New Delhi, January 29: Ahead of the Union Budget for 2025-26, stakeholders in the Information Technology (IT) and Electronics sectors are advocating for various incentives to bolster Make in India initiatives. They are calling for increased investments in semiconductor manufacturing, funding for artificial intelligence (AI) research and development, tax relief for tech startups, infrastructure enhancements, skill development programs, and support for digital infrastructure. Union Finance Minister Nirmala Sitharaman is set to present the budget on February 1 in Parliament.
Kapal Suresh Pansari, Managing Director of RP Tech, expressed optimism that the budget will foster sustainable growth and create new opportunities within the sector. He stated, “Incentives for Make in India initiatives and infrastructure investments could significantly strengthen the ICT (Information and Communications Technology) supply chain. Furthermore, policies that promote innovation and skill development will be crucial in reinforcing India’s status as a global technology leader.”
The semiconductor industry is on the brink of substantial growth. Hareesh Chandrasekar, CEO and Co-Founder of AGNIT Semiconductors, emphasized the need for a ‘green channel’ to expedite customs clearance for semiconductor materials, thereby streamlining the manufacturing process. He suggested, “Implementing lower GST rates on domestically produced components, reducing import duties on semiconductor-grade inputs, and providing zero to low-interest funding for local companies can significantly boost the growth of home-grown semiconductor manufacturers.” He also recommended government-backed Venture Capital funds and incentives to attract NRI engineers from global semiconductor firms to fill talent shortages.
The future of the IT sector is increasingly tied to AI advancements. Narinder Kumar, CEO of TO THE NEW, expressed hopes for substantial funding for generative AI research and the creation of a regulatory sandbox to encourage experimentation and innovation in AI. Kumar also anticipates enhanced export incentives for IT exports, particularly in generative AI, to improve India’s competitiveness on the global stage.
On the infrastructure side, Nirmalya Chatterjee, Country VP and MD at Nemetschek Group, highlighted the essential role of technology integration in driving growth in construction and infrastructure. He noted, “The Union Budget FY26 is expected to emphasize infrastructure and construction as vital components of economic growth, focusing on increased investments and technological integration.”
A significant concern for industry leaders is the urgent need for job creation and skill development. Gagan Arora, founder and CEO of Vertex Global Services, underscored the importance of skilling programs, especially in emerging technologies. “The government should prioritize job creation and skill development, enhancing access to vocational training and higher education through targeted investments in skill development initiatives.
