Budget 2025: Boost to PLI scheme, tax reliefs for infrastructure investments and more on tech industry wishlist
Founder, Director of Avaali Solutions Pvt Ltd, Ms. Srividya Kannan’s a article published in timesofindia website.
As India gears up for the Union Budget 2025, the tech industry is watching closely, anticipating key policy measures that could drive innovation, digital transformation, and AI adoption. With the government’s focus on “Digital Bharat” and the growing emphasis on self-reliance in technology, industry leaders are expecting incentives for the PLI scheme, AI research, and 5G expansion. Additionally, startups and IT firms are hoping for tax relaxations, regulatory clarity on data protection, and increased investments in digital infrastructure. Here’s the budget wishlist of the tech industry.
Gandharv Sachdeva, Country Head, India, Hybrid
“The digital marketing sector anticipates several key initiatives in the upcoming Union Budget 2025. These include incentives for AI and automation in marketing, reduced GST on digital ads, and clearer data privacy regulations to build consumer trust. The expansion of internet access to Tier 2 and 3 cities will unlock new business opportunities, while government-supported skill development programs will help bridge the skilled labor gap. These measures will foster innovation, enhance efficiency, and improve ROI for businesses across India.”
Amit Khatri, Co-Founder, Noise
“India’s electronics industry has become a pivotal driver of economic growth with domestic production projected to reach $300 billion by 2026. This expansion underscores the sector’s role in shaping India’s global standing, fueled by initiatives like Make in India, Digital India, and Skill India, which position technology as a cornerstone of the country’s economic development. To sustain this trajectory, bolstering manufacturing efforts through programs like the PLI scheme, reducing import dependencies and duties, building infrastructure to boost components production, and fostering global partnerships will further enhance India’s competitiveness in the global value chain. For instance, our collaboration with Amber has helped us underscore the impact of local manufacturing capabilities. In addition to this, strategic investments in R&D are essential to spur innovation, enabling the development of advanced solutions that cater to evolving consumer needs. An innovation ecosystem can fuel growth and global leadership, while measures to counter inflation and encourage discretionary spending are imperative.”
Srividya Kannan, Founder and CEO, Avaali on GCCs, IT sector, AI tech and workforce
“The government should consider extending or introducing tax exemptions and export earnings incentives for GBS/GCC units. Lower operational costs and streamlined compliance frameworks are potential focus areas to attract new foreign direct investments (FDI). To help GBS units transform into strategic value drivers rather than cost centers, the budget should emphasize advanced technology adoption incentives. The 2025 Union Budget should prioritize building a dynamic AI-driven ecosystem that accelerates innovation, enhances workforce capabilities, and strengthens India’s global technological leadership. Targeted incentives for AI research, automation, and digital transformation will empower businesses to drive efficiency and competitiveness on the world stage. To sustain India’s position as a digital talent hub, increased investment in upskilling programs, industry-academia collaborations, and inclusivity initiatives—especially for women in tech—will be essential.”