Budget 2025: From AI, Upskilling, Subsidies To Renewables, Tech Sector Leaders Reveal Expectations

The technology sector is anticipating how the Union Budget 2025 will influence the industry’s future. At the same time, tech sector leaders are expecting fiscal policy changes from the government. 

Based on pre-budget talks, industry reports, and expert assessments, technology leaders have voiced their expectations from the 2025 Budget.

Ashish Tandon, Founder And CEO of Indusface:

“As India’s digital economy continues its rapid growth, the cybersecurity landscape has become increasingly volatile. Our recent research reveals alarming trends—API attacks have surged by 3000%, and SMBs face DDoS attack rates 175% higher than larger enterprises. The rise of generative AI has further lowered the barrier to executing sophisticated cyberattacks, leaving businesses more vulnerable.

We urge the finance ministry to introduce incentives and financial support for businesses prioritising cybersecurity investments. These measures would help organisations mitigate risks effectively while reinforcing the government’s commitment to a secure digital ecosystem. Bridging the gap between compliance demands and economic realities is essential to strengthening India’s resilience against evolving cyber threats.”

Srividya Kannan, Founder And CEO of Avaali:

“I’m keen to see the government allocate subsidies, incentives, or grants specifically for developing AI-driven solutions. Policies supporting R&D in AI applications, particularly for enhancing automation, improving efficiencies, and enabling data-driven decision-making, will give Indian businesses a competitive edge in global markets.

For India to retain its status as the digital talent powerhouse of the world, upskilling and reskilling the workforce should be a priority. The budget should allocate increased funding toward government-sponsored training programs in AI, machine learning, and cybersecurity. Partnerships between academia and industry to create advanced certification programs could further prepare the workforce for the demands of enterprises undergoing digital transformation. Special focus on women’s participation in tech through scholarships or incentives would also ensure a more inclusive ecosystem.”

Sudhir Kunder, Chief Business Officer, DE-CIX India:

“Budget 2025 should prioritise investments in data centre interconnection facilities to bridge regional gaps and ensure equitable access to advanced digital services. Additionally, promoting energy-efficient data centres through subsidies and tax incentives for renewable energy adoption will support sustainability while accommodating the rising demand for AI, IoT, and 5G technologies. 

Budget 2025 should focus on incentivising research and development in emerging technologies like edge computing, quantum computing, and AI-driven network systems. While companies can currently claim a weighted deduction of 150% on eligible R& D expenditures under Section 35(2AB) of the Income Tax Act, there’s room for further enhancement. 

Sumeet Mathur, Senior Vice President And Managing Director, ServiceNow India Technology & Business Centre:

“With India’s workforce projected to expand by 33.89 million and AI transformation anticipated to generate 2.73 million new tech jobs by 2028, the nation is well-positioned to lead in emerging technologies like AI and digital skills. To fully harness AI’s potential, the government must place a strong emphasis on skilling for AI, establishing robust training frameworks that empower the workforce with future-ready capabilities. Additionally, policies that support the industry in attracting investments, promoting innovation, and building world-class digital infrastructure will be crucial. Strengthening public-private partnerships can further accelerate these efforts, bridging the digital divide and fostering a thriving tech ecosystem.” 

Udit Yadav, Founder And Director Of Satan Digital:

“The government must focus on enhancing digital infrastructure, especially in rural areas, where only about 40% of households have reliable internet access. This presents a unique opportunity for public-private collaboration to develop innovative educational technologies and skill-building programmes. By equipping our youth with digital literacy and tech-driven skills, we can help them meet the demands of the modern workforce and thrive in a global economy."

Pankit Desai, CEO And Co-Founder, Sequretek:

“The finance minister must prioritise cybersecurity in the upcoming budget. Given India’s alarming rank among the top four global victims of deepfake and digital arrest attacks, raising awareness about these threats is more important than ever. 

Despite policies, local cybersecurity ecosystems face significant hurdles and need more governmental support, particularly in procurement processes that impede Indian-origin companies from effectively bidding for government contracts. These policies must be revised to foster a more inclusive environment for domestic cybersecurity firms.

While educational institutions have made strides in offering cybersecurity courses, practical skills remain underdeveloped. By supporting educational initiatives to provide hands-on experience, the government can ensure that students graduate with the practical skills required to bolster India’s cybersecurity defences.” 

Praveen Grover, Vice President And Managing Director, AHEAD:

“We hope for incentives that encourage investment in carbon-neutral data centres and hybrid cloud solutions, such as capital subsidies and accelerated depreciation benefits for green technologies. AHEAD also advocates for a focused allocation to AI-driven digital innovation, including a national AI fund that supports research in predictive analytics and generative AI. On the talent side, budgetary provisions to fund reskilling initiatives in partnership with IT service providers could ensure our workforce remains future-ready. Additionally, streamlining compliance processes for cross-border IT service providers would enhance ease of doing business and attract global enterprises to invest in India.”

Ankit Mehta, CEO, IdeaForge: 

“Our expectations for the upcoming Budget 2024-25 is centred around policy measures and fiscal incentives to establish India as a global drone hub by 2030. We look forward to further enhancements in regulatory frameworks and their execution to fuel innovation and industry growth.

Continued support for research and development, along with incentives for technological collaborations, will be instrumental in propelling India’s drone manufacturing capabilities to new heights. Moreover, we hope to see the government’s commitment to nurturing this budding drone industry as drones are anticipated to play a vital role in facilitating security and governance infrastructure.”

Yug Bhatia, CEO And Founder Of ControlZ:

“From this Budget 2025, we predict a reduction in the GST rate to make refurbished devices more affordable and accessible to a wider audience. We are also expecting that the government will boost credit access and financing options, along with collateral-free and low-interest loans to the refurbished smartphone players. We propose that the government provide tax benefits and subsidies to the refurbished smartphone players who invest in R&D, AI to promote innovation and technology adoption in this sector. Lastly, we advocate for a focus on the circular economy and its environmental benefits, viewing it not just as a business opportunity but as a collective responsibility to make this sector more organised.” 

Viren Choudary, CEO of Readywire:

“MSMEs are the backbone of the Indian economy. I hope the budget introduces policies that encourage the adoption of systemic digitisation and AI-driven technologies in this sector. Providing subsidies and other incentives to infuse tech into their processes will improve productivity and yield manifold returns to the economy.”

Narinder Kumar, CEO, To The New

"We hope to see significant funding allocations for GenAI research and development, as well as the establishment of a regulatory sandbox to facilitate experimentation and advancement in AI. Furthermore, we anticipate increased export incentives for IT exports, particularly in areas like GenAI, to boost our global competitiveness. Skilling missions that facilitate training and collaborations with top colleges will be crucial in addressing the talent gap and preparing our workforce for emerging technologies.

We also expect the integration of AI in governance, enabling data-driven decision-making and efficient public service delivery. Policies that enhance IT exports, simplify regulatory compliance, and promote ease of doing business will be vital in driving growth and positioning India as a global IT leader in the new and evolving paradigm of GenAI-driven everything.

Another key expectation from the budget is a strong push to promote investments in cloud infrastructure, which is vital for accelerating digital transformation and enabling scalability for businesses across industries. With data becoming an increasingly critical asset, we hope to see initiatives that encourage the development of robust data ecosystems and infrastructure, fostering innovation while ensuring security and compliance. Additionally, India's digital public infrastructure, exemplified by its globally acclaimed tech stack, has laid a solid foundation for transformative growth. To deepen the penetration of digital technologies and enhance access across sectors, continued investment and expansion in this area will be pivotal in driving inclusive growth and empowering businesses and citizens alike."

Pankaj Jha, Managing Director, Maxhub India

"The Union Budget is expected to lay a strong foundation for technology-driven growth by prioritizing R&D, expanding digital infrastructure, and fostering AI adoption. Measures to simplify business operations and promote innovation could strengthen India’s position as a global technology hub.

Targeted investments in emerging technologies and digital ecosystems would not only empower the tech industry but also unlock broader economic potential. Such a vision could drive transformative advancements, job creation, improving efficiency across sectors, and boosting global competitiveness. By aligning technology with growth strategies, the government can ensure sustainable development and cement India’s leadership in the global digital economy."