Union Budget 2025-26: Industry leaders react to key announcements

The Union Budget 2025-26 sets a transformative path for India's economic and technological growth, with a strong emphasis on artificial intelligence (AI), deep tech, manufacturing, and digital infrastructure. The government has introduced strategic initiatives to enhance skill development, boost local manufacturing, and drive innovation. With increased allocations for semiconductor manufacturing, AI Centers of Excellence, and Production-Linked Incentives (PLI) for electronics, this budget aims to propel India towards becoming a global technology hub. Industry leaders have welcomed these measures, recognizing their potential to create a competitive and future-ready economy.

The Union Budget 2025-26 has drawn strong reactions from industry leaders, particularly in the fields of technology, manufacturing, and digital infrastructure. Here’s what experts have to say about the government's new initiatives:

Gaurav Sahay, Practice Head - Technology & General Corporate, Fox Mandal & Associates LLP

"The Union Budget 2025-26 takes a significant step toward strengthening India's technological landscape by prioritizing AI, deep tech, and digital education. The establishment of AI Centers of Excellence, alongside the expansion of IITs, will foster a robust ecosystem for innovation and skill development. Additionally, the government's focus on supporting deep tech startups through dedicated funding will accelerate advancements in AI, blockchain, and clean energy. These initiatives reaffirm India’s commitment to becoming a global leader in emerging technologies, driving both economic growth and digital transformation. The Government should look at gaining AI sovereignty, competing with the US and China in this space."

Peeyush Vaish, Partner and TMT Industry Leader, Deloitte India

"The establishment of a Centre of Excellence for AI clearly reflects the aspiration of New India to be at the forefront of technology. The government continues to drive its ‘Make in India’ initiative with increased PLI incentives for electronics, exceeding USD 1 billion, and revamping customs duties on components. The increase in allocations for semiconductors is in line with the focus on this industry. The smartphone sector, a major beneficiary of PLI schemes, is a great success story, with India becoming the third-largest exporter of handsets, achieving 40% growth in just one year."

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. Collaborating with state governments to upgrade ITIs into technology hubs will further strengthen this effort.

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, benefiting both the education sector and the broader technology landscape."

Paritosh Prajapati, CEO, GX Group

"This Union Budget 2025 reinforces the government’s commitment to local manufacturing, ease of doing business, and strengthening India’s digital infrastructure. The reduction of basic customs duty on Carrier Grade Ethernet switches from 20% to 10%, aligning it with Non-Carrier Grade switches, is a welcome move that will help prevent classification disputes and support industry growth in meeting the increasing demand for infrastructure. Additionally, the inclusion of 28 more capital goods for mobile phone battery manufacturing will provide a significant boost to domestic lithium-ion battery production. These initiatives align with the vision of Digital India and will accelerate technological advancements in the country."

The Union Budget 2025-26 clearly reflects a vision for strengthening India's position in global technology and manufacturing, with strong support from industry leaders. The focus on AI, deep tech, semiconductor development, and workforce skilling is expected to drive long-term growth and innovation in the country.