The IT and tech industry has outlined its wishlist for the upcoming Union Budget 2025, with artificial intelligence (AI) taking center stage. Expectations include expanded investments in AI infrastructure, clear ethical guidelines for AI development, and tax incentives for startups and companies focused on AI and emerging technology training programs. Following last year’s Rs 10,000 crore allocation to the India AI Mission, industry leaders are optimistic about further government measures to accelerate innovation in the sector.
Read the Union budget 2025 expectations in detail from the IT and Technology sectors:
Girish Hirde, Global Delivery Head, InfoVision
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, the 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. We also anticipate increased allocation for cybersecurity to strengthen India’s digital defenses, enhanced funding for AI and deep-tech startups, and incentives for AI integration across sectors like healthcare, agriculture, and manufacturing. By focusing on these areas, Budget 2025 can lay the foundation for India to lead in the AI era, creating sustainable job opportunities and driving optimal growth in the digital.
Sauvik Banerjjee, MD & CEO, Ziki & Sirrus Ai
Emphasis on data security and emerging technologies is crucial for India’s technology evolution. As we look forward to Union Budget 2025-26, I believe Artificial Intelligence (AI) will find special mention this time, building on the Rs 10,000 crore allocated for the India AI Mission in March 2024.
The government could further strengthen the tech ecosystem in the country by offering tax incentives for AI-based startups. Additionally, allocating resources for the establishment of AI research centers, besides launching upskilling programs, could help us bridge the talent gap in the sector, positioning India as a global leader in AI technology.
Jahnvi S, Director, Co-Founder & CFO, Livey Technologies
The upcoming Union Budget should prioritize increased funding to accelerate AI-driven growth in India’s electronics sector. With India aiming for US$ 300 billion in electronics manufacturing and US$ 120 billion in exports by 2025-26, and AI set to contribute US$ 450-500 billion to GDP by 2025, higher budget allocation is critical.
This will have ripple effects on complementary industries such as IT/BPO services, customer care call centers, co-working spaces, and the gaming industry. These sectors, interrelated to the growth of electronics and AI, will benefit significantly as advancements in technology enhance workplace efficiency and productivity. It will also drive exports, ensuring India stays on track to meet its US$ 5 trillion GDP target.
Rajul Tandon, Founder and CEO, Enalytix
India’s IT sector has traditionally thrived on services, but in line with the Honourable Prime Minister’s Make in India vision, it is time to shift focus towards product development, particularly in emerging technologies like AI. To support this transformation, the upcoming Union Budget should introduce measures that foster innovation and global competitiveness in Indian IT products.
Key initiatives could include creating a catalogue of Made-in-India products, particularly in AI, to enhance their visibility in international markets. Additionally, offering export incentives will encourage companies to scale their product offerings globally. Providing tax benefits on product revenues, especially from AI, will help reinvest in research and development, driving further innovation.
These steps will not only establish India as a global leader in AI products but will also boost exports, create jobs, and significantly contribute to the country’s technological advancement on the world stage.
Samyak Jain, Co-founder & CEO, Zeko AI
With India becoming the digital-first economy and a powerhouse of technological advancements and adoption, the upcoming budget holds great importance for startups in the technology and AI sectors. As a tech startup, we hope to see investment initiatives that nourish innovation and boost AI infrastructure, startups working towards developing new technologies, and research and development. Support in streamlining data compliance will empower software startups.
AI adoption policies across sectors and investments in robust AI/data skills training are vital for a globally competitive tech-driven workforce. Finally, easy access to private funding and reduced compliance burdens for startups will accelerate growth and global scaling. This budget must empower India’s tech future.
Rohan Bhargava, Co-Founder, CashKaro and EarnKaro
As we approach Budget 2025, the government needs to focus on increasing investment in research and development for emerging technologies such as AI, 5G, and semiconductors. This will not only foster innovation but also attract top talent to India.
Additionally, skilling initiatives focused on digital technologies will act as an important bridge to prepare our workforce for the future of work and address the rising demand for skilled professionals. A strong data protection framework will further play a vital role in building consumer trust and enabling responsible data usage, laying the foundation for sustainable growth and innovation in the digital economy.
Sanjay Sehgal, Founder, Chairman and CEO, MSys Technologies
Among the key expectations of the tech sector from the upcoming Union Budget 2025 is a more favorable policy framework towards digital transformation and AI adoption. The industry is also vying for more investment in sustainable digitalization that will help foster innovation without harming the environment. Tax breaks and R&D grants are high on the agenda of the tech industry, which is likely to contribute $1 trillion to the economy by 2027.
Further, a dedicated focus on creating a supportive policy environment through tax incentives, access to affordable finance, and streamlining the regulatory framework to encourage the technology solutions sector exports will be instrumental in solidifying India’s position as a global leader amidst rising competition from peer nations.
The thrust for greener initiatives is expected to help tech space emerge more assertive on the sustainability front. The ongoing favorable policy regime towards fintech should also continue in the upcoming budget proposal.