New Delhi: With the Union Budget FY25-26 on the horizon, India’s artificial intelligence (AI) sector is abuzz with expectations. Stakeholders across industries have articulated their hopes for policies that will enable innovation, infrastructure growth, skill development, and ethical AI deployment.
Industry leaders emphasize the need for targeted funding, regulatory clarity, and public-private partnerships to propel India toward global leadership in AI.
Building Sustainable Smart Cities with AI
Chinmay Hegde, Co-founder, CEO, and Managing Director of Astrikos.ai, highlights the critical role of AI in urban sustainability. “With India urbanizing rapidly, the government must focus on AI-driven infrastructure management to ensure energy efficiency, waste management, and reduced carbon footprints,” Hegde states.
He advocates for increased investments in technologies like AI, IoT, and automation under the Smart Cities Mission, calling for a higher budget allocation to meet the initiative’s objectives.
Hegde also emphasizes the importance of skill development. “Comprehensive programs under public-private partnerships (PPP) to train youth and workers in AI and machine learning will strengthen the country’s productivity and innovation,” he adds.
Additionally, he urges the government to address bureaucratic hurdles, particularly in taxation, which deter startups from leveraging income tax rebates under the ‘Startup India’ program.
Regulatory Reforms and Ethical AI
Gaurav Sahay, Practice Head for Technology and General Corporate at Fox Mandal & Associates LLP, stresses the need for regulatory clarity to build a resilient AI ecosystem.
He recommends introducing incentives for AI research and development, establishing AI-focused hubs, and promoting partnerships between academia, startups, and industries.
“Specific regulations on ethical AI deployment and explainable AI are essential for sustainable growth,” Sahay notes.
He emphasizes the transformative potential of AI in sectors like healthcare, agriculture, and education, urging the government to create a long-term roadmap to address emerging challenges.
Transforming Healthcare with AI
Dr. Anand, Founding Director and CEO of Remidio, envisions AI as a game-changer in healthcare. “With 275 million Indians affected by vision impairment, AI-enabled retinal screening can prevent complications from diabetes, hypertension, and heart diseases,” Anand explains.
He encourages the government to invest in AI diagnostics and early detection technologies, while fostering public-private partnerships to improve healthcare access in underserved areas.
“India’s leadership in medical tourism is a testament to its healthcare infrastructure. By focusing on AI-driven solutions, we can further enhance outcomes at scale,” he adds.
Revolutionizing Education with AI
Mridu Andotra, Founder & CEO of GeniusMentor, believes that AI integration in education is crucial for India’s future. She points out that while the government allocated Rs 10,300 crore to the IndiaAI Mission in FY24-25, a dedicated budget for AI in education is necessary.
“Investments should focus on high-speed internet, advanced digital tools, and AI labs in schools and colleges,” Andotra says. She urges the government to increase AI allocations to 5-10 per cent of the education budget, ensuring that India remains competitive with global leaders like the US and China.
Strengthening Electronics Manufacturing
Arijeet Talapatra, CEO of itel India, emphasizes the pivotal role of AI in the electronics and smartphone manufacturing industries. He calls for an expansion of the Production Linked Incentive (PLI) program to include semiconductors, high-capacity batteries, and display technologies.
“Focused R&D grants for emerging technologies such as AI and IoT will be a much-needed boost – a significant step towards making India a Vishwaguru in the electronics ecosystem,” Talapatra remarks.
He also highlights the need for robust cybersecurity measures and 5G infrastructure to support the aspirations of India’s youth and drive innovation.
Advancing Cloud and Edge Technologies
Saurabh Bhardwaj, CEO of Verge Cloud, sees the budget as an opportunity to enhance digital infrastructure. He anticipates increased support for AI, edge computing, and cloud solutions, which are critical for scalability, cybersecurity, and innovation.
“Policy support for startups and workforce skilling initiatives will accelerate India’s digital readiness,” Bhardwaj says. His vision aligns with the government’s broader goals of fostering a secure and inclusive digital ecosystem.
AI Startups and GPU Infrastructure
Ganesh Gopalan, Co-Founder & CEO of Gnani.ai, underscores the need for investments in AI research, the IndiaAI Mission, and GPU infrastructure.
“The government’s commitment to ethical AI frameworks and AI-powered entrepreneurship can transform industries and ensure global competitiveness,” he asserts. Gopalan advocates for a significant budget allocation for AI startups to drive innovation and adoption across sectors.
Fostering Innovation in Startups
Himanshu Gupta, CEO & Founder of Lawyered, and Ashish Bhatia, Founder & CEO of India Accelerator, emphasize the importance of supporting AI-driven startups. Gupta highlights the need for tailored funding schemes, while Bhatia calls for simplified regulations and tax incentives to foster innovation.
“Startups require an ecosystem that minimizes risks while encouraging transformative solutions,” Gupta says. Bhatia adds that a focus on robotics, unmanned systems, and AI-driven legal solutions can position India as a global leader in emerging technologies.
The AI sector has become a cornerstone of India’s technological aspirations, with far-reaching implications for urban planning, healthcare, education, and manufacturing.
Industry leaders unanimously agree that the Union Budget FY25-26 must prioritize investments in AI infrastructure, skill development, regulatory reforms, and ethical AI deployment. By addressing these areas, India can solidify its position as a global leader in artificial intelligence, fostering innovation and economic growth for years to come.
Also Read –
Union Budget FY25-26: Experts Call for Enhanced Cybersecurity Funding, R&D and AI-Driven Solutions
