The technology sector expects that the Union government will continue to lay emphasis on enhancing the digital infrastructure in the country and also aim at making India a hub for Artificial Intelligence (AI). There should be continued support for AI startups and companies and also emphasis on Research and Development (R&D).
The sector expects continued tax rebates and subsidies for tech companies in the country. Besides that, there should be continued focus on job creation in the sector and skill building and development.
“We hope that the Union budget 2025 will give a great boost to AI research, development, and commercialization to drive job creation and economic growth. The government should consider supporting entrepreneurship in the field, by introducing tax rebates and subsidies for AI startups in the domain of healthcare, education, and governance – promoting AI innovation in solving real-world problems. Furthermore, provisions should also be in place for boosting the AI infrastructure, high-performance computing and skill-building in the domain. The government should also consider giving tax rebates to companies investing in skill-based hiring or upskilling initiatives,” pointed out Sarvagya Mishra, Founder and director at Superbot.
Stakeholders in the sector also feel that there should also be focus on promoting startup-specific investment funds or supporting tokenization models to enhance funding access to early-stage and growth-stage startups in the technology field in the country. There is also an opinion that the government should encourage startups to innovate in creating global models of excellence. Government initiatives in promoting global collaboration will help Indian startups gain recognition and prominence on a global stage.
It is expected that skill development and building a robust digital economy will be one of the key focuses of the budget as they are the pathways to make India a $1 trillion digital economy by 2028.
“This budget presents a vital opportunity to invest in the nation’s future and address the reskilling needs of over 65 per cent of the workforce in areas like AI, machine learning, and blockchain. The IT sector expects policy measures that enhance India’s position as a global technology leader. As a key contributor to GDP and employment, this budget can fuel innovation, foster talent, and further develop the digital ecosystem,” remarked Pradyumn Sharma, CEO of Pragati Software.
Also read
- Serendipity Arts Festival: AI is the art of the future
- Challenges abound, but India’s AI-driven drug discovery future looks bright, says ‘drug hunter’ Dr Riyaz Syed
- Death Clock app's AI can predict the date you'll pass away and financial experts are interested, here's why
- AI moves from experimental phase to deployment in India Inc
He further adds that a priority of this budget should be to increase support for upskilling and reskilling programmes. “Funding for industry-relevant training, in partnership with initiatives like Skill India and Digital India, will help bridge the talent gap and improve India’s global competitiveness. Tax reforms encouraging R&D investment in emerging technologies would stimulate innovation and position Indian companies as global tech leaders,” added Sharma.
The IT industry further hopes for more investments in digital infrastructure, particularly in Tier 2 and Tier 3 cities, as they are also crucial. There are also expectations that improving connectivity and internet access will unlock new talent pools, decentralize growth, and support the growing work-from-anywhere trend.
At the same time, there should be greater incentives for tech startups, particularly those in AI, SaaS and cybersecurity. Simplifying compliance and offering funding opportunities to accelerate growth in the startup ecosystem is also the need of the hour. There should also be an emphasis on promoting public-private partnerships in education and skill development that will help create a sustainable pipeline of technology professionals equipped for the future.
