IT & Electronics Leaders Urge Budget Boost for Tech Innovation & Growth

Ahead of the Union Budget 2025-26, IT and electronics industry leaders call for incentives to strengthen Make in India, semiconductor manufacturing, AI development, and digital infrastructure. They emphasize tax relief, skill development, and support for SMEs to foster growth and innovation in the tech sector.

As the Union Budget 2025-26 approaches, prominent figures in the Information Technology (IT) and electronics sectors are making strong appeals for policy incentives aimed at bolstering India's tech landscape. Among their demands are measures to support the Make in India initiative, increased investments in semiconductor production, and enhanced resources for artificial intelligence research and development.

Kapal Suresh Pansari, Managing Director of RP Tech, expressed optimism that the upcoming budget will drive sustainable growth and create new opportunities. He emphasized that incentives aimed at infrastructure and innovation could significantly improve the ICT supply chain, positioning India as a leading global technology hub.

The semiconductor industry is on the cusp of major expansion, according to Hareesh Chandrasekar, CEO of AGNIT Semiconductors. He advocates for expedited customs procedures, lower GST for local components, and financial support to spur domestic semiconductor manufacturing. Similarly, IT sector stakeholders highlight the critical role of AI and envision robust funding for generative AI and regulatory frameworks to stimulate technological advancement.

Infrastructure and construction are forecasted to emerge as key economic drivers, notes Nirmalya Chatterjee from Nemetschek Group, with anticipated government initiatives in tech integration. Meanwhile, skill development and job creation remain pivotal concerns for leaders like Gagan Arora of Vertex Global Services, who urges the government to ramp up vocational training and education investments.

The upcoming budget is expected to unveil tax incentives for startups and MSMEs, aiding their growth and job creation potential, as noted by Raja Lahri from Grant Thornton Bharat. Mayank Maggon of Techchefz Digital hopes simplicity in regulatory compliance will enhance innovation among SMEs.

In the realm of AI, industry leaders, including A S Rajgopal of NxtGen, advocate for a dedicated budget to harness AI across government sectors, setting a precedent for industry adoption.

(With inputs from agencies.)