The Union Budget 2025 reinforces India’s commitment to a technology-driven, innovation-led economy, setting the stage for global leadership in digital transformation and DeepTech. The government’s strategic focus on AI, startup ecosystem growth, research, and skilling underscore its vision for a future-ready India.
Some key aspects that will strengthen India’s digital and economic leadership include:
1. Boosting Research & Innovation: A strong commitment to research, innovation, and DeepTech development is essential for positioning India as a global technology leader. Recognizing this, the government has proposed exploring a DeepTech Fund of Funds to catalyse next-generation startups. This initiative aligns nasscom’s recommendations for structured DeepTech funding, ensuring greater access to patient capital for early stage and growth-stage startups. Such a fund, when implemented, can help drive India’s leadership in frontier technologies such as AI, quantum computing, semiconductors, and space tech.
The government has also announced a new INR 10,000 crore Fund of Funds to improve capital access and risk diversification to strengthen India’s startup ecosystem.
Additionally, the ₹20,000 crore allocation for private-sector-led R&D will accelerate technological advancements.Coupled with the PM Research Fellowship Scheme, aimed at supporting 10,000 researchers at IITs and IISc over five years, will enable startups and researchers to develop and commercialize cutting-edge technologies, reinforcing India’s position as a global hub for DeepTech innovation.
2. Strengthening Future-Ready Talent & Education: The budget’s commitment to skill development through measures such as expanding IIT capacities and establishing 50,000 Atal Tinkering Labs in government schools are crucial development to strengthening India’s competitive advantage and position as the Digital Talent Nation. Moreover, the launch of a ₹500 crore AI Centre of Excellence for education and the establishment of five National Centres of Excellence for Skilling are forward-looking initiatives that align workforce capabilities with evolving industry demands.
3. Supporting the growing gig economy: The government has announced extending healthcare support under the PM Jan Arogya Yojana which is likely to benefit nearly 1 crore gig workers. Provision of dedicated ID cards and registration on the e-Shram portal would enable these gig workers to avail the benefits of social security schemes.
4. Digital Public infrastructure & focus on clean tech: Strengthening digital public infrastructure and clean energy is pivotal to India’s long-term economic and sustainability goals. The Clean Tech Manufacturing Mission is a crucial step in boosting domestic value addition and advancing sustainability in data centres and EV mobility infrastructure. Further, the expansion of BharatTradeNet to streamline trade documentation and financing is a strategic move to enhance efficiency and bolster India’s trade ecosystem. Decision to launch the National Geospatial Mission for modernising
land records and infrastructure planning is likely to create new market opportunities for space sector enterprises.
5. Ease of Doing Business & Global Competitiveness: The budget has laid a sharp focus on enhancing ease of doing business for companies. This is extremely crucial for India to create its global competitiveness. Measures such as a national guidance framework to help states promote and scale up GCCs is a significant step towards fostering sustainable growth in these regions. Additionally, the increase in the eligibility threshold for Safe Harbour Rules is a welcome step toward enhancing competitiveness and operational efficiency for GCCs in India. However, further clarity is needed to ensure its full impact in driving a more conducive and predictable business environment. The announcement on block assessment for three years on transfer pricing is a good step and will hopefully help ease assessment for past years.
Further, decision to introduce Jan Vishwas Bill 2.0, decriminalising over 100 legal provisions, formation of a High-Level Committee for regulatory reforms in non-financial sector and launch of an Investment Friendliness Index in 2025 to encourage states to improve their investment climates by adopting best practices are likely to further enhance the EoDB.
The Union Budget 2025 builds on India’s technology-first growth strategy and sets the stage for a future-ready, innovation-led economy. We will continue collaborating with the government to operationalize these measures and will share more details as we assess the fine print of the Budget.more details as we assess the fine print of the Budget.
