Excerpt from ABP Live Article, Published on Jan 21, 2025.
India’s technology sector, valued at $227 billion and growing at an annual rate of 15.5%, is eagerly awaiting the reforms outlined in Budget 2025. With its critical role in shaping the nation’s digital future, the tech industry is pushing for transformative measures to sustain its growth and global competitiveness. The expectations for Budget 2025 India range from increased investment in research and development to enhanced support for startups and improvements in digital infrastructure.
One of the top priorities for Budget 2025 is increased funding for research and development. India currently invests less than 1% of its GDP in R&D, significantly below the global average of 2.3%. To address this gap, the tech industry is calling for tax incentives and grants to boost research in fields like artificial intelligence, quantum computing, and blockchain. Simplified patent processes and collaboration between academia and industry are also seen as essential measures. Startups, the backbone of India’s tech ecosystem, are expecting Budget 2025 India to include measures such as extended tax holidays, a simplified tax regime, and increased funding for government initiatives like the Fund of Funds for Startups. Expanding these benefits to Tier 2 and Tier 3 cities could unlock untapped innovation potential.
With digital infrastructure forming the backbone of technological growth, Budget 2025 is also expected to prioritize the expansion of 5G networks, rural broadband projects like BharatNet, and subsidies for data center development. Additionally, in light of increasing cybersecurity threats, robust frameworks and simplified compliance with the upcoming Data Protection Bill are vital. As the government prepares to announce Budget 2025 India, the tech industry remains optimistic about strategic reforms that could position the country as a global leader in technology and innovation. By addressing these critical areas, Budget 2025 could lay the foundation for a stronger digital economy and sustained growth.
To delve deeper into this topic, please read the full article ABP Live.
