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Union Budget FY25-26: Experts Call for Enhanced Cybersecurity Funding, R&D and AI-Driven Solutions

By: Bhaswati Guha Majumder

by Bhaswati Guha Majumder
January 24, 2025
in Exclusive
Reading Time: 4 mins read
Experts share recommendations for Budget FY25-26, focusing on enhanced cybersecurity funding, AI-driven solutions and public-private collaborations to safeguard digital infrastructure.

Experts share recommendations for Budget FY25-26, focusing on enhanced cybersecurity funding, AI-driven solutions and public-private collaborations to safeguard digital infrastructure.

Summarize with:

New Delhi: India’s digital infrastructure has seen unprecedented growth in recent years, driven by the rapid adoption of AI, IoT, and blockchain technologies. However, this expansion has also heightened the risk of sophisticated cyber threats, making cybersecurity a top priority for the upcoming Union Budget 2025-26.

Experts from the industry are urging the government to introduce robust measures, including increased funding, public-private collaboration, and focused skill development initiatives, to safeguard India’s digital future.

A Legacy of Rising Investments

Before 2022, India’s cybersecurity budget was modest, with the Ministry of Electronics and Information Technology (MeitY) allocating just Rs 30 crore for cybersecurity projects in the FY2022-23 budget.

However, recognizing the growing threat landscape, the government ramped up its investments, with allocations reaching Rs 750 crore by FY2024-25. This trend reflects a steady commitment to strengthening the country’s digital defences.

Notably, the budget for regulatory authority CERT-In rose to Rs 238 crore, while Rs 759 crore was allocated for cybersecurity projects under the Digital India initiative.

R&D and Innovation: Staying Ahead of Threats

Dipesh Kaura, Country Director of Securonix, India, emphasized the need for increased funding for research and development in cybersecurity.

“India needs to innovate its cyber technologies to stay ahead of the competition. The government should allocate higher budgets for grants, tax benefits, and partnerships between academia and industry to drive indigenous R&D.”

Kaura also called for strengthening public-private partnerships (PPPs) to address the dynamic nature of cyber threats.

“More effective PPP initiatives can enable knowledge sharing, skill-building, and real-time threat intelligence exchange among sectors,” he added.

Bridging the Talent Gap

One of the key recommendations from Kaura was allocating funds for skill development programs. He suggested subsidies for certification programs, scholarships for specialized education, and incorporating cybersecurity into technical curricula.

“Upskilling the workforce will lay the foundation for a secure, future-ready India,” he noted.

Pankit Desai, CEO and Co-founder of Sequretek, echoed this sentiment, stressing the importance of hands-on training for cybersecurity professionals.

“While educational institutions have made strides in offering cybersecurity courses, practical skills remain underdeveloped. More investment in infrastructure at educational institutions can enhance real-world readiness.”

Secure AI and Citizen Awareness

With the rise of AI-driven cyber threats, Chetan Jain, Founding Executive Director and MD of Inspira Enterprise, highlighted the need for incentivizing secure AI solutions.

“The government should introduce incentives to encourage homegrown cybersecurity firms to invest in R&D and implement secure AI technologies,” he said.

Jain also pointed out the growing menace of cyberbullying, particularly targeting senior citizens and young adults. He recommended dedicated budget allocations for citizen awareness programs and strengthening prevention mechanisms.

“Such measures would fortify the country’s cybersecurity framework and protect against emerging threats,” Jain added.

Leveraging AI and Expanding CERT-In’s Mandate

Srinivas Shekar, CEO and Co-founder of Pantherun Technologies, praised the government’s increasing focus on cybersecurity in the last budget, particularly the allocation of Rs 759 crore for projects and Rs 238 crore for CERT-In. He urged the government to sustain this momentum in the upcoming budget.

“Cyber threats are becoming more sophisticated, and there’s a pressing need for sustained investment in AI-driven cybersecurity solutions that can preempt and mitigate risks effectively,” Shekar stated.

He also emphasized the importance of expanding CERT-In’s mandate, providing additional resources, and fostering a cohesive strategy for handling cross-border cyber threats.

Strengthening Domestic Cybersecurity Ecosystems

Desai of Sequretek flagged policy-level challenges faced by local cybersecurity firms, particularly in government procurement processes.

“Despite policies, local cybersecurity ecosystems face significant hurdles. Procurement processes must be revised to foster a more inclusive environment for domestic firms to effectively bid for government contracts,” he asserted.

Desai also pointed out India’s vulnerability to deepfake and digital arrest attacks. “As the Prime Minister highlighted with ‘Digital Arrests,’ raising public and industry awareness about these threats is crucial. Strategic investments can reinforce India’s cybersecurity defences and talent,” he said.

Unified Call for Strategic Investments

The consistent theme across expert recommendations is the need for strategic, targeted investments in cybersecurity to address emerging threats and strengthen India’s digital ecosystem.

From funding R&D and securing AI technologies to fostering PPPs and enhancing skill development, the upcoming Union Budget 2025-26 is expected to play a pivotal role in shaping the future of India’s cybersecurity landscape.

With cybercrime evolving rapidly, experts agree that a robust, well-funded cybersecurity framework is not just a necessity but an imperative for India’s digital ambitions.

As the government unveils its financial roadmap for the next fiscal year, the industry will be keenly watching for steps to align innovation and security, ensuring a safer digital economy for all.

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Summarize with:
Tags: AIBlockchainCERT-InCitizen AwarenessCyber threatsCyberbullyingCybersecuritydeepfakesDigital ArrestsDigital IndiaDigital InfrastructureFundingIndiaIoTPublic-Private PartnershipsR&DSkill DevelopmentUnion Budget
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