With the Union Budget 2025-26 just around the corner, optimism runs high in the Indian ICT sector. Industry leaders are hopeful that Finance Minister Ms. Nirmala Sitharaman will introduce forward-looking financial policies to drive significant growth in the upcoming fiscal year. As the sector eagerly awaits impactful reforms, here's a glimpse into what key ICT leaders are looking forward to in this year’s budget.
AI and Technological Infrastructure
Vinay Chhabra, Co-Founder & Managing Director, AceCloud envisions a budget that drives India’s ascent as a hub for artificial intelligence and GPU technologies. He says, “The year 2024 brought in profound changes to India and world as AI reshaped the world as we knew it. India, in particular, emerged as a promising hub for AI and GPU advancements. To maintain this upward trajectory, it is essential to invest in the country’s technological infrastructure, and a forward-thinking, tech-driven budget is the key to achieving this. We look forward to strategic initiatives that go beyond traditional tax incentives. These could include a dedicated fund to drive AI research and innovation, enhanced allocations for the IndiaAI mission, and incentives to bolster domestic manufacturing of GPUs and high-performance computing components.”
Vinay further states, “India’s growing digital economy requires robust cloud and data infrastructure. Incentives for establishing data centers and edge computing facilities will play a critical role in meeting this demand. Additionally, sector-specific programs aimed at startups and SMEs, particularly to facilitate access to affordable GPU-powered computing, can act as catalysts for their growth and innovation. Further, we believe that the workforce of the future will depend on targeted skill development programs. We expect collaborative efforts between the government, private sector, and academia to upskill professionals in AI, cloud computing, and related domains. This will not only bridge the skill gap but also empower India’s talent pool to leverage next-gen technologies effectively.”
Manufacturing and Innovation
Arjun Bajaj, Director, Videotex highlights the importance of creating a strong local ecosystem for television manufacturing. According to Arjun, "The television manufacturing industry has long advocated for the implementation of the PLI scheme and the development of a local ecosystem for critical components such as displays and semiconductors. Additionally, the current 28% GST on 40 inch and larger TVs, which are classified as luxury goods, should be re-evaluated, as these products have become essential. Removing this tax could stimulate sales and benefit the industry. Support for export promotion would unlock new business opportunities. Moreover, the focus should shift from solely expanding manufacturing capabilities to fostering R&D, product innovation, and enhancing operational and production efficiencies. It is also crucial that the government refrains from increasing the import duty on open cell components to help maintain the cost of the final product."
Education and Digital Transformation
Chitranshu Mahant, CEO, Primebook envisions a budget that bridges the gap between education and technology. Chitranshu asserts, “As India strides to become the global powerhouse of education and technology, we look forward to the government formulating a budget in 2025 that can strengthen the synergy between edtech and domestic manufacturing. Increased budget for setting up digital infrastructure in schools and colleges, particularly rural and semi-urban areas, coupled with government-backed initiatives to provide affordable and reliable internet access in those areas and the introduction of more subsidized data plans, can truly accelerate the nation’s digital transformation from the grass-root level.”
Chitranshu further adds, “Expanding the scope of PLI schemes to encompass consumer electronics tailored for education can boost the “Make in India” initiative and generate more employment opportunities for the youth. The increasing demand for affordable laptops highly calls for reduced import duties, incentives for local production, and rationalization of taxes. We urge the government to acknowledge and adopt such measures. Through the establishment of innovation funds for startups developing affordable education technology and hardware, especially those that function independently of broadband infrastructure and promote on-the learning, and further reducing the GST rates for educational devices and software, the government can empower millions of students, educators, and parents to efficiently embrace tech-driven learning.”
Semiconductors and 'Design Led Manufacturing'
Vivek Tyagi, Managing Director, Analog Devices India calls for enhanced policies to support India’s semiconductor ecosystem. Vivek states, “As we stand at the cusp of transformative growth in India's semiconductor sector, this year's Union Budget holds the potential to be a defining moment in realizing our aspirations. The ongoing PLI schemes have laid the foundation for a robust manufacturing ecosystem, however, as India reaches a pivotal stage in its journey toward becoming a global manufacturing hub, we need to further enhance these initiatives towards an end-to-end supply chain ecosystem. The focus must now shift to strengthening these policies and placing greater emphasis on promoting 'Design led manufacturing’ schemes to enhance the operations within our borders. Building India's design capabilities will be crucial for nurturing the skills needed to drive innovation, create intellectual property, and establish a vibrant semiconductor ecosystem.”
“I firmly believe this year's budget will enable India to transition from being merely a consumer of semiconductors and an assembler of products to becoming a global leader in the design and manufacturing of high-end components. This shift will not only advance our technological capabilities but will also unlock immense economic potential, positioning India firmly on the global semiconductor map and propelling us towards the vision of a ‘Viksit Bharat,” concludes Vivek.
Reducing GST on Televisions
Pallavi Singh, Country Representative, JVC TV India emphasizes on the need to reduce tax rates. She says, "I urge the Finance Minister to reduce the GST on televisions from 28% to 18%. Televisions should not be treated as luxury items, and the current tax rate is excessive. Raw materials are taxed at 18%, while finished products like televisions are taxed at 28%, creating an imbalance and burdening importers. Aligning tax rates would simplify the structure and reduce costs for manufacturers and consumers.”
Focus on Digital India’s Growth
Arijeet Talapatra, CEO of itel India sees the budget as an opportunity to accelerate growth in electronics and smartphone manufacturing. Arijeet comments, "The upcoming Union Budget holds immense potential to accelerate growth in the electronics and smartphone manufacturing industries. Expanding the PLI program to include semiconductors, high-capacity batteries, and display technologies will strengthen India’s value chain, reduce imports, and enhance our global competitiveness. Focused R&D grants for emerging technologies such as AI and IoT will be a much-needed boost – a significant step towards making India a Vishwaguru in the electronics ecosystem.”
“The growing aspirations of India’s youth, driven by their pursuit of innovation, entrepreneurship, and a digital-first future, underscore the urgent need for robust cybersecurity measures and cutting-edge 5G infrastructure. Prioritizing investments in 5G infrastructure and cybersecurity will further support Digital India’s growth by enabling innovation, safeguarding critical systems, and unlocking opportunities across sectors like healthcare and smart cities," Arijeet concludes.
Bridging the Digital Divide
Varun Babbar, Managing Director - India & SAARC at Qlik highlights AI’s transformative potential across various sectors, including healthcare, finance, and education. “The upcoming Union Budget presents a unique opportunity to prioritize investments in AI research, skill development, and digital infrastructure. These initiatives will empower businesses to innovate and position India as a global leader in AI-driven economic growth. Qlik's recent AI survey highlights the significant potential of AI in transforming sectors such as healthcare, finance, manufacturing, and education, while also revealing challenges such as skill gaps, data governance issues, and trust deficits. To address these, targeted investment in AI skill development, R&D, and government-backed training programs is essential to bridge the talent gap and ensure responsible AI deployment,” he notes.
Driving Automation and Global IT Excellence
Arun Balasubramanian, VP & MD, UiPath, sees agentic automation and AI as catalysts for productivity. He says, “A key area for the GOI to make significant strides is investing in AI and agentic automation to enhance productivity and efficiency, which is crucial for our economic growth. Moreover, providing export incentives for Global Capability Centers (GCCs) will help boost our IT sector. This support will help these centers expand their operations and increase their contributions to India's export revenues. We also expect the GOI to increase investments in reskilling initiatives focused on AI, automation, IoT, data analytics, robotics and cloud computing. Such initiatives will be essential for India to become the world’s leader in software technology.”
Strengthening Domestic Manufacturing
Ravi Kunwar, VP & CEO, HMD India and APAC, highlights the transformative impact of the Production Linked Incentive (PLI) scheme. He adds, ““As we approach the Union Budget 2025, we see immense potential for policies that could strengthen India's position in the global mobile manufacturing landscape. The Production Linked Incentive (PLI) scheme has been a game-changer for domestic manufacturing and, we believe providing a boost to the PLI scheme with a focus on increasing local value addition to more than 18% is indispensable. Simultaneously, initiatives like these could support the localization of critical smartphone and feature phone components, as this aligns with both our business strategy and India's vision of technological self-reliance is something we as a brand are anticipating. The upcoming budget has the potential to strengthen domestic component manufacturing, particularly in the mobile segment. We look forward to policies that will boost indigenous production and create a more robust supply chain.”
Cybersecurity: A Cornerstone of Economic Growth
Rohan Vaidya, Area Vice President, SAARC & India at CyberArk emphasizes prioritizing cybersecurity in the upcoming budget. He adds, "The Union Budget presents a pivotal opportunity to prioritise cybersecurity as a cornerstone of the nation’s economic and technological growth. In order to secure critical infrastructure, digital ecosystems, and citizen data, we anticipate measures that promote investments in vital security solutions to align with India’s vision for a safe and resilient digital economy. Policies that further public-private collaboration, cybersecurity skill development, and strong regulatory frameworks will be essential given the increase in cyberthreats that target both the public & private sectors. With the implementation of the Digital Personal Data Protection (DPDP) Act, there is a clear imperative to strengthen frameworks for data protection norms. To realise the full potential of the DPDP Act, it would be reassuring to see budget policies that encourage adoption of advanced data protection technologies, promote investments in compliance infrastructure, and support awareness initiatives aimed at building a culture of data privacy."
Strengthening Digital Transformation
Sameer L. Kanodia, MD & CEO, Lumina Datamatics, highlights the IT/ITeS sector’s contribution to GDP and employment. He notes, “As we approach the upcoming budget, it is imperative to prioritize policies that accelerate growth, innovation, catalyze digital transformation, and attract robust investments in the IT/ITeS sector. Contributing nearly 8% to India’s GDP and employing over 5 million professionals, this sector remains a cornerstone of our economy. In this context, a forward-looking budget must address key enablers: simplifying regulatory frameworks, improving access to affordable capital, and advancing skill development in high-impact domains such as artificial intelligence, content enrichment, and e-commerce.”
Empowering Startups and Bridging the Digital Divide
Pramod Sharda, CEO, IceWarp India and Middle East, calls for GST reductions on enterprise technology and relaxed compliance for startups. “We hope the government continues to prioritize investments in digital infrastructure, particularly in Tier 2 and Tier 3 cities, to bridge the digital divide and unlock the untapped potential of these regions. A reduction in GST rates on enterprise technology solutions would encourage businesses to adopt advanced tools, boosting productivity and fostering innovation. We are optimistic that Budget 2025 will create a conducive environment for businesses to thrive in the ever-evolving digital landscape,” he concludes.
Drone Technology and Innovation
Ankit Mehta, CEO, ideaForge Technology Limited anticipates the launch of a PLI scheme 2.0 for drones, aimed at accelerating India’s self-reliance and global leadership in drone technology. He says, "As we approach the Union Budget 2025, we are optimistic about the potential launch of a production-linked incentive (PLI) scheme 2.0 for Drones to accelerate India's efforts towards self-reliance and global leadership in this technology. While the reported ₹500 crore outlay, is expected to extend beyond manufacturing to include services like drone leasing, indigenous software development, and counter-drone systems, it underscores the government’s holistic vision for this ecosystem. However, given the potential of the technology and the industry, we need a much larger scheme amounting to Rs. 1000-2000 Crs to unlock this opportunity over atleast 5 years.”
“In addition to a robust PLI scheme, an upfront R&D fund can be crucial to unlock opportunities for research, technological advancement, product development and exports, propelling India’s drone industry onto the global stage. At ideaForge, we remain committed to supporting this ecosystem through our cutting-edge UAVs while driving indigenization, which embody India’s strength in performance, reliability, and innovation in this space. This Budget has the potential to cement India’s position as a global leader in drone technology, driving long-term growth, creating high-value jobs, and ensuring technological sovereignty," Ankit concludes.
A Step Towards India's Digital Innovation Hub
Venkatraman Narayanan, Managing Director & CFO, Happiest Minds, hopes for policies that boost India's journey towards becoming a global digital innovation hub. He comments, "As we approach the Union Budget 2025, we hope for policy measures that accelerate India's journey towards becoming a global digital innovation hub. All action taken to strengthen our domestic economy, more money into Capex, reduction of taxes on the individual tax payer thus putting money into his hands and eventually driving consumption, simplification of tax procedures, both direct and indirect, and reduction in the compliance burden would really put us back on the path of continued growth.”
Venkatraman also says, “Incentives and steps to strengthen our digital infrastructure, reskilling programs will not only prepare the workforce for the future but also ensure equitable growth. A budget that fosters an environment of mindful growth and global competitiveness will significantly contribute to India's leadership in the digital economy."
Cybersecurity and Skill Development
Sunil Sapra, Co-Founder & Chief Growth Officer, Eventus Security calls for a comprehensive cybersecurity strategy in the Union Budget to address emerging cyber threats. Sunil adds, "With the upcoming Union Budget, we anticipate a continued focus on strengthening India's cybersecurity framework. As cyber threats evolve, it's imperative for the government to prioritize investments in cybersecurity infrastructure and initiatives that enhance national resilience against emerging cyberattacks. Public-private partnerships will be instrumental in driving innovation and ensuring that organizations, especially SMEs, gain equitable access to the advanced security technologies. Further, it is important to include provisions that support skill development in the cybersecurity sector nurturing a robust talent pool capable of safeguarding our digital ecosystem.
Sunil further comments, “The increased adoption of AI and machine learning for threat detection and response also presents an opportunity to scale up our defense mechanisms. A forward-looking, holistic cybersecurity strategy in this year's budget will not only secure India's digital future but also act as a catalyst for sustained economic growth and global competitiveness."
Digital Marketing and Talent Development
Prady, CEO and Co-Founder, NP Digital India envisions a budget that supports the digital marketing industry through investment in infrastructure and incentives for AI-driven solutions. According to Prady, “The digital marketing industry in India faces key challenges, including the rising cost of advertising due to inflation, limited access to advanced AI and data analytics tools for smaller businesses, and the need for a stronger regulatory framework around data privacy. Advertisers are looking for government support in the form of incentives for digital adoption, increased funding for technology upskilling, and policies that promote a fair and transparent advertising ecosystem.”
Prady also states, “From the Union Budget 2025-26, we expect three key measures: First, increased investment in digital infrastructure to ensure widespread connectivity and access to emerging technologies. Second, incentives for adopting AI-driven solutions, which are crucial for data-driven decision-making in marketing. Third, tax breaks or subsidies for upskilling initiatives aimed at enhancing the capabilities of marketing professionals. These steps are essential to empower businesses, improve campaign effectiveness, and bridge the talent gap in this fast-evolving sector.”
“The government should focus on fostering a startup-friendly ecosystem, enhancing MSME support, and incentivizing innovation in technology. A robust digital economy will not only drive economic growth but also position India as a global leader in technology and marketing services,” Prady concludes.
Accelerating Cloud Adoption and OTT Solutions
Vineet Dhawan, CEO, Digital Convergence Technologies, expects enhanced incentives for cloud migration, cybersecurity, and IT exports. "The technology sector is optimistic about policies that will catalyze innovation, support growth, and strengthen India's position as a global tech hub. The rapid adoption of cloud migration, cybersecurity, and OTT video management solutions like our own dcafe’ underscores the need for a robust digital infrastructure backed by forward-looking reforms. We hope for enhanced incentives to accelerate digital transformation for businesses, support for Global Capability Centers (GCCs) to drive employment and innovation, and clear guidelines to strengthen data security frameworks. Simplified taxation structures for IT exports and R&D investments will further encourage companies to innovate and expand,” he says.
Transforming Healthcare Education
Gerald Jaideep, CEO, Medvarsity, advocates policies supporting healthcare upskilling and digital learning infrastructure. "As we anticipate the 2025 Union Budget, there is a strong need for policies that support the growth of digital healthcare education and skilling in India. Initiatives such as tax incentives for organizations investing in healthcare upskilling, funding for digital learning infrastructure, and promoting public-private partnerships can play a transformative role. Additionally, prioritizing innovation and technology in healthcare education will help bridge skill gaps and ensure a future-ready workforce. We hope for a budget that empowers the healthcare ed-tech sector to drive meaningful and scalable impact across the nation," he asserts.
AI and Digital Transformation at the Forefront
Srividya Kannan, Founder and CEO of Avaali Solutions, underscores the importance of creating a robust ecosystem for AI adoption. He says, “The 2025 Union Budget should focus on creating a robust ecosystem that incentivizes the adoption and development of AI across industries while empowering the tech workforce through structured learning initiatives. It is vital for the government to support R&D and innovation in AI so that India solidifies its position as a global leader in technology innovation. I’m keen to see the government allocate subsidies, incentives, or grants specifically for developing AI-driven solutions. Policies supporting R&D in AI applications, particularly for enhancing automation, improving efficiencies, and enabling data-driven decision-making, will give Indian businesses a competitive edge in global markets.”
Increased Budget Allocations for Cybersecurity
Pinkesh Kotecha, Chairman and MD at Ishan Technologies expect increased allocations for the cybersecurity to position India as a global leader. He states, "As Budget 2025 approaches, we look forward to measures that will position India as a global digital leader. Cybersecurity must be a priority, with increased budget allocations to build secure digital ecosystems and encourage public-private partnerships. India’s growing reputation as a trusted partner for global capability centers (GCCs) is another key area to build upon. The budget could promote this by offering incentives for GCC development, simplifying processes for businesses, and creating an environment conducive to innovation. Budget 2025 could play a pivotal role by supporting green energy adoption, energy-efficient technologies, and research into low-impact cooling solutions, ensuring sustainable growth in this sector. Moreover, a clear regulatory framework for AI is needed to balance innovation with ethical and safety standards.”
Investing in Next-gen Technologies for Global Competitiveness
Girish Hirde, Global Delivery Head at InfoVision emphasizes the need for robust AI infrastructure. He notes, “As we approach Union Budget 2025, InfoVision anticipates a forward-looking agenda that addresses the transformative potential of AI and other cutting-edge technologies. We expect robust provisions to maintain India's global competitiveness in the rapidly evolving tech landscape. Key areas we hope to see addressed include investments in AI infrastructure, establishment of clear ethical guidelines for AI development, and tax incentives for companies investing in AI and emerging tech training programs. Furthermore, we look forward to support for telecom advancements, particularly in 5G and 6G infrastructure, which are crucial for enabling AI and IoT applications at scale.”
Smart Technologies Building India’s Future-Ready Economy
Kishan Jain, Director of Goldmedal Electricals calls for policies promoting smart technologies such as IoT and automation while prioritizing sustainability. “This Budget has the potential to consolidate India's status as a global manufacturing hub by implementing policies to encourage innovation and sustainability across industries. With infrastructure development serving as the foundation for economic growth, it is critical to prioritize investments in smart technologies like automation, and IoT. Policies that promote local production and streamline regulations can increase efficiency, reduce reliance on imports, and provide job opportunities. The Budget also provides an important chance to address sustainability issues by encouraging the use of environmentally friendly technologies and energy-efficient practices,” he states.
Simplified PLI Schemes Catalysts for Economic Growth
Rajesh Jain, CFO of RR Kabel anticipates measures to boost infrastructure development. He says, “As we approach the Union Budget 2025-26, there is great anticipation for policies that can shape a forward-looking roadmap for India's economic growth. This Budget has the potential to catalyze infrastructure development, support the transition to sustainable energy solutions, and enhance the competitiveness of domestic manufacturing under initiatives like 'Make in India.' The electrical and electronics sector plays a critical role in driving safety, efficiency, and sustainability across residential, commercial, and industrial applications. Measures that simplify tariff structures, expand the scope of Production Linked Incentive (PLI) schemes, and encourage investment in energy-efficient infrastructure will be instrumental in strengthening India's position as a global manufacturing hub.”
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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