The AI industry, already a key player in reshaping healthcare, education, agriculture, and manufacturing, anticipates robust government support in the upcoming budget
As the Union Budget 2025 approaches, stakeholders in the technology sector are voicing their expectations for strategic investments and policy reforms that could redefine India’s tech ecosystem. Artificial intelligence (AI), digital infrastructure, and regulatory enhancements dominate the wishlist of industry leaders, highlighting their potential to boost economic growth, innovation, and employment.
AI At Centre Of Transformation
The AI industry, already a key player in reshaping healthcare, education, agriculture, and manufacturing, anticipates robust government support in the upcoming budget. Saif Ahmad Khan, Founder of LEDSAK.AI, emphasises the need for increased funding for AI research and innovation. “Creating dedicated government-funded AI innovation centres could foster collaboration between academia, industries, and startups,” he said.
To further bolster AI’s growth, Khan suggests tax incentives for companies investing in AI technologies and measures to support domestic production of AI-specific hardware like GPUs and data processing units. This could reduce reliance on imports while enhancing India’s self-sufficiency in the sector.
He also highlights the importance of talent development, calling for budgetary allocations to train professionals in machine learning, robotics, and business analytics. Partnerships between universities and high-tech organisations could ensure India remains competitive in the global AI talent pool.
Khan stresses the role of AI in public governance, urging investments in AI-driven solutions for healthcare, farming, and government operations. “Adopting AI in the public sector can improve productivity and transparency while showcasing its potential to enhance public services,” he added.
Focus On R&D & Emerging Technologies
Manish Tewari, Co-Founder of Spydra Technologies, underscores the importance of prioritising research and development (R&D) in cutting-edge technologies such as AI, machine learning, quantum computing, and blockchain. “These technologies are poised to disrupt industries and elevate India’s status as a global tech powerhouse,” Tewari said.
He advocates for expanding digital infrastructure in Tier 2 and Tier 3 cities through broadband penetration, affordable 5G networks, and support for local tech startups. Tax benefits for technology-based startups and MSMEs could further enable growth, job creation, and economic inclusivity.
Additionally, Tewari calls for sustainability-focused initiatives, such as subsidies for green technologies, energy-efficient data centres, and renewable energy infrastructure, aligning with India’s environmental goals while fostering economic growth.
Digital Infrastructure & Mobile Advertising
With mobile advertising emerging as a significant contributor to the digital economy, Abhishek Tiwari, Global Business Head at NetSetGo Media, highlights the importance of enhancing digital infrastructure. “A robust 5G network is essential for delivering high-quality, personalised mobile advertising campaigns,” Tiwari said.
He also calls for government policies to fund AdTech startups, particularly those leveraging AI for innovative advertising solutions. According to Tiwari, such policies could accelerate growth in the mobile advertising sector, creating jobs and driving technological advancements.
Regulatory Reforms & Ease Of Doing Business
Leaders across the technology sector agree on the need for regulatory reforms to streamline compliance processes and establish robust data protection regulations. Tewari notes that these measures would enhance the ease of operations in tech-heavy sectors and attract foreign technology firms to set up R&D facilities in India.
Khan adds that clearer guidelines on using anonymised public data for AI training could promote responsible AI deployment while fostering international interest in India’s AI market.
Roadmap For Future
The Union Budget 2025 holds the potential to position India as a global leader in technology and innovation. Industry leaders are looking to the government for increased R&D funding, enhanced digital infrastructure, regulatory clarity, and support for sustainable and inclusive growth.
By addressing these expectations, the government could not only strengthen India’s tech ecosystem but also pave the way for transformative economic and social advancements, driven by the power of AI and emerging technologies.
