AI innovations can also benefit from the government allowing CSR contributions to flow towards startup incubators or R&D projects in the STEM fields. This can drive greater investments into the technology ecosystem, and bridge the existing skills shortage, which has to be addressed with great speed. The implementation of a National Deep Tech Startup Policy, which addressed the challenges faced by these businesses in India, will also go a long way in promoting ease of doing business."
Strengthening Urban Infrastructure & Innovation
Sandeep Agarwal, India MD & Global CTO, Visionet urges the government to focus on strengthening urban infrastructure. Sandeep asserts, “At Visionet, we believe that the Union budget for 2025-26 has to be oriented more towards the urban infrastructure and metro programs since these will be critical to the development of smart cities, facilitating connectivity and improving urban transport. At the same time, in case the ministry of finance sets aside resources for industry-academia research partnerships, that will enable game-changing developments across various fields such as medicine, education and production, thus placing India among the leaders in the global technology ecosystem.”
“Equally important, is the government’s effort in providing manufacturing incentives to the economy with special focus on the MSME sector which would help build the country’s manufacturing capacities and foster more competitiveness in the environment. On the social front, the increase of preventive healthcare and reduction of import tariffs on advanced medical devices in particular, will not only enhance the public health status but also ensure that high quality treatment becomes affordable and accessible to many,” Sandeep concludes.
Green Energy Focus in 2025 Budget
Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems advocates for greater subsidies for solar power and funding for research into energy storage solutions. Sanchit expressed, "We are eager for the Union Budget 2025 to include measures that support the transition to green energy, such as subsidies for adopting renewable energy. Additionally, we hope to see a greater allocation of funds for research and development in energy storage solutions. Incentives for solar power will also be vital for reaching energy independence. We anticipate that these requests will be addressed in the upcoming Union Budget 2025."
Conclusion
With India’s tech and startup ecosystems rapidly evolving, the expectations from Union Budget 2025 reflect the urgent need for policies that foster innovation, sustainability, and inclusivity. Industry leaders are optimistic that the government will address their concerns and provide the necessary support to drive growth and transform India into a global leader in various technological domains.
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