The Union Budget charts a bold path toward India’s emergence as a global economic powerhouse, prioritising digital infrastructure, innovation, and sustainability as key drivers of growth. By prioritising technology, skilling, and inclusive development, the government has laid the foundation for a future aligned with India’s aspirations.
Digital infrastructure: The engine of growth
India’s digital infrastructure is the primary focus in this year’s budget. Investments in emerging technologies such as artificial intelligence (AI), machine learning (ML), and deep tech are set to accelerate transformation across sectors. The government’s dedication to establishing India as a global center for technological development is demonstrated by the creation of Centers of Excellence in AI and the funding of research and development (R&D).
Furthermore, the FM’s announcement of around 10,000 new fellowships for technological research in premier institutions like IITs and IISc is a commendable step. These initiatives will not only drive breakthroughs in AI, ML, and renewable energy but also create a talent pool capable of leading India’s tech revolution.
Skilling for a future-ready workforce
The budget’s focus on skilling initiatives, particularly the enhancement of Industrial Training Institutes (ITIs), is a significant step toward building a future-ready workforce. As industries evolve in the era of Industry 4.0, the demand for a skilled workforce equipped with cutting-edge knowledge and technical expertise is greater than ever.
The focus on upskilling and reskilling will ensure that India’s youth are prepared to meet the demands of a rapidly changing global economy. Moreover, the proposal to create 50,000 Atal Tinkering Labs over the next five years is another significant initiative. These labs will provide young minds with hands-on experience and the tools required to turn their innovative ideas into reality.
Start-ups and innovation
The budget’s support for start-ups and innovation is a game-changer for India’s entrepreneurial landscape. The launch of a new Fund of Funds with an expanded scope and a fresh contribution of R10,000 crore will provide much-needed financial support to start-ups, particularly in sectors like AI, clean tech, and renewable energy.
This will foster an atmosphere that is favourable for entrepreneurs to flourish, especially when combined with government initiatives to streamline laws and facilitate business transactions. Establishing a light-touch regulatory framework founded on values and trust will increase employment and productivity while facilitating corporate operations and innovation.
Ease of doing business
The tax reforms announced under the ease of doing business focus is again a welcome step. Pertaining to compliance aspects such as safe harbour rules, simplification of international transaction pricing, reduction on compliance related checklist for small trusts and extending time limit for updated IT Returns will enable the businesses to focus on their core proposition and thereby result into an overall positive sentiment across the corporate ecosystem.
Looking ahead
The Union Budget 2025-2026 is a testament to the government’s commitment to building a Viksit Bharat. By focusing on digital infrastructure, innovation, entrepreneurship, employment and skilling, and inclusive growth, this budget lays a strong foundation for future development. It addresses current challenges while preparing India for upcoming opportunities. As we move forward, effective implementation of these initiatives will be crucial in realising our vision for a prosperous, inclusive, and technologically advanced Bharat.
(The writer is Managing Director & Chief Financial Officer, Happiest Minds Technologies)