DBT Bureau
Bengaluru, 1 February 2025
Leaders of Indian technology industry are expecting the measures proposed in the Union Budget 2025 will spur demand for higher technology spending. Moreover, startup ecosystem is likely to get a leg up from the measures proposed in the budget.
Here are some of the comments of industry leaders:
1- Joseph Sudheer Thumma, Global Chief Executive Officer & Managing Director, Magellanic Cloud
The Union Budget paves the way for holistic and fast-paced rise of the country as an economic super house. Pertaining to technology industry, the provisions and initiatives announced to setting up of Centre of Excellence for AI as well as special fund focused on deep tech, will further place India at the global centre stage of revolution. With reference to focus on employment and skilling for the youth, the Union Budget provides the right impetus to gain industry-relevant skillsets and opportunities. Furthermore, the ecosystem also stands to benefit out of the opportunities arising for Industry 4.0 inclination for domestic manufacturing push with IoT and smart tech capabilities expected to gain prominence. Overall, the five engines of growth are well thought-off and the onus is on the industry to play its part.
2- J S Gujral, Managing Director, Syrma SGS Technology
The Union Budget 2025-26 presents a balanced approach to strengthening India’s manufacturing and electronics sector. The National Manufacturing Mission announced, along with policy support for clean technology manufacturing, will further solidify India’s position as a global manufacturing hub. The government’s focus on domestic value addition, with a focus on manufacturing of EV batteries, solar PV cells, and electronics, is a step towards enhancing self-reliance and sustainability.
The emphasis on skill development through initiatives such as establishing National Centers of Excellence aligns with the need for a highly skilled workforce in Industry 4.0. This, along with targeted policies for MSME growth and global supply chain integration, will create new opportunities for businesses like ours.
Additionally, the push for R&D and innovation with dedicated financial support will help drive advancements in emerging technologies. The government’s continued commitment to improving ease of doing business through a modern, trust-based regulatory framework is a welcome move. Streamlining approvals, updating outdated regulations, and reducing compliance burdens will enable faster innovation and greater competitiveness for industries like electronics manufacturing.
While certain duty revisions will require careful industry evaluation, the overall budget signals a strong commitment to long-term industrial growth. We look forward to leveraging these opportunities to expand our capabilities and contribute to India’s growing role in global electronics manufacturing.
3- Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd
We welcome the policies stated in Union Budget 2025-26 by the Hon’ble Finance Minister, which gives a strong push towards EV adoption, accelerating the development India’s electric vehicle ecosystem. The reduction in customs duty on lithium and other important raw materials will significantly lower input costs for lithium-ion battery manufacturing, making EVs more affordable to consumers while boosting domestic production.
The introduction of a national manufacturing mission for clean tech industries is another commendable move. By strengthening the ecosystem for EV batteries, motors, and controllers, this initiative will accelerate India’s transition to sustainable transportation. The recognition of MSMEs as the ‘2nd engine’ of economic growth in the Union Budget 2025 will boost sectoral confidence. The fiscal policies stated to support MSMEs will have a multiplier effect on various sectors, including accelerating India’s e-mobility revolution. We are confident that the expanded tax bracket will enhance the purchasing power of the middle class, which will positively impact EV industry in India.
4- Rishi Das, Executive Director & CEO, IndiQube
The Union Budget brings a host of positives for the Indian startup ecosystem. The new Fund of Funds, with an additional ₹10,000 crore contribution, is a significant boost, ensuring greater access to capital, fostering innovation, and enabling startups to scale faster. The proposed DeepTech Fund of Funds is also a positive change, set to catalyze the next generation of startups in cutting-edge technology domains.
Additionally, the strong focus on skill development—through infrastructure expansion in IITs, the establishment of a Centre of Excellence for AI, and the addition of 10,000 medical college seats—will help build a robust talent pipeline to meet the evolving needs of the industry. This forward-looking approach will further strengthen India’s position as a global hub for innovation and entrepreneurship.
5- Sakshi Shah, Founder of GoodLives
The Union Budget 2025-2026 demonstrates a strong commitment to nurturing India’s startup ecosystem. The additional ₹10,000 crore Fund of Funds is a crucial step in addressing the funding challenges that many startups face, helping them scale and sustain growth. What stands out even more is the dedicated support for first-time women and underrepresented entrepreneurs. Building a business requires not just capital but also confidence, and this initiative will encourage more diverse voices to enter the entrepreneurial space. At GoodLives, we believe in holistic growth both personal and professional and this move will empower many to take the leap into entrepreneurship with greater assurance. It’s heartening to see such inclusive steps being taken to fuel innovation and progress in India.
