The Union Budget 2025 has received widespread praise from industry leaders for its strategic push toward self-reliant manufacturing, deep tech innovation, and skill development. With significant allocations for MSME support, R&D investments, AI-driven education, and semiconductor advancements, the budget is seen as a catalyst for India’s technological and industrial growth. Key figures from Rockwell Automation, NXP Semiconductors, Tata Technologies, InfoVision, and IESA have lauded the government’s vision, highlighting its potential to strengthen India’s position as a global manufacturing and technology powerhouse.
Dilip Sawhney, Managing Director, Rockwell Automation India
“We commend the Union Budget 2025 for its strategic focus on empowering Micro, Small, and Medium Enterprises (MSMEs), which are crucial to India’s growth narrative. With more than 5.7 crore MSMEs contributing 36% of the nation’s manufacturing output and 45% of exports, these businesses play a vital role in enhancing India’s status as a global manufacturing hub. The budget paves the way for a significant overhaul of India’s industrial and logistics landscape. This bold initiative will significantly benefit manufacturing, warehousing, and supply chain sectors. Furthermore, the National Manufacturing Mission’s emphasis on clean technology manufacturing, including the domestic production of electric vehicle (EV) batteries and solar panels, is a progressive initiative.
Supporting domestic manufacturing and focusing on Industry 4.0 can have a transformative impact on India’s manufacturing landscape. The decision to establish five National Centres of Excellence will enhance AI-based research and development while addressing the growing need for skills in technology-driven manufacturing. The announcement of global skilling partnerships is also a welcome step, ensuring that India cultivates a highly skilled workforce that strengthens its role in the global manufacturing ecosystem. The establishment of a national guidance framework to assist states in supporting Global Capability Centers (GCCs) further demonstrates the government’s commitment to promoting innovation and enhancing global competitiveness. The allocation of ₹20,000 crore to implement a private sector-driven Research, Development, and Innovation initiative is a significant move that will stimulate technological advancements and drive industrial transformation.
These initiatives will undoubtedly accelerate India’s journey toward becoming a sustainable, digitally enabled, and globally competitive manufacturing powerhouse.”
Mr. Hitesh Garg, VP, and India Managing Director, NXP Semiconductors
“The Union Budget 2025 continues to reinforce India’s ambition to be a global leader in technology, with initiatives focussed on driving self-reliant, advanced manufacturing as innovation . The launch of the National Manufacturing Mission is a key step accelerating the ‘Make for India, Make for the World’ vision. Its focus on clean technology and sustainability ensures long-term competitiveness in global markets.
The government’s ₹20,000 crore investment in private sector-led R&D, alongside the Deep Tech Fund, is a strategic move to strengthen India’s leadership in AI, semiconductors, and next-gen manufacturing. The ₹10,000 crore Fund of Funds for startups and enhanced SME/MSME credit facilities will continue to encourage entrepreneurship across the board, and in technology- led innovation, in particular. This, combined with existing policy-driven support for clean energy, will have a far-reaching impact on industries like semiconductors and automotive, accelerating EV adoption, enhancing chip design capabilities, and fostering broader technology advancements. The initiatives around lithium-ion batteries and other components that go into Electric Vehicles will drive up local innovation and manufacture not just of the finished product but also spur the development of a much-needed manufacturing ecosystem.
The plan to establish a national framework for Global Capability Centers in tier 2 cities will help India reap the benefits of its current and continued investments in skills and higher education beyond the metros, thereby creating job local opportunities and curbing urban migration. There is focus on continuing to retain the skills advantage both in the medium and long term, with the establishment of the five National Centres of Excellence and the focus on increasing the student pool at five IITs, and the Atal Tinkering Labs initiative in Government schools across the country.
At NXP Semiconductors, we see Budget 2025 catalysing deep tech innovation and sustainable growth, continuing to set the stage for India’s emergence as a global powerhouse. We are committed to collaborating with policymakers, startups, and industry leaders to drive India’s technological transformation.”
Mr. Warren Harris, CEO & MD, Tata Technologies.
“The budget’s focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for ‘Make in India’ and enhancing the nation’s self-reliance in manufacturing. This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players.
The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India’s youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs.
Additionally, the allocation of ₹500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI, which will benefit both the education sector and the broader technology landscape.”
Mr. Girish Hirde, Global Delivery Head at InfoVision
“We appreciate the Union Budget 2025 announcement and believe that it balances that aspirational, futuristic growth with overall infrastructure development in the nation. The announcement of a Deeptech Fund of Funds to support technological advancements, while providing 10,000 Fellowships for tech research in IITs and IISc, under the PM Research Fellowship Scheme, is going to play a pivotal role in building national capabilities in the field of Deeptech & research. This, coupled with the establishment of Centre of Excellence for AI in Education, established with an outlay of INR 500 CR will prove to be another significant boost for indigenous capabilities and prowess. At InfoVision, we commend these developments and look forward to supporting India’s evolution as a global leader in Deeptech & AI”.
Ashok Chandak, President IESA
“The Union Budget 2025-26 presents several indirect benefits for the Electronics System Design & Manufacturing (ESDM) sector, aligning with key recommendaBons from IESA but has been muted on big announcements. Our focus on startups, R&D, skilling, export support, and conBnued semiconductor manufacturing incenBves has been parBally addressed through mulBple schemes:
• The budget’s provisions for MSME support , Start Up’s ( 5 yr incorporaBon and Fund of Fund) Centers of Excellence (CoEs) in skilling and AI, and reduced Basic Customs Duty (BCD) on display panels and lithium-ion baKeries will enhance local value addiBon in EVs and mobile manufacturing, IT Hardware, Export promoBon schemes, Tax certainty for electronics manufacturing, establishing naBonal manufacturing mission, PresumpBve taxaBon on electronics manufacturing support, etc will also help step towards India’s posiBon as a global electronics manufacturing hub and Atmanirbhar Bharat.
• Further the ₹20,000 crore allocated for R&D, along with 10,000 technology fellowships at IITs, will foster innovaBons and IPR development.
• Revised IT slabs for the middle class will boost disposable income, thereby driving increased consumpBon and demand for consumer electronics.
On posiBve side, Overall 21945 Cr INR has been allocated for ESDM sector (under MeitY) which is significant step compared to last FY. This includes Rs. 9000 crore for Electronics PLI, Rs. 7000 crore for Semiconductor and display manufacturing, Rs. 2000 crore AI Mission, Rs. 1259 crore for R&D, Rs. 575 crore for skilling, Rs. 712 crore for MSIPS/EDF/ Manufacturing Clusters, etc.
However, the budget lacks clarity on ISM 2.0 (incenBves beyond the $10 billion mark) and does not introduce a major PLI scheme for components or a dedicated product creaBon iniBaBve as a growth driver. This could potenBally slow the pace of value addiBon in India’s electronics ecosystem. We remain OpBmisBc that these aspects will be addressed through specific policy measures beyond the Budget announcement”.
Dr. Ajai Chowdhry, Founder HCL, Chairman EPIC Foundation
“The budget offers mixed outcomes for the industry. The addition of Rs 10,000 crore funds of funds and Rs 20,000 crore for deep tech is beneficial for startups seeking VC funding. However, there is no focus on making India a leader in electronic products and chips, crucial for strategic autonomy amid current geopolitics. For startups, there has been no correction in ESOP taxation for startups—a significant oversight. On a positive note, allowing loans between Rs 10-20 crore under credit guarantee schemes will greatly aid startups with their working capital needs. Initiating research and development in the private sector, last year’s plan of Rs. 1 lakh crore has been advanced with a provision of Rs 20,000 crore in this year’s budget. This initiative is highly beneficial for establishing India as a leading nation in product innovation. The opening of the nuclear sector to private companies and the move towards smaller Modular Micro Reactors (MMRs) marks an important step in moving away from fossil fuels and diversifying energy sources. In the future, with the expected increase in Data Centers, nuclear energy will become essential, especially as smaller reactors are being developed worldwide. The National Geospatial Mission is another noteworthy initiative aimed at improving efficiency and promoting development. The establishment of a Manufacturing Mission and enhancing EODB will also play a pivotal role in attracting more investments.“
