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Budget Emphasis on AI and Deep Techs - Comments from IT Sector

Budget Emphasis on AI and Deep Techs - Comments from IT Sector to show the vision for the development plan of this government for the next 2 decades

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IT business leaders India have shown enthusiasm for the prospect of AI and deep tech getting a boost by the government in this year's Budget. NASSCOM has further explained its relevance to the vision of Indian government abou India's development plan in future.

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Following are the comments from the IT buiness leaders regarding this - 

The Union Budget 2025-26 lays a strong foundation for India’s digital-first economy, with a clear emphasis on AI, deep tech and digital public infrastructure. The introduction of the Deep Tech Fund of Funds is a significant move to accelerate next-generation startups in AI and advanced computing, fostering innovation and global competitiveness. 

The establishment of a Rs 500 crore Centre of Excellence in AI for Education reinforces India's commitment to AI-driven learning, ensuring a future-ready workforce. The National Framework for Global Capability Centers (GCCs) will further strengthen IT and outsourcing hubs in Tier-2 cities, driving infrastructure development and talent expansion. Additionally, with increased PPP support for digital infrastructure under the India Infrastructure Project Development Fund (IIPDF), private sector investments in broadband and connectivity are expected to gain momentum. Together, these initiatives position India as a leading player in the global digital economy, accelerating the adoption of AI, deep tech and emerging technologies. However, areas like datacentres required more focused policy support to establish India as a regional digital hub. Clarity in AI regulation and security frameworks is also essential to ensure responsible AI adoption while fostering continued innovation.

--Pinkesh Kotecha, MD & Chairman, Ishan Technologies

 

 

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The Union Budget 2025-26 marks a defining moment for India's semiconductor ambitions. The expanded PLI scheme of Rs 6,200 crores and dedicated R&D fund send a clear signal - India is not just assembling but aiming to lead in design and fabrication of complex systems and chips. However, success hinges on execution of these schemes and lowering barrier for industry to utilise these incentives and schemes.

At KeenSemi, we see this as an opportunity to bridge the gap between India's Indigenous requirements and skills needed to achieve them. We are ready to contribute, collaborate and deepen our role in India’s semiconductor value chain. 

Global competitiveness will require not just financial incentives but also infrastructure readiness, faster approvals, and a seamless supply chain. This budget sets the right intent - what follows next will determine India's strong trajectory in the global semiconductor supremacy race.

--Pankaj Panjwani, CEO and Founder, KeenSemi

 

 

The emphasis on scientific thinking is seeded at the school level with the setting up of Fifty thousand Atal Tinkering Labs to cultivate a culture of Innovation among young minds. This goes all the way to funding ten thousand fellowships at IITs and IISc for technology researchers at the highest level.

Five National Centres of Excellence in skilling with global expertise is a good example of private public partnership to ensure the best of curriculum for manufacturing. We also now have a fourth Centres of Excellence in AI for education and this investment clearly outlines we need a pool of talent that will help us to exploit the potential of AI in various fields.

We welcome the 50% duty cut on switches for telecom as this will reduce the cost of secure networking for the service providers. The cybersecurity skills gap remains a major concern as we continue to struggle in securing our digital assets. In the area of cybersecurity training and upskilling we at Fortinet are at the forefront of addressing the skills gap and are closely working with CERT-IN and AICTE where one lakh internship is on offer to professionals interested in starting a career in cybersecurity.

IT and Technology Expertise will continue to drive economic growth with the Deep Tech Fund of Funds for start-ups supporting first time entrepreneurs to innovate and ideate new business opportunities. The four powerful budget engines chug along very nicely for Agriculture, MSME, Investment and Export growth taking everyone along on this journey of prosperity and resilience.

--Vishak Raman, VP, Sales, India, SAARC, SEA and ANZ, Fortinet

 

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Budget 2025 lays a strong foundation for economic growth, digital transformation and innovation-driven development. The government’s focus on infrastructure investment, business-friendly policies and deep tech innovation positions India as a global technology leader. The introduction of a Deep Tech Fund is a significant step, encouraging AI-driven advancements and strengthening cybersecurity. The government's push for deep-tech innovation, AI and cybersecurity will be a game-changer. Investing in next-gen technologies and digital resilience will empower businesses and accelerate India’s position as a technology leader.

The revised tax structure, ease of compliance and 50-year interest-free loans to states for infrastructure projects will drive economic growth. Additionally, a strong emphasis on skill development in emerging IT domains ensures a future-ready workforce. With strategic reforms and a focus on technology, Budget 2025 paves the way for a digitally empowered and globally competitive India.

--Sachhin Gajjaer, MD, Sattrix India

 

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The Union Budget 2025 sets a bold direction for India's startup ecosystem, strengthening its position as a global innovation leader. The government's Rs 10,000 crore expansion of the Fund of Funds will fuel innovation across key sectors, while enhanced Credit Guarantee Schemes for startups and MSMEs will improve access to capital for growth. The introduction of a Deeptech Fund of Funds and 10,000 research fellowships underscores India’s commitment to cutting-edge technology leadership. Additionally, 50,000 Atal Tinkering Labs and Centres of Excellence in AI & Manufacturing will empower young innovators with future-ready skills. The new scheme for 5 lakh women, scheduled castes and scheduled tribes first-time entrepreneurs, offering term loans up to Rs 2 crore and capacity-building initiatives, will further foster inclusive growth. These initiatives will drive entrepreneurship and global competitiveness. At iCreate, we are dedicated to accelerating this vision by fostering ground-breaking ideas and shaping the next wave of world-class innovators.

--Avinash Punekar, CEO, iCreate 

 

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The 2025 Union Budget reinforces technology's role as a catalyst for inclusive growth, with specific emphasis on digital inclusion, skills development, and empowerment of women, farmers, and marginalised communities, strongly aligning with our mission at NASSCOM Foundation. It is elating to see a strategic emphasis on AI, particularly the establishment of a Centre of Excellence in AI for Education with an allocation of Rs 500 crore coupled with further investments in upskilling and reskilling programs, particularly targeting women and rural populations, aligns with our vision and mission of fostering inclusive growth. With allocated funds, initiatives such as dedicated research centers for AI, expanded digital infrastructure and support for the deep-tech ecosystem, will further fuel growth, innovation and sustainable development.

At NASSCOM Foundation, we are positive that the Budget will create new avenues for the youth and women, encourage investments in AI for social good, strengthen India’s economic growth trajectory of India and support the government realise the vision of Viksit Bharat 2047.

In essence, we look forward to collaborating with the government and other stakeholders to implement these initiatives effectively, ensuring that the benefits reach the grassroots level and contribute to a digitally empowered and inclusive India.

--Jyoti Sharma, CEO, NASSCOM Foundation 

 

 

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The Union Budget 2025-26 shows a clear focus on supporting MSMEs and strengthening the manufacturing sector, which is key to India’s economic growth. The revision of MSME classification criteria and the increase in credit guarantee cover will make it easier for businesses to access funds, helping them expand and create jobs. The introduction of customised credit cards for micro-enterprises and the new scheme for first-time entrepreneurs will encourage small businesses, especially those led by women and marginalized communities. The National Manufacturing Mission and support for clean tech manufacturing will boost domestic production and promote sustainable growth. These measures will improve business operations and help India become a stronger player in global manufacturing. Aforeserve appreciates the government’s approach to strengthening MSMEs, driving innovation, and creating more employment opportunities.

--Soumitra Gupta, Founder & CEO, Aforeserve 

 

The 2025 budget just gave India’s AI scene a bit of an adrenaline shot. Rs 20,000 crore across two ‘fund of funds’ is exactly the kind of fuel AI startups need to go big, build smarter, and solve real-world problems at scale. This isn’t just about catching up - it’s about putting India in the driver’s seat of AI innovation, especially in areas like security, inclusivity and cracking the language barriers that global AI models still struggle with.

--Raj K Gopalakrishnan, Co-Founder & CEO of KOGO AI

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The comments show that the IT industry welcomes the Budget with a positive mind and hopes that the emphasis on R&D, manufacturing, the new taxation slabs, help to the MSMEs and the support to AI and deep tech shall take India forward.

Read more on Budget I

Read more on Budget II

FAIITA Statement on Budget

Read more from Archana Verma

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