
The Union Budget 2025 has been lauded by technology leaders for its strategic focus on innovation, AI, and digital infrastructure. Shouvik Mazumdar, Senior Director of Front-end Engineering at Ascendion, emphasized how the budget’s forward-thinking policies will accelerate India’s position as a global technology hub while fostering inclusive growth across industries.
“The Union Budget 2025 shows a proactive approach by the Government in positioning India as a global leader in technology, innovation, and economic growth,” Mazumdar stated. The government’s decision to allocate ₹20,000 crore to fuel private sector-led research and innovation underscores its commitment to driving progress in critical sectors like healthcare, agriculture, and IT.
A significant highlight of the budget is the creation of Centres of Excellence for cutting-edge technologies, particularly in artificial intelligence (AI). “These centers will foster stronger partnerships with academic institutions, develop new skills, and ensure India has a future-ready workforce that can meet the global demands of the dynamic tech sector,” Mazumdar said. This initiative aligns with India’s broader goal of becoming a leader in Gen AI and other transformative technologies.
Mazumdar also praised the government’s focus on supporting startups and micro-enterprises. “Major schemes like the enhancement in credit guarantee covers for various sectors and investment in the BharatTradeNet system for international trade will help support startups and micro enterprises to enable the development of new technologies and services,” he noted. These measures are expected to boost entrepreneurship and facilitate innovation-driven growth across industries such as healthcare, BFSI, retail, and telecom.
Investments in Atal Tinkering Labs and digital literacy programs were also highlighted as critical enablers for preparing India’s youth for a technology-focused economy. “These programs will equip India’s youth with the skills required to thrive in a digital-first world,” Mazumdar said.
The budget’s focus on regulatory reforms—including the revamping of the KYC process and increasing FDI limits in the insurance sector—was commended for creating a more streamlined and business-friendly environment. “These reforms will help streamline operations for tech businesses, making it easier to innovate and scale,” he added.
Additionally, enhanced broadband and rural connectivity investments are expected to drive digital inclusivity across regions, expanding the reach of India’s digital economy. “These initiatives showcase the Government’s holistic approach towards transforming India’s technological ecosystem, which supports innovation and prepares the nation to lead in the global tech landscape,” Mazumdar concluded.
The Union Budget 2025’s comprehensive focus on R&D, AI, and digital infrastructure is set to strengthen India’s position in the global technology arena, driving economic growth and fostering technological innovation across industries.