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Union Budget 2025: IT Industry Expectations on R&D;, Cybersecurity
As the date of Union Budget 2025 is near, the IT industry is pouring its expectations and opinions for this budget. Whether fostering research and development, AI and cybersecurity research, skill development, implementation of PLI schemes, or increasing budget allocation for the industry and re-evaluation of GST rates for various products. Everyone has their say in this upcoming budget.
Industry Leaders Expect Policies to Boost Innovation, Manufacturing, and Digital Transformation
"The television manufacturing industry has long advocated for the implementation of the PLI scheme and the development of a local ecosystem for critical components such as displays and semiconductors. Additionally, the current 28% GST on 40-inch and larger TVs, classified as luxury goods, should be re-evaluated, as these products have become essential. Removing this tax could stimulate sales and benefit the industry. Support for export promotion would unlock new business opportunities. Moreover, the focus should shift from solely expanding manufacturing capabilities to fostering R&D, product innovation, and enhancing operational and production efficiencies. It is also crucial that the government refrains from increasing the import duty on open cell components to help maintain the cost of the final product."- Arjun Bajaj, Director - Videotex
"Last year’s Union Budget 2024-25 marked a vital step towards strengthening India’s digital infrastructure, with a significant allocation of over Rs 1,550 crore for cybersecurity initiatives and AI research. The 90% increase in funding for cybersecurity projects, reaching Rs 759 crore, highlighted the government’s commitment to tackling the rising tide of cyber threats. Institutions like CERT-In were empowered with Rs 238 crore to improve incident response capabilities, laying a strong foundation for a secure digital ecosystem.
As we look ahead to the 2025–26 Union Budget, the expectation is for this momentum to continue. 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 these risks effectively. This year, a sharper focus on fostering public-private collaboration and encouraging innovation in indigenous technologies could drive substantial progress in this space.
Also supporting the cybersecurity workforce through targeted skill development programs and providing tax incentives for organizations investing in cutting-edge solutions will help build a robust digital defense framework. Expanding CERT-In’s mandate with additional resources and fostering a cohesive strategy for handling cross-border cyber threats will also be critical. India’s digital economy is evolving rapidly, and the upcoming budget offers an opportunity to align policies with the dual goals of innovation and security."
- Srinivas Shekar, CEO and Co-Founder, Pantherun Technologies
“As India strides to become the global powerhouse of education and technology, we look forward to the government formulating a budget in 2025 that can strengthen the synergy between edtech and domestic manufacturing. Increased budget for setting up digital infrastructure in schools and colleges, particularly rural and semi-urban areas, coupled with government-backed initiatives to provide affordable and reliable internet access in those areas and the introduction of more subsidized data plans, can truly accelerate the nation’s digital transformation from the grass-root level.
Moreover, expanding the scope of PLI schemes to encompass consumer electronics tailored for education can boost the “Make in India” initiative and generate more employment opportunities for the youth. The increasing demand for affordable laptops highly calls for reduced import duties, incentives for local production, and rationalization of taxes. We urge the government to acknowledge and adopt such measures.
Through the establishment of innovation funds for startups developing affordable education technology and hardware, especially those that function independently of broadband infrastructure and promote on-the learning, and further reducing the GST rates for educational devices and software, the government can empower millions of students, educators, and parents to efficiently embrace tech-driven learning.
I believe this budget for 2025 has the potential to redefine accessibility in online education if affordable connectivity, technology integration, and domestic manufacturing are significantly focused on. Likewise, continuous support for MSMEs via easy access to credits and reduced compliance burden can help India bolster the pathway to becoming the leading hub of future-gen technologies and skills. ”
-- Chitranshu Mahant, CEO of Primebook
“The Union Budget 2024 was a significant step forward for India's digital future, demonstrating the government's commitment to infrastructure, including digital and AI development. The focus on infrastructure, energy security, manufacturing, & services along with a special onus on AI, building on India’s world-leading DPI and key initiatives around bolstering innovation highlights the government’s forward-thinking approach. Furthermore, the emphasis on skill development and fostering a talent pool for the tech sector sets a solid foundation for growth. Looking ahead to the 2025 Budget, we expect the budget to build on the strong structural fundamentals of the economy to unlock a higher growth trajectory. We anticipate continued support for building sustainable digital infrastructure at scale in India to support the digital ambitions of the industry, the government, and an increasingly digitally penetrated population of 1.45 billion. We look forward to enhanced support for the deployment of data centres that support and enable the technologies of the future in terms of strengthening the incentives for green data centres, competitive power availability, enabling tax reliefs for infrastructure investment, particularly digital and bolstering R&D in AI and cloud-supporting technologies, increased avenues of the government economic collaboration with the industry and incentivisation of joint skill development efforts. We believe these will be pivotal for accelerating digital transformation. STT GDC India remains completely committed to supporting the nation’s long-term sustainable and innovative growth in line with the government's vision of Viksit Bharat."
-- Bimal Khandelwal, CEO- STT GDC India
Conclusion
To conclude this article, different organizations shared and advocated about the policies related to R&D in AI and cloud supporting technologies. From this Union budget, they expect that MSMEs will be supported with easy credits and a reduction of GST rates, especially for educational devices such as projectors and interactive boards. Now, it is a wait and watch scenario for the industry till the budget announcements unfold.
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