How India’s IT industry envisions the 2025 Union Budget

In anticipation of the 2025–26 Union Budget, industry leaders from across India’s information technology landscape are sharing their hopes and recommendations for how the government can bolster digital transformation, cybersecurity, AI adoption, and technological innovation.

From strengthening data protection frameworks to investing in emerging technologies like AI and agentic automation, their insights highlight the critical role that policy, infrastructure, and regulatory support will play in shaping India’s digital future. Below are perspectives from the IT community, reflecting their pre-budget priorities and recommendations:

1. Rohan Vaidya, Area Vice President, SAARC & India, CyberArk:

“The Union Budget presents a pivotal opportunity to prioritize cybersecurity as a cornerstone of the nation’s economic and technological growth. To secure critical infrastructure, digital ecosystems, and citizen data, we anticipate measures that promote investments in vital security solutions, aligning with India’s vision for a safe and resilient digital economy.

Policies that foster public-private collaboration, cybersecurity skill development, and strong regulatory frameworks will be essential, especially in the face of increasing cyber threats targeting both the public and private sectors. With the implementation of the Digital Personal Data Protection (DPDP) Act, there is a clear imperative to strengthen frameworks for data protection norms.

To realize the full potential of the DPDP Act, it would be reassuring to see budget policies that encourage the adoption of advanced data protection technologies, promote investments in compliance infrastructure, and support awareness initiatives aimed at building a culture of data privacy.”

2. Janak Vakharia, CEO, Xpedeon:

“As we approach the Union Budget, the construction industry is hopeful for a significant boost in government spending on infrastructure projects and affordable housing, which are critical drivers of economic growth and job creation. Construction ERP providers and industry leaders are advocating for tax incentives and subsidies to encourage the adoption of ERP systems and other digital tools.
Such measures can significantly enhance productivity, transparency, and cost efficiency in project management, enabling businesses across the sector to thrive in an increasingly competitive environment.

We further urge the government to focus on policy frameworks that support sustainable construction practices, including incentives for green building initiatives and innovations in energy-efficient technologies. These steps will not only strengthen the sector but also align with India’s broader goals of sustainability and digital transformation.”

3. Arun Balasubramanian, VP & MD, India; South Asia, UiPath:

“With the Union Budget right around the corner, we are confident that the Government of India (GoI) will continue its efforts to achieve Viksit Bharat. The IMF has recently updated its forecast for India, projecting a growth rate of 6.5 percent for FY26, driven by robust domestic demand and an expanding young workforce.

A key area for the GoI to focus on is investing in AI and agentic automation to enhance productivity and efficiency—critical components for economic growth. Gartner predicts that AI investments in India will reach $7.8 billion this year, underscoring the catalytic potential of this technology.

Moreover, providing export incentives for Global Capability Centers (GCCs) will help boost the IT sector. This support will enable these centers to expand their operations and increase contributions to India’s export revenues. We also expect the GoI to increase investments in reskilling initiatives focused on AI, automation, IoT, data analytics, robotics, and cloud computing.”

4. Swapna Bapat, Vice President & Managing Director, India and SAARC, Palo Alto Networks:

“As we approach the 2025-26 Union Budget, Palo Alto Networks looks forward to continued investments in AI, cybersecurity upskilling, and innovation-led initiatives. These measures will prioritize the modernization and security of legacy and new systems while fostering a skilled workforce capable of addressing emerging challenges in a digitally connected world.

These efforts will safeguard essential services and drive the digital transformation of public infrastructure, offering citizens safety and confidence in an ever-evolving threat landscape. The Union Budget 2024 demonstrated a strong commitment to advancing employment, skilling, and economic growth for MSMEs and the middle class. Allocations such as ₹500 crore for the India AI Mission and ₹2 lakh crore for initiatives aimed at creating over 4 crore job opportunities have laid a robust foundation for India’s digital and economic transformation.

Since then, we’ve witnessed remarkable advancements in India’s tech landscape, underscored by the publication of the draft Digital Personal Data Protection (DPDP) Act on January 3. This step reinforces India’s capability to strengthen its digital infrastructure and safeguard its growing digital economy.”

5. Pramod Sharda, CEO, IceWarp India and the Middle East:

“As we approach the Union Budget 2025, we anticipate strategic reforms that bolster India’s digital ecosystem and drive technological self-reliance. The past few years have highlighted the transformative power of digital adoption across industries, and it is imperative to sustain this momentum through forward-thinking policies. We hope the government continues to prioritize investments in digital infrastructure, particularly in Tier 2 and Tier 3 cities, to bridge the digital divide and unlock the untapped potential of these regions. A reduction in GST rates on enterprise technology solutions would encourage businesses to adopt advanced tools, boosting productivity and fostering innovation.

Additionally, it is crucial to address cybersecurity, as the rise in digital adoption brings with it the need for robust frameworks to safeguard data and digital assets. Incentivizing investments in R&D for indigenous technology development will also be a step toward achieving digital independence. Startups in the technology domain are a driving force behind India’s economic growth. We look forward to budgetary provisions that support their scaling efforts through relaxed compliance, simplified taxation, and increased funding opportunities.”

6. Anand Jain, Co-Founder and Chief Product Officer, CleverTap:

“With the upcoming budget, it’s crucial to prioritize emerging sectors like SaaS, Web3, and AI. Together, they are transforming industries and positioning India as a global technology leader. Clear regulatory frameworks for digital assets, smart contracts, and SaaS platforms will help foster innovation, attract investment, and enhance competition in these high-growth areas. As a SaaS company, we see immense potential in policies that drive the adoption of cutting-edge technologies like AI. Initiatives such as the Centers of Excellence for Artificial Intelligence, the INDIAai mission and the ‘Make AI in India’ programs are commendable. Expanding incentives for AI-driven solutions across governance, education, and healthcare could further accelerate India’s digital transformation and solidify its leadership in the global AI landscape.”

7. Sunil Sharma, Vice President – Sales, Sophos India & SAARC:

“With the recent introduction of the Digital Personal Data Protection (DPDP) Act rules, India has made significant strides in establishing a strong foundation for data protection and privacy. Ahead of the Union Budget 2025-26, we look forward to measures that will further strengthen the nation’s cybersecurity framework.”

8. Rahul Garg, Founder & CEO, Moglix:

“The Union Budget 2025 presents a defining opportunity to establish India as a global manufacturing and economic leader while advancing the vision of a Viksit Bharat.”

9. Mridu Andotra, Founder & CEO, GeniusMentor:

“I believe the Indian education system is on the cusp of a technological revolution, and the upcoming budget presents a crucial opportunity to solidify our commitment to integrating AI into the learning experience. While the National Education Policy (NEP) 2020 and its 2024 updates have laid the groundwork for introducing AI in schools and colleges. Although the government allocated INR 10,300 crore to the IndiaAI Mission in the 2024-25 budget, this initiative encompasses broader AI development, not solely education.

To truly empower India’s youth and establish the nation as a leader in AI, the upcoming budget must prioritize a dedicated budget allocation for AI in schools and colleges. A significant increase is needed, potentially aiming for 5-10% of the overall education budget, to match the ambitious goals outlined in the NEP 2020. This investment should focus on providing cutting-edge AI infrastructure, including high-speed internet access, advanced digital tools, and dedicated AI labs in schools and colleges. It should also include provisions for upskilling educators in AI pedagogy and developing engaging, hands-on AI learning experiences for students.”

10. Rajarshi Bhattacharyya, Co-Founder, Chairman and Managing Director, ProcessIT Global: 

“The Union Budget 2025-26 should further ease policies to promote the growth of the MSME sector, which is considered the foundation of the Indian economy. These organizations should have easy access to credit from financial institutions, and benefit from a reduction in high interest on loans and related requirements to produce personal collateral with the complexities in the process also getting eliminated, making it much simpler.  The government should empower MSMEs by enabling skill development and entrepreneurship.  

Secondly, in today’s interconnected digital landscape, cybersecurity and data privacy are key and the government should focus on robust digital infrastructure, cybersecurity, and data protection, and strengthen its cybersecurity framework.  The government should allocate significant funds to develop strong cybersecurity infrastructure and promote best practices across Government/PSUs, Healthcare, and Financial Organizations, among others.  There should also be an increased focus on investments in R&D, cutting-edge technologies, and security measures in addition to skill development in the domain.”

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