Budget measures on AI, startups, GCCs to spur next phase of growth for India's economy: Tech experts

New Delhi: A slew of measures around technology and AI announced in the Union Budget is a step towards a stronger Digital India and AI-driven modernisation, and would play a crucial role in shaping the next phase of growth for India's economy, according to top industry voices.

Puneet Chandok, President, Microsoft India and South Asia said it is heartening to see the government's vision of building Viksit Bharat by 2047 with AI and technology in the Union Budget 2025. There is no doubt AI has the potential to transform every sector of Indian society, from boardrooms to classrooms, commerce to communities, and finance to farmers, he said.

"We welcome the Finance Minister's announcements of establishing a Centre of Excellence for AI in Education and creating a deep tech fund to catalyse future startups. As the Economic Survey 2025 highlights, India must capitalise on AI opportunities and leverage its young and dynamic population to create a tech-forward workforce for India and for the world, Chandok said.

Yezdi Nagporewalla, CEO of KPMG in India described Saturday's announcements as a strong blueprint for India's economic ascent.

"The emphasis on skilling initiatives, particularly through the establishment of 50,000 Atal Tinkering Labs and the Centre of Excellence in Artificial Intelligence, will empower our youth with the skills needed to excel in a digital economy. Moreover, the inclusive measures aimed at supporting the start-up ecosystem, women entrepreneurship and rural prosperity, underscore a balanced and equitable approach to development," Nagporewalla noted.

Strategic initiatives to boost trade and exports, such as the Export Promotion Mission, and BharatTradeNet, the digital public infrastructure for seamless trade documentation and financing, complemented by the Unified Logistics Platform, "will significantly enhance the competitiveness of Indian businesses on the international stage", according to Nagporewalla.

Arundhati Bhattacharya, Chairperson and CEO of Salesforce India believes that India stands at a defining moment, where AI-driven innovation, digital infrastructure, and a future-ready workforce will determine its global leadership in the digital economy.

"The Union Budget 2025 is more than a fiscal plan, it is a bold blueprint for a stronger Digital India, prioritising technology-led development, AI-driven modernisation, and inclusive economic growth. As someone who has witnessed India's financial and technological evolution, I see this budget as a pivotal inflection point in our journey towards a Viksit Bharat -- one that is built on innovation, sustainability, and inclusivity," she said.

Citing the Union Budget announcements on advancing AI and deeptech through initiatives like the DeepTech `Fund of Funds' and 10,000 fellowships for technological research in IITs and IISc, she said the measures reflect a vision for India to lead in automation and emerging technologies.

The focus on Global Capability Centers (GCCs) in Tier-2 cities will further unlock AI-powered digital services, fostering regional innovation and new employment opportunities at scale, she noted.

Warren Harris, CEO & MD, Tata Technologies said the allocation of Rs 500 crore for a Centre of Excellence in Artificial Intelligence (AI) for education underscores the importance of fostering innovation and research in this segment, which will benefit both the education sector and the broader technology landscape.

"The budget's focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for 'Make in India' and enhancing the nation's self-reliance in manufacturing. This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players," Harris said.

The Internet and Mobile Association of India (IAMAI) termed the initiatives as forward-looking and said it underlines government's commitment to Indiaâs digital economy, startups, and gig workforce.

The new Fund of Funds, with expanded scope and a fresh contribution of another Rs 10,000 crore will provide impetus to India's growing start-up ecosystem, IAMAI said also highlighting government's decision to extend the start-up incorporation window by five years, thereby enabling start-ups incorporated until April 1, 2030, to avail benefits under Section 80-IAC of the Income Tax Act.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Sector Leader, PwC India too believed that the Budget 2025 cements India's leadership in the global digital economy given its strong focus on AI, deep tech, and digital infrastructure.

"The Rs 500 crore allocation for a Centre of Excellence in AI reflects the government's commitment to fostering innovation, future-ready talent, and national competitiveness...By prioritising AI and emerging technologies, this budget lays a strong foundation for Indiaâs dominance in the global tech landscape," Ahuja said.

According to Vivek Krishna, vice President, Finance, Rapido, the Budget takes forward the agenda of Viksit Bharat. It would empower the gig economy, promote sustainable mobility, and catalyse digital innovation.

"We welcome the social security scheme and healthcare support announced for gig workers. The e-Shram portal registration and the PM Jan Arogya Yojana will be a game-changer in prioritising the well-being of gig workers, including our captains," Krishna said.

New and emerging technologies were a focus in the Union Budget as Finance Minister Nirmala Sitharaman announced a national framework for Global Capability Centres (GCCs), Rs 500-crore Centre of Excellence in AI for education, and a deep tech 'Fund of Funds' to catalyse the next generation startups.

Startups have a reason for cheer further as a new 'Fund of Funds' with expanded scope and a fresh contribution of additional Rs 10,000 crore will be set up.

The establishment of five National Centres of Excellence for Skilling will equip India's youth with industry-relevant skills, ensuring they are prepared for high-demand global opportunities, Pawan Gupta, CTO of SkillsCapital said.