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Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 has drawn mixed reactions from technology industry leaders, particularly on the government’s push for deep tech and AI-driven innovation. While the ₹20,000 crore R&D allocation and the introduction of a Deep Tech Fund are expected to fuel homegrown innovation, the plan to expand Global Capability Centers (GCCs) into tier-2 cities is seen as a move to strengthen India’s global competitiveness in emerging technologies.
Read the Union budget reactions from the Technology sector in detail:
Lalit Ahuja, CEO, ANSR
The proposed framework for expanding Global Capability Centers into tier-2 cities introduced by the Finance Minister marks a strategic pivot in India’s tech evolution and the recognition of the immense potential of GCCs as a force multiplier to our economic growth. With 80% of global firms yet to establish GCCs in India, this initiative unlocks tremendous potential for transforming India’s attractiveness as the global GCC capital, while creating millions of skilled jobs across the country’s emerging urban centers.
As a global market leader in the GCC industry, ANSR is a huge proponent of the expansion of GCC markets to emerging Tier-2 cities. ANSR has partnered with organizations such as KDEM, GIFT City, and several state governments to amplify the GCC expansion to Tier-2 cities.
It’s truly heartening to see the Finance Minister acknowledge the GCC industry in this year’s budget. This recognition marks a pivotal moment for our sector, poised to break through the sound barrier of growth and emerge as a vital component of India’s IT landscape. The proposed national framework will be instrumental in unlocking the potential of tier 2 cities, driving the next wave of growth, and enabling us to build a robust talent supply engine that fuels innovation and excellence.
Jeenendra Bhandari, Chairman of JITO Incubation and Innovation Foundation (JIIF)
With China aggressively expanding its AI capabilities and the U.S. maintaining its dominance, India cannot afford to lag behind. Deep tech is no longer an option; it is the need of the hour. The government’s commitment—allocating ₹20,000 crore for private-sector-driven R&D and proposing a Deep Tech Fund—signals a crucial shift toward fostering homegrown innovation.
With alternative investment funds already receiving commitments of over ₹91,000 crore and an additional ₹10,000 crore Fund of Funds on the way, we have a unique opportunity to build world-class startups in AI, quantum computing, and advanced manufacturing.
Sarvagya Mishra, Founder & Director, Superbot
The Union Budget 2025 announcement has touched upon pivotal aspects to push the next wave of growth in India. We particularly commend the announcement of the Centre of Excellence for AI In Education, to be established with an outlay of INR 500 CR. Furthermore, the move to set up the Deeptech Fund of Funds and establish 5 new IITs after 2015, is another significant move, directed at boosting innovation in the space of AI and Tech. We commend the budget for its forward-looking measures and look forward to contributing towards India’s emergence as a global leader in the space of AI, Tech, and Innovation.