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Union Budget 2025: Technology remains a growth driver

With key investments in AI, startups, and skilling, Union Budget 2025 aims to drive economic growth, digital expansion, and a future-ready workforce.

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Voice&Data Bureau
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Technology in Budget

By Jaideep Ghosh

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The Union Budget 2025 presented by the Finance Minister Nirmala Sitharaman builds on previous editions by retaining its focus on the poor, women, youth, and farmers. The government's fiscal strategy aims to boost consumption through tax cuts and a reduced direct reliance on public capital expenditure, targeting a lower fiscal deficit: an ambitious approach.

The budget outlines significant investments in people (through skilling), the economy, and innovation. Key skilling initiatives include establishing five National Centers of Excellence in global partnerships, expanding capacity at IITs and medical colleges, launching enhanced research fellowships at IISc and IITs, creating 50,000 new Atal Incubation Centers in schools, funding private-sector R&D, and providing broadband connectivity to all government schools and public health centers.

In addition, a Centre of Excellence in Artificial Intelligence for education is set to be established with an outlay of Rs 500 crore, reinforcing the India AI Mission. The budget also signals a fourfold increase in ‘budgeted funding’ for the India AI Mission in FY26 compared to FY25.

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The National Manufacturing Mission, along with a rationalisation of import duties on key electronics components, is expected to strengthen the domestic ecosystem for lithium-ion batteries for EVs and mobile devices, and clean-tech manufacturing. Meanwhile, startups will benefit from a new Fund of Funds, which includes a fresh Rs 10,000 crore contribution, and the introduction of a Deep Tech Fund of Funds.

Overall, the government underscores that a skilled workforce, robust infrastructure, technology, and digital connectivity are essential to propelling India toward a more inclusive future.

The author is a former Partner at KPMG in India.

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