New Delhi: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has laid significant emphasis on technology, AI, IT, and manufacturing, reinforcing India’s ambition to become a global powerhouse in these domains.
Various industry leaders have welcomed the budget, highlighting key allocations and policy measures that aim to drive growth, innovation, and self-reliance across multiple sectors.
Technology and AI: A Leap Towards Digital Leadership
Sunil Gupta, Co-founder, CEO & MD of Yotta Data Services, emphasized that the budget reinforces India’s ambition to emerge as a technology leader, particularly in AI and deep tech. He highlighted the Rs 500 crore investment in three Centres of Excellence for AI in education as a major step towards making AI-led learning mainstream.
“This will not only help in upskilling the AI talent pool in India and preparing the youth for the jobs of the future but also democratize access to high-quality education,” he said. Gupta also pointed out the importance of AI-driven solutions such as real-time language translation and personalized learning pathways, which can play a crucial role in India’s multilingual education system.
Gupta further praised initiatives like the Deeptech Fund of Funds and the 10,000 fellowships for tech research at IITs and IISc, stating that these efforts will help bridge the gap between education and employability while fostering homegrown AI-led technological breakthroughs.
He compared this AI push to India’s IT boom, stating that by prioritizing talent development and large-scale skill-building, the country is taking a decisive step towards global digital leadership.
Swapna Bapat, Vice President & Managing Director, India and SAARC, Palo Alto Networks, echoed similar sentiments, emphasizing that AI innovation must go hand-in-hand with security.
“We strongly believe that innovation is the driving force behind sustainable progress. The Government of India’s Rs 500-crore investment to establish a Centre of Excellence in AI for education marks a decisive step toward realizing AI’s full potential,” she stated.
However, she also cautioned about the risks associated with AI adoption, calling for a responsible, secure, and inclusive AI ecosystem.
Piyush Somani, Chairman and Managing Director, ESDS Software Solution Limited, hailed the budget’s strong focus on AI, deep tech, and skilling. He particularly welcomed the establishment of Global Capability Centres (GCCs) in Tier-2 cities, stating that this would unlock new opportunities in cloud computing, AI, and cybersecurity.
“At ESDS, we are excited to align with these transformative initiatives and contribute to India’s journey as a global technology leader,” Somani stated.
Manufacturing and Infrastructure: Strengthening India’s Industrial Base
Warren Harris, CEO & MD of Tata Technologies, praised the establishment of the National Manufacturing Mission, which aligns with the ‘Make in India’ initiative and aims to enhance self-reliance in manufacturing.
“This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players,” he said. Harris also emphasized the importance of the five National Centres of Excellence for Skilling, which will equip India’s workforce with expertise in Industry 4.0, IoT, and advanced manufacturing.
Arpan Ghosh, Founder & Director of Gamma Rotors, highlighted the significant boost in the Production-Linked Incentive (PLI) scheme, which has increased to Rs 16,092 crore for FY25 from Rs 8,520 crore in FY24.
“This significant increase underscores the government’s strong dedication to bolstering domestic manufacturing. Importantly, 38 per cent of this allocation targets large-scale electronics manufacturing—a critical driver for the drone industry,” Ghosh stated. He further added that these measures would nurture startups, promote deep-tech innovation, and create over 1 million jobs in the drone sector alone by 2025.
Harsh Pareek, Regional Sales Director, India and SAARC, Trimble Solutions, acknowledged the budget’s continued investment in infrastructure development. He noted that the Rs 1.5 lakh crore allocated as interest-free loans to states for infrastructure projects would enhance digitalization and sustainable construction practices.
“By integrating advanced construction technologies, we can help India build faster, safer, and more cost-effective infrastructure that stands the test of time,” Pareek said.
Space and Geospatial Technologies: Expanding India’s Horizons
Lt. Gen. AK Bhatt, Director General, the Indian Space Association (ISpA), welcomed the announcement of the National Geospatial Mission, which will play a crucial role in modernizing land records, urban planning, and infrastructure design.
“We welcome the announcement in the Union Budget to facilitate the modernization of land records, urban planning, and design of infrastructure projects under this crucial mission,” he said. Bhatt also pointed out that the focus on skilling through the National Centres of Excellence will help India’s workforce compete globally.
He highlighted that initiatives like the New Fund of Funds (FoF) for startups and enhanced Credit Guarantee Schemes will provide a significant boost to space tech startups, which are still in their nascent stage.
Skilling and Workforce Development: Preparing for the Future
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, emphasized that the establishment of five National Centres of Excellence for Skilling is a transformative step in equipping Indian youth with industry-aligned skills.
“These centres will serve as specialized hubs focusing on high-growth sectors such as advanced manufacturing, renewable energy, AI, automation, and aerospace, ensuring that Indian youth gain practical, job-oriented training,” Kumar said. He also pointed out that these initiatives would help India position itself as a global supplier of skilled professionals.
Manav Subodh, Founder of 1M1B, highlighted the importance of skilling in the context of India’s growing investments in infrastructure, defence modernization, and clean tech.
“This surge underscores the urgent need for industry-aligned skills academies through public-private partnerships,” he said. He added that increased credit for startups and MSMEs will further support the development of a skilled workforce.
Cybersecurity and Responsible AI Implementation
Amit Relan, Co-Founder and CEO, mFilterIt, pointed out that while AI adoption is expanding, ensuring transparency, trust, and ethical implementation will be critical.
“The future of India’s digital economy depends not just on technological advancements but on building a responsible, secure, and inclusive ecosystem where businesses of all sizes can thrive,” he stated.
The Union Budget 2025 has been well-received by industry leaders across technology, AI, IT, manufacturing, and infrastructure sectors. With a strong emphasis on AI, deep tech, digital infrastructure, and workforce development, the government has laid the foundation for India’s long-term growth as a global innovation hub.
Experts across industries have praised these initiatives, recognizing their potential to drive economic expansion, job creation, and technological advancements, while also cautioning about the need for responsible and secure implementation of emerging technologies.
As India progresses toward its ambitious digital and industrial transformation goals, these budgetary measures will play a crucial role in shaping the nation’s future, fostering innovation, and reinforcing India’s position on the global stage.
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