IT SMBs, MSMEs Expectations - Union Budget 2025-26

Union Budget 2025-26 is going to be announced on 1st February, 2025. The information technology sector is a strong pillar of the Indian economy. MSMEs, startups, and SMBs have a lot of expectations from this budget announcement. Industry voiced their opinion on how they believe that promoting sustainable solutions, infrastructural growth, pushing manufacturing under Make in India, PLI, R&D funding for semiconductor industry, and various other initiatives are expected to be paid attention under this budget.

Industry Opinions and Expectations from Union Budget 2025-26

"As we approach the Union Budget 2025-26, there is increased interest in policies that would promote infrastructural growth, support technical advancements, and promote energy-saving solutions. This Budget has the potential to consolidate India's status as a global manufacturing hub by implementing policies to encourage innovation and sustainability across industries. With infrastructure development serving as the foundation for economic growth, it is critical to prioritize investments in smart technologies like automation, and IoT. Policies that promote local production and streamline regulations can increase efficiency, reduce reliance on imports, and provide job opportunities. The Budget also provides an important chance to address sustainability issues by encouraging the use of environmentally friendly technologies and energy-efficient practices. These initiatives, which encourage innovation and correspond with global best practices, can ensure long-term growth while also constructing a robust and future-ready economy."

– Kishan Jain, Director, Goldmedal Electricals
 

"As we approach the Union Budget 2025-26, there is great anticipation for policies that can shape a forward-looking roadmap for India's economic growth. This Budget has the potential to catalyze infrastructure development, support the transition to sustainable energy solutions, and enhance the competitiveness of domestic manufacturing under initiatives like 'Make in India.' The electrical and electronics sector plays a critical role in driving safety, efficiency, and sustainability across residential, commercial, and industrial applications. Measures that simplify tariff structures, expand the scope of Production Linked Incentive (PLI) schemes, and encourage investment in energy-efficient infrastructure will be instrumental in strengthening India's position as a global manufacturing hub. We are optimistic that the Budget will prioritize these areas, creating a robust foundation for innovation, economic growth, and environmental sustainability. Such initiatives will pave the way for a more resilient and self-reliant India, benefiting industries and consumers alike."

– Rajesh Jain, CFO, RR Kabel

"As the global apex body representing the semiconductor and electronics design and manufacturing supply chain, here are SEMI’s expectations for the budget 2025:
India is currently at the cusp of becoming a major global semiconductor hub. As we anticipate the 2025 Union Budget, I must say that it is also going to be a key inflection point for the industry at large. To take a significant step forward, it is imperative for India’s semiconductor value chain to: Make strategic investments in domestic manufacturing capabilities, expand R&D funding, and drive sustainable innovation across.
India must also develop a resilient supply chain as well as a skilled workforce. It is very crucial for the industry, and to make this happen, there must be collaborations with premier universities and institutions like IITs and NITs to create specialized curricula tailored to semiconductor technologies. This will address the industry's rising demand for talent.
Taiwan is the current leader in global semiconductor manufacturing with over a 50% share, followed by South Korea, and we are seeing multiple governments investing to grow their share. For India to be a competitive player, it is key that the country implements some optimized duty structures for importing critical components that are needed in the semiconductor industry. India must also propose some export incentives that can strengthen global market competitiveness.
It is important to maintain a long-term perspective in policies to build India’s semiconductor ecosystem. This is a marathon, not a sprint. The government will need to demonstrate sustained commitment until the emerging semiconductor ecosystem is robust enough to stand on its own, particularly to attract investment from major multinational corporations. I believe that with the alignment of the fiscal policies, duty frameworks, and the much-needed skilling initiatives, India can establish itself as a foundation of the global semiconductor ecosystem. This will drive both innovation and economic growth."

-- Ajit Manocha, President & CEO, SEMI

"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."

-- Pankaj Jha, MD of MAXHUB India

Conclusion

Different organizations, MAXHUB India, SEMI, RR Kabel, and Goldmedal Electricals, shared their expectations. SEMI even quoted about how Taiwan is leading in the semiconductor industry; therefore, India should also incentivise the sector to increase their share in the semiconductor industry. Meanwhile, RR Kabel emphasized pushing manufacturers under the Make in India initiative. 

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Union Budget 2025 - Technology Sector Expectations