Union Budget 2025: Key Announcements for the IT Sector

Strengthening Innovation, Infrastructure, and Entrepreneurship in Tech

The Union Budget 2025 has introduced several initiatives aimed at boosting the IT and tech sectors, with a strong emphasis on innovation, skilling, and infrastructure development. Finance Minister Nirmala Sitharaman highlighted the government's focus on artificial intelligence (AI) in education, establishing a Centre of Excellence (CoE) for AI with a Rs 500 crore investment.

A significant move is the creation of a National Framework to promote Global Capability Centres (GCCs) in tier II cities. This initiative aims to enhance the availability of talent and infrastructure in these cities, supporting the growth of GCCs across India. With around 80% of global firms yet to set up GCCs in India, this move holds great potential to attract more international firms, create jobs, and reduce regional disparities.

Another key announcement is the establishment of a new Fund of Funds for Startups, with an additional Rs 10,000 crore contribution. This fund aims to promote entrepreneurship and further strengthen India’s startup ecosystem, which has already seen significant growth in recent years. The initial Rs 10,000 crore commitment had already catalyzed over Rs 91,000 crore in investments.

Further support for the tech sector includes plans to expand infrastructure in IITs, allowing for the enrolment of 6,500 more students. Additionally, a deeptech Fund of Funds will be explored to encourage technological advancements, and 10,000 fellowships will be provided for research at IITs and IISc under the PM Research Fellowship Scheme.

The budget also focuses on empowering specific groups by announcing a new scheme for 5 lakh women and first-time entrepreneurs from scheduled castes and tribes. These measures are set to drive growth and innovation, making India a key player in the global tech landscape.