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Budget 2025 Impact to IT Industry

The Union Budget 2025 is anticipated to significantly influence India’s Information Technology (IT) industry, with a strong emphasis on Artificial Intelligence (AI), digital infrastructure, and skill development. Industry leaders are optimistic about transformative allocations aimed at advancing India’s digital economy. Key expectations include bolstering AI research, providing tax incentives for startups, funding emerging technologies, and prioritizing skill development. Emphasis on Geographic Information Systems, cybersecurity infrastructure, and sustainable innovation reflects a vision to balance technological advancement with ecological and societal responsibilities.

The technology sector is hopeful that the government will continue to enhance digital infrastructure and position India as a hub for AI. There is an expectation for continued tax rebates and subsidies for tech companies, along with a focus on job creation and skill development. Stakeholders also advocate for promoting startup-specific investment funds and supporting tokenization models to enhance funding access for early-stage and growth-stage startups in the technology field.

In the previous budget, the government proposed spending INR 1,16,342 crore on IT and Telecom, indicating a strong commitment to the sector. The Finance Minister also proposed raising the basic customs duty from 10% to 15% on printed circuit board assembly for certain telecom equipment to strengthen the domestic manufacturing sector

Overall, the Union Budget 2025 is expected to play a pivotal role in positioning India as a global leader in AI and digital transformation, with strategic investments and policies aimed at fostering innovation, supporting startups, and developing a skilled workforce.

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