Finance Minister Nirmala Sitharaman has presented the Union Budget 2025 in Parliament, introducing key initiatives to accelerate growth in the technology sector. The budget has drawn varied responses from tech industry leaders, reflecting its potential impact on India’s digital transformation. As the nation strengthens its position as a global tech hub, experts weigh in on how these measures will shape the future of the IT sector.
AI Investments for Future-Ready India
Rajeev Singh, Managing Director, BenQ India and South Asia, welcomes the Union Budget’s focus on manufacturing, skilling, and AI-led education to drive technological growth. According to Rajeev, “We are encouraged by the government's announcement of the National Manufacturing Mission, which represents a significant step towards enhancing the 'Make in India' initiative. This mission's focus on supporting small, medium, and large industries, along with its emphasis on clean technology manufacturing, aligns perfectly with our commitment to sustainability and innovation. Further, the decision to increase the basic customs duty on interactive flat panel displays is a crucial step in addressing the inverted duty structure. This move will foster local manufacturing and support the growing demand for advanced educational technologies, ultimately enhancing innovation in learning environments.”
Rajeev further praises the National CoE for skilling, stating, “Moreover, the announcement of five National Centers of Excellence for Skilling as well as the setup of 50,000 adult tinkering labs in government schools presents a significant opportunity to integrate advanced technologies, such as interactive flat panel displays (IFP), into the educational framework. These centers will not only equip our youth with essential skills required for manufacturing under the 'Make in India' initiative but also leverage global expertise to design curricula that meet industry needs.”
“The establishment of a Centre of Excellence for AI in education with a ₹500 crore investment is another vital step towards preparing our youth for future challenges. By fostering skills in AI and related technologies, we can enhance employability and drive innovation across various sectors. Thus, we believe that with the right policy support and a robust ecosystem for electronic components, India can establish itself as a global hub for advanced technologies. We look forward to collaborating with the government and industry stakeholders to capitalize on these opportunities and contribute to India's digital transformation,” Rajeev concludes.
Greater GST Relief
Arjun Bajaj, Director, Videotex, acknowledges the budget’s support for electronics manufacturing but highlights challenges in local sourcing and taxation policies. Arjun states, “"The Union Budget 2025 marks a significant push toward supporting the electronics manufacturing sector, but some key areas could have been more impactful. The drop in Basic Customs Duty (BCD) from 2.5% to 0% on parts of the panel is a welcome move, though it should be noted that there is only one facility in India with limited capacity to process these parts. This change will primarily benefit that facility and those sourcing from it. The ongoing reliance on imported open cells, due to a lack of local manufacturing capacity, remains a critical challenge.”
“A more substantial reduction in BCD—perhaps on more components—could have better supported the sector's growth. While this adjustment can be seen as a long-term strategy to attract more key players and build local facilities, the challenges of significant investments and resource tie-ups for localization persist. Furthermore, the decision not to reduce GST on televisions in this budget is disappointing, as such a move could have been a game-changer in boosting TV sales. On a positive note, the enhanced income tax slabs provide a potential boost to the disposable income of middle-class families, which could help drive demand and offer a much-needed uplift to the sector,” Arjun notes.
Push for Electronics Manufacturing
Ravi Kunwar, VP and CEO, HMD India and APAC, commends the Union Budget’s commitment to self-reliance, job creation, and sustainable growth in the electronics sector. He asserts, “The Union Budget 2025-26 presents encouraging prospects for the technology and digital infrastructure sector. We applaud the Indian Government for reinforcing India's vision for self-reliance and innovation-driven growth in electronics manufacturing. Reducing BCD to 5% on open cell components and including 28 additional capital goods for mobile battery fabrication will strengthen local manufacturing and further generate employment in the sector. The formation of the National Manufacturing Mission and investment in skilling initiatives will contribute to India's global competitiveness and facilitate the commitment to climate-friendly development. These measures, coupled with tax reforms and incentives, create a strong foundation for sustainable growth in India’s electronics ecosystem.”
Remarkable AI-driven Educational Initiatives
Varun Babbar, Managing Director - India, Qlik, welcomes the government’s AI-driven educational initiatives and workforce upskilling measures. Varun comments, “The Finance Minister’s announcement of a Centre of Excellence in AI for Education with an outlay of ₹500 crore is a commendable step toward strengthening India’s AI ecosystem. Qlik’s recent AI survey highlights that 79% of AI decision-makers see India leading in AI skills within five years, yet challenges like talent shortages, governance complexities, and trust issues continue to slow AI adoption. This initiative can play a pivotal role in bridging the AI skills gap, equipping future professionals with industry-relevant expertise, and fostering innovation. Additionally, the expansion of Atal Tinkering Labs, five National Centres of Excellence for skilling, and the National Framework for GCCs in tier-2 cities will create new opportunities for high-skilled jobs and strengthen India’s digital economy.”
Varun further says, “By focusing on upskilling, research, and responsible AI deployment, these initiatives will not only boost India's global AI competitiveness but also empower businesses with skilled talent to accelerate AI-driven transformation. At Qlik, we actively support this vision through our Qlik Academic Program, which provides students with hands-on analytics training to enhance employability and industry readiness. As India moves towards a $1 trillion digital economy, collaborative efforts between the government, businesses, and educational institutions will be crucial in building a future-ready workforce and ensuring AI drives meaningful transformation across industries.”
Deep Tech Focus for a Future-Ready Workforce
Dr. Priyanka Sharma, Head of MONAKA Software R&D Unit, Fujitsu Research of India, praises the Union Budget 2025 for its focus on upskilling, research, and inclusive entrepreneurship. Priyanka says, “Today's Union Budget 2025, focused on a 'Viksit Bharat,' presents a powerful vision for India's IT industry and its future workforce. I am particularly excited by the emphasis on skilling and upskilling initiatives. The establishment of five National Centers of Excellence, leveraging global partnerships, will directly address the growing demand for skilled professionals in areas crucial to building a tech-for-good India. The expansion of IITs and the new AI Center of Excellence for education will further strengthen this talent pipeline, ensuring India remains at the forefront of technological innovation.”
Dr. Priyanka further comments, “The budget's commitment to a Deep Tech Fund of Funds and the PM Research Fellowship scheme is equally significant. These initiatives will provide critical support for next-generation startups and research institutions, fostering a vibrant ecosystem of innovation and attracting top talent. The focus on supporting first-time entrepreneurs, particularly women is commendable and will contribute to a more inclusive and equitable growth tory. These investments in education, research, and entrepreneurship will not only benefit the IT sector but will drive India's overall economic transformation, creating a more prosperous and inclusive future for all. This budget signals a clear commitment to building a skilled and empowered workforce, ready to seize the opportunities of the future.”
Push for Electronics Manufacturing and Battery Innovation
CP Khandelwal, CEO, PR Innovation, Brand Custodian of Amazfit India, sees the Union Budget as a transformative step toward strengthening India’s electronics and wearables ecosystem. He comments, “The Budget 2025’s tech-forward policies signal India’s ambition to dominate the global electronics value chain. Eliminating BCD on open cell components for displays isn’t just a tariff tweak—it’s a strategic unlock. By making India a cost-competitive hub for advanced display manufacturing, we’re poised to cut reliance on imports for LCD/LED panels, which currently account for 80% of the $7 billion display market. This will catalyze local R&D in next-gen technologies like OLED and MicroLED, critical for smartphones, wearables, and smart TVs.”
“Equally transformative is the lithium-ion battery push. Adding 28 capital goods for mobile batteries will fast-track domestic cell manufacturing, addressing a critical gap where India imports 90% of its lithium-ion needs. For the wearables and smartphone ecosystem, this means shorter supply chains, faster innovation cycles, and sustainable cost efficiencies. India’s future will be driven by innovation, self-reliance, and a bold vision to lead the global tech revolution,” he concludes.
Forward Thinking Budget
Vishvesh Mishra, Product Marketing Manager, DeepCool commends the Union Budget 2025 for prioritizing AI, smart cities, and local manufacturing to boost IT sector growth. He said, "In my opinion, the Union Budget 2025 reflects a forward-thinking approach by the Indian government, emphasizing key areas poised to drive substantial growth in the IT industry. The significant focus on Artificial Intelligence (AI) is particularly commendable, as it positions India to become a global leader in AI technology. The allocation of over $1.2 billion to the AI sector, aimed at increasing computing capacity and financing local startups, underscores this commitment.”
Vishvesh further adds, “The expansion of smart cities is another strategic move that will likely bolster the IT sector. By integrating advanced technologies into urban planning, the government is paving the way for increased demand in IT services and infrastructure which will directly benefit a lot of local players in this industry. Relaxation of import duties on key components, such as printed circuit board assemblies and parts of camera modules, is a welcome step towards boosting local manufacturing. This move not only incentivize conventional industries like mobile, laptops and other handheld smart devices to boost production but also promotes DRAM industry to enhance their production capabilities in India hence strengthening the domestic manufacturing ecosystem while aiding in multiple job creations across various strata.”
“The reduction in personal income tax rates is a welcome measure, increasing disposable income for the middle class and potentially stimulating consumer spending. This boost in consumption is anticipated to have a positive ripple effect on the economy, contributing to a higher Gross Domestic Product (GDP). For companies like DeepCool, these developments present a significant opportunity. The surge in AI-driven startups and the expansion of data centers necessitate high-performance computing solutions, leading to a heightened demand for advanced cooling systems. DeepCool can leverage this growing market by providing state-of-the-art cooling and power solutions tailored to the needs of these emerging tech enterprises,” Vishvesh states.
“In summary, the Union Budget 2025 lays a robust foundation for the IT industry's growth, with its emphasis on AI, smart city development, support for local manufacturing, and initiatives to increase consumer spending. Companies attuned to these trends are well-positioned to thrive in this evolving landscape,” Vishvesh concluded.
Focused Budget on AI in Education
Gerald Jaideep, CEO, Medvarsity, highlights the Union Budget’s transformative vision for India’s healthcare and education ecosystems. He states, “The recent budget underscores a transformative vision for India’s healthcare and education ecosystems. The establishment of Centers of Excellence in AI for education, coupled with the aggressive expansion of medical seats, reflects a dual commitment to innovation and capacity-building. For the healthcare edtech sector, this budget opens avenues to collaborate with institutions in curriculum design, AI-driven training modules, and competency-based certifications. The future lies in synergizing policy ambition with industry expertise to build a workforce that is not only larger but also future-ready, adaptive, and globally competitive.”
Push for Digital Economy and MSME Growth
Srividya Kannan, CEO and Founder, Avaali Solutions, welcomes the government’s focus on digital expansion, skilling, and Make in India initiatives. Srividya comments, “A key decision by the government to drive the digital economy is the formation of a national framework for promoting Global Capability Centers (GCCs) in emerging Tier-II cities. This move is set to boost employment growth and position India as a hub for high-value global services. The government's plan to establish 50,000 Atal Tinkering Labs is a visionary step toward fostering a culture of innovation and entrepreneurship across the country. By integrating interventions at schools, universities, research institutions, MSMEs, and industries, this initiative will create a robust ecosystem for technological advancement. It is encouraging to see the government’s strategic focus on the digital economy and its commitment to building a future-ready workforce.”
“Investment in AI Centers of Excellence (CoEs) in education is a positive step toward the adoption of emerging technologies in key industries. Additionally, the expansion of infrastructure in the five IITs established after 2014, including increasing capacity for 6,500 more students and enhancing hostel and other facilities at IIT Patna, is a significant move toward strengthening India’s tech workforce. It is also promising to see the government extending support to the domestic equipment industry under the Make-in-India and National Manufacturing Mission. This initiative will empower local businesses and strengthen India’s position as a leader in next-generation manufacturing and technology. Moreover, it will create new opportunities for global electronic equipment companies to establish their captive centers in India. Also it is extremely heartening to see increase in the limits for classification of MSME and additional credit offerings to them. This will immensely help boost the Indian entrepreneurial ecosystem,” he notes.
Focused On Skill-Building For A Future-Ready Workforce
Ujjwal Sarin, Founder, Nu Republic, praises the Union Budget’s commitment to sustainable technology and skill-building for a future-ready workforce. He notes, “The Union Budget’s National Manufacturing Mission is a pivotal step in strengthening ‘Make in India’ through policy support and clean tech innovation. With a strong focus on domestic manufacturing of solar PV cells, EV batteries, and high-voltage equipment, India is set to lead in sustainable technology. Addressing the inverted duty structure, the increase in customs duty on interactive flat panel displays will boost local production and investment in advanced display technologies. Additionally, the establishment of five National Centers of Excellence for Skilling and a ₹500 crore AI Centre of Excellence in education will bridge the industry-academia gap, fostering a future-ready workforce. These initiatives reinforce India’s path to becoming a global leader in advanced manufacturing and digital innovation. We welcome these efforts and look forward to collaborating with stakeholders to drive technological self-reliance and growth.”
Catalyst for India’s Tech and Startup Boom
Joseph Sudheer Thumma, Global Chief Executive Officer & Managing Director, Magellanic Cloud, praises the Union Budget’s initiatives for AI, deep tech, and Industry 4.0-driven manufacturing. Joseph says, “The Union Budget paves the way for holistic and fast-paced rise of the country as an economic super house. Pertaining to technology industry, the provisions and initiatives announced to setting up of Centre of Excellence for AI as well as special fund focused on deep tech, will further place India at the global centre stage of revolution. With reference to focus on employment and skilling for the youth, the Union Budget provides the right impetus to gain industry-relevant skillsets and opportunities. Furthermore, the ecosystem also stands to benefit out of the opportunities arising for Industry 4.0 inclination for domestic manufacturing push with IoT and smart tech capabilities expected to gain prominence. Overall, the five engines of growth are well thought-off and the onus is on the industry to play its part.”
Catalyst for Agri-Tech and MSME Growth
Arjun Naik, Founder & CEO, Scandron, highlights the Union Budget’s emphasis on technology-driven agriculture and MSME expansion. Arjun comments, “With agriculture set to play a key role as part of the Dhan Dhanya Krishi Yogana and government laying special emphasis on the role of technology in achieving the objectives, new-age and emerging farming value chain elements such as drones have opportunity for a higher order of contribution to enhance agri-productivity as well as storage. Additionally, though not explicitly laid out in the Union Budget, however the farming community also have new livelihood avenues in form of farm technicians that can own the use of drones in the productivity value chain.”
“Overall, the Union Budget 2025 reinforces India’s commitment to “Make in India” and “Viksit Bharat,” with a strong push for manufacturing and MSME growth. With over 1 crore MSMEs driving 36% of manufacturing and 45% of exports, enhanced investment and turnover limits will empower them with scale, technology, and capital access. The National Manufacturing Mission will provide policy support and execution roadmaps, fostering an ecosystem where companies like Scandron can thrive,” Arjun concludes.
Push for Electronics and Clean-Tech Manufacturing
J S Gujral, Managing Director, Syrma SGS Technology, commends the Union Budget’s balanced approach to boosting India's manufacturing and electronics sector. He states, "The Union Budget 2025-26 presents a balanced approach to strengthening India's manufacturing and electronics sector. The National Manufacturing Mission announced, along with policy support for clean technology manufacturing, will further solidify India's position as a global manufacturing hub. The government's focus on domestic value addition, with a focus on manufacturing of EV batteries, solar PV cells, and electronics, is a step towards enhancing self-reliance and sustainability.”
“The emphasis on skill development through initiatives such as establishing National Centers of Excellence aligns with the need for a highly skilled workforce in Industry 4.0. This, along with targeted policies for MSME growth and global supply chain integration, will create new opportunities for businesses like ours. Additionally, the push for R&D and innovation with dedicated financial support will help drive advancements in emerging technologies. The government's continued commitment to improving ease of doing business through a modern, trust-based regulatory framework is a welcome move. Streamlining approvals, updating outdated regulations, and reducing compliance burdens will enable faster innovation and greater competitiveness for industries like electronics manufacturing,” he concludes.
Digital Infrastructure Boost
Manoj Kumar Singh, Director General, Digital Infrastructure Providers Association (DIPA), lauds the budget’s focus on digital transformation, MSME support, and ease of doing business. Manoj adds, “The Union Budget 2025-26 presents a comprehensive vision for accelerating India's journey towards Viksit Bharat through transformative digital infrastructure development and economic reforms. As the Director General of Digital Infrastructure Providers Association, I am particularly encouraged by the government's strategic initiatives that will catalyze growth across sectors. The reduction in basic customs duty on carrier-grade Ethernet switches from 20% to 10%, bringing them at par with non-carrier-grade switches, is a significant step that will resolve industry disputes while reducing infrastructure costs. This, combined with BharatTradeNet's introduction as a unified digital platform, demonstrates the government's commitment to building robust digital infrastructure and enhancing our global trade competitiveness.”
Manoj further says, “The budget's focus on MSMEs is particularly noteworthy, with the enhanced credit guarantee cover from ₹5 crore to ₹10 crore for micro-enterprises, injecting an additional ₹1.5 lakh crore credit over the next five years. The National Manufacturing Mission's support for clean tech manufacturing, especially in EV batteries and solar panels, along with customs duty exemptions on 35 additional goods, showcases a clear push towards sustainable development and domestic manufacturing capabilities. The rationalization of TDS rates and increased thresholds mark significant relief for taxpayers. The doubling of tax deduction limits on interest income for senior citizens to ₹1 lakh and the increase in TDS threshold on rent payments to ₹6 lakh annually reflect a citizen-centric approach. Furthermore, raising the income tax limit to ₹12 lakh under the new tax regime will boost consumer spending power and economic growth.”
“The comprehensive power sector reforms and increased state support for infrastructure development will strengthen the foundation needed for digital expansion, particularly in rural areas. The light-touch regulatory framework and emphasis on ease of doing business create an enabling environment for private sector participation and innovation. These progressive measures, coupled with the new Asset Monetization Plan 2025-30, create a robust ecosystem for sustainable growth in the digital infrastructure sector. DIPA is committed to working alongside the government in realizing the vision of a digitally advanced and prosperous India, ensuring that the benefits of digital transformation reach every corner of our nation,” Manoj concludes.
Focused on Healthcare & AI
Satish Kannan, Co-founder & CEO, MediBuddy, highlights how the Union Budget strengthens healthcare accessibility, AI-driven solutions, and insurance penetration. He says, “The Union Budget 2025-2026 takes some progressive steps toward strengthening India’s healthcare and startup ecosystem. The addition of 10,000 medical education seats in the next year and expansion plans for 75,000 seats over the next five years will help bridge the doctor-patient ratio gap, ensuring better healthcare access. Furthermore, the inclusion of 36 life-saving drugs under full customs duty exemption and healthcare coverage for gig workers under PM Jan Arogya Yojana will make quality medical treatment more affordable.”
Satish further adds, “he launch of AI Centres of Excellence, including those focused on healthcare, aligns with MediBuddy’s mission of leveraging AI-driven solutions for telemedicine, diagnostics, and personalised patient care. The increase in FDI limits for the insurance sector to 100% is a game-changer. This move will attract greater investment, foster innovation, and enhance the accessibility of insurance products, ensuring more Indians are covered under robust health insurance schemes. By allowing insurers to reinvest within the country, it will expand coverage, especially in underpenetrated segments of the population. This will enable digital healthcare platforms to collaborate more effectively with insurers, ensuring seamless access to health policies and cashless treatment.
“Additionally, the ₹10,000 crore expansion of the Fund of Funds for startups and the five-year extension for incorporation benefits provide much-needed capital and policy support. These measures will empower Indian startups to develop cutting-edge healthcare solutions, improve insurance penetration, and enhance digital healthcare accessibility. As India’s leading digital healthcare company, MediBuddy welcomes these forward-looking reforms and remains committed to making high-quality healthcare accessible to a billion people,” Satish stated.
Boost for Smart Urban Security and Digital Economy
Sudhindra Holla, Director of India & SAARC, Axis Communications, welcomes the Union Budget’s focus on urban development, security infrastructure, and digital transformation. Sudhindra asserts, "The Union Budget 2025 sets a transformative agenda that aligns with our vision for secure and smart urban environments. With a focus on urban development and agriculture, the budget's initiatives, such as the PM Dhan Dhyan Krishi Yojana aimed at enhancing crop yields, are crucial for fostering resilience in our food supply chains. This directly supports the security of critical infrastructure by ensuring stability in essential services.”
Sudhindra further added, “The focus on youth empowerment and women's welfare through targeted programs opens avenues for integrating advanced surveillance technologies. As we transition to a more digital economy, Axis Communications is dedicated to utilizing cutting-edge surveillance systems that enhance public safety and ensure robust data protection. The proposed regulatory reforms will also play a vital role in creating a conducive environment for innovation in security technologies. As we look forward, we believe that these budgetary measures will not only strengthen India's security landscape but also pave the way for sustainable growth in smart city projects across the nation."
Greater Focus On Data Centers
Pinkesh Kotecha, MD & Chairman, Ishan Technologies, commends the government’s push for AI, deep tech, and digital infrastructure but calls for greater focus on data centers. Pinkesh says, “The Union Budget 2025-26 lays a strong foundation for India’s digital-first economy, with a clear emphasis on AI, deep tech, and digital public infrastructure. The introduction of the Deep Tech Fund of Funds is a significant move to accelerate next-generation startups in AI, blockchain, and advanced computing, fostering innovation and global competitiveness. Expanding broadband access under BharatNet to rural schools and health centers is a critical step in bridging the digital divide and enhancing last-mile connectivity.”
“The establishment of a ₹500 crore Centre of Excellence in AI for Education reinforces India's commitment to AI-driven learning, ensuring a future-ready workforce. The National Framework for Global Capability Centers (GCCs) will further strengthen IT and outsourcing hubs in Tier-2 cities, driving infrastructure development and talent expansion. Additionally, with increased PPP support for digital infrastructure under the India Infrastructure Project Development Fund (IIPDF), private sector investments in broadband and connectivity are expected to gain momentum. Together, these initiatives position India as a leading player in the global digital economy, accelerating the adoption of AI, deep tech, and emerging technologies. However, areas like data centers required more focused policy support to establish India as a regional,” Pinkesh concludes.
Game-Changer for Esports Industry
Shiva Nandy, Founder and CEO, Skyesports, praises the Union Budget’s focus on AI, deep tech, and middle-class tax relief, which will boost India’s gaming ecosystem. Shiva says, "India’s gaming industry is on an exponential growth trajectory, and we are still only scratching the surface of its full potential. Initiatives like the Deep Tech Fund of Funds could present a significant opportunity to fuel homegrown innovation, supporting the creation of world-class games and esports titles from India. Coupled with the National Centres of Excellence for Skilling and the government’s focus on AI-driven innovation, we are poised to see a new wave of highly skilled professionals who can drive Indian gaming further on the global stage. Additionally, the tax relief for India’s middle class—our primary consumers of esports—will enable more discretionary spending on entertainment, further accelerating industry revenues. With India’s ARPU for midcore and hardcore games on the rise, initiatives like these will serve as catalysts, propelling the sector into its next phase of growth."
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