In anticipation of India’s Union Budget 2025, voices from the technology sector are calling for targeted policies to accelerate growth in emerging technologies, digital infrastructure, and workforce development. With a focus on artificial intelligence (AI), mobile manufacturing, and wearables, industry experts have outlined key recommendations that could help India maintain its competitive edge in the global tech landscape.
Recap of 2024-25 Budget measures for IT and electronics
In her Union Budget for 2024-25, Finance Minister Nirmala Sitharaman introduced measures aimed at boosting the IT and electronics sectors, including a reduction in customs duties on cellular phones, chargers, and printed circuit boards. These initiatives were designed to support domestic manufacturing, reduce input costs, and improve export competitiveness. As the country prepares for the 2025-26 fiscal plan, technology leaders are now calling for further support to drive innovation and growth.
Focus on Artificial Intelligence (AI), R&D and innovation
One key area of focus is AI. According to Nasscom, India’s AI market is projected to reach $17 billion by 2025, and stakeholders are urging the government to prioritise research and development in this field. According to the Tech Entrepreneurs Association of Mumbai (TEAM), the Union Budget must focus on four pillars: bolstering R&D, supporting startups, advancing workforce training, and enhancing digital infrastructure. Industry leaders have highlighted the need for better infrastructure, particularly in Tier 2 and 3 cities, to foster inclusive growth and ensure that digital advancements reach broader communities.
Ravi Kunwar, Vice President and CEO of HMD India and APAC, emphasised the need for policies that strengthen India’s mobile manufacturing capabilities. He noted the success of the Production Linked Incentive (PLI) scheme and suggested further boosting this initiative to support the localisation of critical components, which would contribute to India’s goal of technological self-reliance. A higher local value addition of more than 18% in the mobile sector could significantly enhance India’s position in the global market.
Rajeev Singh, Managing Director of BenQ India and South Asia, shared similar sentiments, highlighting the importance of AI and digital infrastructure in the upcoming budget. Singh called for government support in the form of research grants, tax incentives, and public-private partnerships to make long-term AI research commercially viable. Additionally, he recommended the expansion of high-performance computing resources and data centres, especially in rural areas, to foster innovation and increase financial inclusion.
Singh also noted that India’s first private semiconductor facility, under development in Andhra Pradesh, should receive additional backing in the budget. The establishment of this facility is seen as a critical step in reducing the country’s dependency on foreign imports, strengthening local manufacturing capabilities, and creating jobs in the technology sector.
The wearable technology industry also stands to benefit from the budget. CP Khandelwal, CEO of PR Innovations and Brand Custodian of Amazfit India, called for measures to promote innovation in wearables. He suggested that incentivising R&D, reducing import duties on essential components, and offering tax benefits to companies investing in advanced technologies would foster further growth in this sector. Additionally, he advocated for policies aimed at enhancing digital adoption and skill development, ensuring India remains a leader in the global wearable market.
As India’s technology sector continues to evolve, the forthcoming Union Budget 2025 is seen as a critical opportunity to implement measures that will support the industry’s growth, foster innovation, and drive economic development across the nation. With AI, mobile manufacturing, and wearables identified as key areas for policy focus, stakeholders are hopeful that the budget will offer the strategic investments needed to position India at the forefront of the global technology landscape.
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