Indian Finance Minister Nirmala Sitharaman, pictured above [File]
| Photo Credit: AP
Tech leaders in India welcomed announcements from the Union Budget 2025 presented on Saturday, February 1, 2025, by Union Minister of Finance Nirmala Sitharaman.
A major update was the removal of income tax for those earning up to ₹12 lakh per year, which is expected to stimulate consumer spending. This was hailed by gadget-makers in the country, while tech leaders appreciated the expanding AI centres of excellence, and investments in AI-related education.
“We welcome the hon’ble Finance Minister’s announcements of establishing a Centre of Excellence for AI in Education and creating a deep tech fund to catalyze future startups. As the Economic Survey 2025 highlights, India must capitalize on AI opportunities and leverage its young and dynamic population to create a tech-forward workforce for India and for the world. This resonates deeply with Microsoft’s work in the country and our commitment to put AI in the hands of everyone. We recently announced our plans to equip 10 million Indians with essential AI skills by 2030,” said Puneet Chandok, President, Microsoft India and South Asia.
Training Indian tech workers in the use of AI tools in order to transition to a more advanced workforce was also a major area of interest for other tech leaders.
“The government’s focus on leveraging technology as a catalyst for growth is key to propelling India towards its global aspirations, ensuring innovation drives progress and positions the nation as a leader on the world stage. The announcements to set up five National Centres of Excellence for skilling, Atal Tinkering labs to foster innovation, Deeptech Fund of Funds and setting up of the CoE in AI for Education will create a systematic and progressive movement towards building future-ready skills needed for an AI economy. These will not only harness the power of emerging technologies to unlock innovation but also drive sustainable growth for the country,” said Ajay Vij, Senior Country Managing Director, Accenture in India.
AI development requires significant investment in energy generation and quantum computing, which are also fields in which the government is offering support to businesses.
“India’s Union Budget lays a strong foundation for a tech-driven future, emphasizing research-led growth, digital innovation, and workforce development—key to a globally competitive economy. Additionally, the budget has emphasized on the national framework for Global Capability Centers (GCCs) in Tier-2 cities presents a huge opportunity to the technology sector strengthening India’s position as a global technology hub. Furthermore, the Deep tech Fund of Funds and 10,000 PM Research Fellowships will drive advancements in AI, semiconductors, quantum computing, and clean energy—fostering high-impact startups and self-reliance in critical technologies,” said Sumeet Mathur, Senior Vice President and Managing Director, ServiceNow India Technology and Business Center.
However, there was some disappointment as the existing cryptocurrency regulations and tax rules were not revised or significantly relaxed in any way. Many Indian investors feel burdened by the high tax on their crypto gains as well as the TDS for crypto transactions. Other investors want more support from the authorities in case of crypto scams and hacks.
“We were hopeful that the government would take steps to rationalize the tax structure on VDAs, but unfortunately, that has not materialized. However, the inclusion of VDA governance in the Finance Bill is a positive step, bringing in more regulatory clarity, reflecting the growing adoption of digital assets and acknowledging the impact they are making on the economy. We are still reading the fine print to understand the broader implications,” said Ashish Singhal, co-founder of CoinSwitch and Lemonn.
Published – February 03, 2025 01:50 pm IST
