Budget 2025: Incentives for the technological sector

A roadmap for growth, fiscal prudence & digital transformation

Mumbai: Finance Minister Nirmala Sitharaman presented the Union Budget for the 2025-26 financial year today, achieving a historic milestone as the first finance minister to deliver the budget for eight consecutive years. Before her presentation, she was warmly welcomed by President Droupadi Murmu, who offered her the customary ‘dahi-cheeni’ (curd and sugar), a traditional ritual believed to bring good fortune and sweetness ahead of the government’s financial announcements. This year’s budget was widely expected to prioritize fiscal discipline while introducing measures to boost consumption, underscoring the government’s commitment to economic stability and growth amid ongoing challenges.

MadeInMedia.in spoke to opinion makers in technology, start-up, AI, education, edtech, defence, drone, electronics sectors.

Ram Ramalingam, Founder & CMO, GeniusMentor

Budget 2025 presents a promising roadmap for India’s economic and technological future, emphasizing research, skilling, and entrepreneurship. The ₹20,000 crore allocation for private-sector-driven R&D, along with the Deep Tech Fund of Funds, signals strong support for innovation. The five National Centres of Excellence for skilling are a step toward aligning education with industry needs. However, challenges lie in execution—past initiatives have faced delays and inefficiencies. The effectiveness of AI-driven education and startup funding will depend on regulatory clarity and seamless disbursement. While the budget sets ambitious goals, its success will hinge on how well these policies translate into real-world impact.

Mridu Andotra, Founder & CEO, GeniusMentor

Budget 2025 demonstrates a clear commitment to India’s future growth, with a strong emphasis on technological advancement, education, and entrepreneurship. The expansion of IITs and the creation of a Centre of Excellence in AI for education reflect a vision aimed at equipping students with cutting-edge skills. The push for broadband connectivity in rural schools and PHCs enhances digital inclusivity, while the Fund of Funds for startups, alongside financial support for first-time entrepreneurs from marginalized communities, promotes inclusive economic growth. A key highlight is the introduction of a startup credit ecosystem, particularly beneficial for women and entrepreneurs from SC and backward communities. The ₹2 crore loan initiative for women entrepreneurs promises to encourage new ventures and diversify the education sector. While these initiatives hold great potential, their success hinges on efficient fund allocation and effective execution, making this budget a potential catalyst for India’s transformation into a global knowledge and innovation hub.”

Sai Pattabiram, Founder & MD, Zuppa Geo Navigation Technologies Pvt Ltd

Government’s investment into drone component and subsystem development is a  National  need of the hour as recent findings by the Army has revealed rampant use of Chinese origin components and subsystems including critical electronic systems in drones supplied to them which is a direct threat to  National Security .
The government should invest from its Research , Development & Innovation ( RD&I ) fund of Rs 20,000 crores  as well the proposed Deep Tech funding initiatives announced in the Budget to mitigate the National Security threat as well as unlocking huge global potential as a China +1 source for drones and drone components.

It  should recognise this as an opportunity to evolve into a Global Drone hub of secure non Chinese drones and components by designating it as a key focus area for deployment of these funds under these initiatives in the form of Design Linked Incentives ( DLI ) coupled with a PLI for Indian OEM’s using only Indian Designed Developed and Manufactured Drones ( IDDM ) .
Investing into building this component level ecosystem for drones will not only resolve the immediate threat to National Security but will also facilitate shifting these elements of the global supply chain from their  current Chinese origins to Indian manufacturing ( a key focus area )  especially  given India’s reputation as a trusted , ethical technology partner as opposed to the growing global trust deficit on the part of China .

This becomes all the more important because as a dual use technology where the same drone can be used interchangeably by Defence, Civilian and non-state operators increases the direct risk to National Security exponentially.

Additionally, investment at these foundational levels of sunrise technologies will unlock potential for their adoption in various other sectors like automobiles, robotics and other unmanned use cases. As these sunrise Technologies evolve, investments in RD&I mentioned above will dovetail perfectly into the proposed Deep Tech fund and unlock global scale opportunities for start-ups and SMEs involved in these  sunrise sectors resulting in manifold ROI for the government in multiple ways.