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Union Budget 2025 - Technology Sector Expectations
Union Budget 2025 is going to be announced soon. All eyes are set on how Finance Minister Nirmala Sitharaman is going to reform the Indian economy. Whether it is about tax slabs, boosting manufacturing sector, or about introducing technological advancements, everyone has certain expectations from this upcoming union budget.
Technology industry speaks about their vision and expectaions from the Union Budget 2025. Announcements related to cybersecurity, data security, reforms for MSMEs, upskilling and reskilling for the youth, tax exemptions, etc is expected by the IT industry as a whole.
Technology Industry voiced their Expectations from Union Budget 2025
Several Indian IT business leaders have expressed their expectations from the coming budgt -
"With the upcoming Union Budget, we anticipate a continued focus on strengthening India's cybersecurity framework. As cyber threats evolve, it's imperative for the government to prioritize investments in cybersecurity infrastructure and initiatives that enhance national resilience against emerging cyberattacks. Public-private partnerships will be instrumental in driving innovation and ensuring that organizations, especially SMEs, gain equitable access to the advanced security technologies. Further, it is important to include provisions that support skill development in the cybersecurity sector nurturing a robust talent pool capable of safeguarding our digital ecosystem. The increased adoption of AI and machine learning for threat detection and response also presents an opportunity to scale up our defense mechanisms. A forward-looking, holistic cybersecurity strategy in this year's budget will not only secure India's digital future but also act as a catalyst for sustained economic growth and global competitiveness."
--Sunil Sapra, Co-Founder & CGO, Eventus Security
"The Union Budget 2025-26 should further ease policies to promote the growth of the MSME sector, which is considered the foundation of the Indian economy. These organizations should have easy access to credit from financial institutions, and benefit from a reduction in high interest on loans and related requirements to produce personal collateral with the complexities in the process also getting eliminated, making it much simpler. The government should empower MSMEs by enabling skill development and entrepreneurship.
Secondly, in today’s interconnected digital landscape, cybersecurity and data privacy are key and the government should focus on robust digital infrastructure, cybersecurity, and data protection, and strengthen its cybersecurity framework. The government should allocate significant funds to develop strong cybersecurity infrastructure and promote best practices across Government/PSUs, Healthcare, and Financial Organizations, among others. There should also be an increased focus on investments in R&D, cutting-edge technologies, and security measures in addition to skill development in the domain."
--Rajarshi Bhattacharyya, Co-Founder, Chairman and MD, ProcessIT Global
"As we approach the Union Budget 2025, the business community expects simplification of regulations, lesser penal provisions, single window clearances and digitalization of compliances. This will not only enable ease of complying but bring higher transparency and better governance. One of the key expectations is the implementation of the new labour codes which will bring about a significant transformation in the manner in which labour law compliances are done today. Not only will it consolidate and simplify the regulations but ensure better adherence. It would also pave way for integrated platforms for digital submissions. It is anticipated that the budget will mention at least a phased roll out starting with the Code on Wages and Social Security. The new Wage code will also take care of benefits and better governance of the unstructured workforce thereby fostering collaborative and resilient business environment as we moved towards a GDP of USD 5 trillion.
From the industry perspective, the expectations would be to initiate steps towards simplification of labour laws, digitalization of compliances and enhanced transparency in licensing and registration processes. From an individual’s perspective, the expectations would include lesser complexity in direct tax slab rates, eliminate surcharge & cess, increase in the sec. 80 C limits, higher housing loan interest benefit under sec. 24 and exclusion of housing loan principal, stamp duty and registration expenses from sec. 80C to an independent benefit section. It would also be a positive move if the Budget announces some additional benefits or concessions to tax payers."--Mahesh Krishnamoorthy, MD, Core Integra
“Technology continues to serve as a powerful catalyst in bridging digital inequality and driving India's economic growth and development. With the upcoming Union Budget 2025, we hope to see a strong commitment to advancing technology adoption and digital transformation, creating lasting impact for communities including women, the rural population and the overall economy. Targeted investments in upskilling and reskilling programs will be critical in equipping our youth with future-ready skills and unlocking opportunities in a dynamic job market and should continue to be a priority. Also, India’s deep-tech ecosystem is on the cusp of exponential growth – especially with AIForSocialGood showing great potential. Strengthening the social innovation landscape through accelerators, incubators, and dedicated support for innovation will further pave the way for sustainable growth”
– Jyoti Sharma, CEO, Nasscom Foundation
“As India moves closer to becoming a global technology hub, the upcoming Union Budget presents a unique opportunity to accelerate our digital transformation journey. To fully harness the potential of AI and emerging technologies, the government should prioritize investments in building intelligent data infrastructure. Robust and scalable data solutions will serve as the backbone for AI readiness. It will enable businesses to leverage data efficiently and securely while driving innovation. Incentives for cloud adoption, data localization frameworks, and public-private partnerships in technology can further bolster India’s digital economy. A future-ready data ecosystem is essential for fostering economic growth, job creation, and global competitiveness in the age of AI.”
--Puneet Gupta, VP and MD, NetApp India/SAARC
“The 2025 Union Budget should focus on creating a robust ecosystem that incentivizes the adoption and development of AI across industries while empowering the tech workforce through structured learning initiatives. It is vital for the government to support R&D and innovation in AI so that India solidifies its position as a global leader in technology innovation. I’m keen to see the government allocate subsidies, incentives, or grants specifically for developing AI-driven solutions. Policies supporting R&D in AI applications, particularly for enhancing automation, improving efficiencies, and enabling data-driven decision-making, will give Indian businesses a competitive edge in global markets. An emphasis on building cybersecurity infrastructure and policies that encourage the adoption of digital and AI workflows will play a pivotal role as well. Grants or tax breaks to promote AI-enhanced automation platforms will help organizations streamline their processes while staying globally competitive.
Moreover, for India to retain its status as the digital talent powerhouse of the world, upskilling and reskilling the workforce should be a priority. The budget should allocate increased funding toward government-sponsored training programs in AI, machine learning, and cybersecurity. Partnerships between academia and industry to create advanced certification programs could further prepare the workforce for the demands of enterprises undergoing digital transformation. Special focus on women’s participation in tech through scholarships or incentives would also ensure a more inclusive ecosystem.”
--Srividya Kannan, Founder and CEO, Avaali Solutions
These comments show that the IT businesses in India are hopeful of a positive government policy in the coming budget. The comment fro NASSCOM shows that the govt is paying special attention to AI and IT skill development. The actual outcome of the government policy remais to be seen.
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