As India approaches its 2025 Union Budget, there is growing expectation that the government will prioritize key sectors that align with the nation’s vision of economic growth, national security, and technological innovation. Industry leaders from diverse sectors have shared their insights on what the upcoming budget should focus on, with particular emphasis on defence modernization, self-reliance in defence, and boosting India’s leadership in the global tech ecosystem.
Military Modernization and Defence Self-Reliance: A Strategic Focus
Capt. Nikunj Parashar, Founder of Sagar Defence Engineering Pvt. Ltd., stresses the need for increased investment in India’s defence sector. Reflecting on the government’s commitment to economic growth and reforms, he remarks, “As the Union Finance Minister Nirmala Sitharaman has highlighted, 2025 will be a pivotal year for significant policy measures aimed at driving India’s economic growth. We anticipate a key focus on enhancing military modernization and boosting Aatmanirbharta (self-reliance) in defence, a critical area for national security.”
As India continues to enhance its defence capabilities, Capt. Parashar envisions that the 2025 budget will play a crucial role in supporting technological advancements and fostering a robust defence manufacturing ecosystem. “There is anticipation for increased allocations for innovation and research to support advanced technologies. We look forward to the 2025 Budget aligning with the nation’s goals of strengthening its defence capabilities while fostering economic growth and innovation,” he adds.
Reforming India’s Tech and Defence Landscape:
Dr. Subba Rao Pavuluri, Chairman & Managing Director of Ananth Technologies, calls for a comprehensive focus on technology and defence. Highlighting India’s journey towards becoming a “Vishwaguru” (global leader), he states, “The budget should enable VIGYAN Bharat (Technology) to contribute and SURAKHIT Bharat (defence), as these two areas should receive enough funding for Bharat to become a VIKASIT Bharat.”
Dr. Pavuluri also advocates for clear policy frameworks around Make in India and Antyodaya, stressing the importance of last-mile connectivity through satellites. He further suggests that funding and government encouragement for satellite-based solutions should be prioritized to uplift underprivileged sections of society, especially in remote areas.
Strengthening India’s Drone Infrastructure and Indigenous Capabilities
With the rapid growth of the drone sector, particularly in security and defence applications, Kiran Raju, CEO & Co-Founder of Indrajaal, sees great potential for the government to invest in drone infrastructure as part of its 2025 Budget. Raju notes, “As India looks ahead to Budget 2025, the focus should be on modernizing the armed forces and strengthening drone infrastructure. The government needs to prioritize strengthening home-grown drone infrastructure to foster innovation and self-reliance.”
Raju believes that while many states have already started investing in drones, there is a pressing need for infrastructure to support the growing volume of drones in the country. A greater emphasis on Indigenous production, coupled with an increased focus on security, would play a pivotal role in India’s defence capabilities.
India’s Role in the Global Drone Ecosystem: Cybersecurity and Component Manufacturing
Sai Pattabiram, Founder & MD of Zuppa Geo Navigations Pvt. Ltd., brings attention to the global opportunity for India to become a dominant player in the drone industry. He asserts that “The demand for secure, non-Chinese drones is growing worldwide, and India has the opportunity to leverage its domestic consumption and global reputation as a technology partner.”
Pattabiram stresses the importance of India moving beyond the assembly of imported components to a deeper involvement in the drone component supply chain. “Drone cybersecurity is crucial, especially in light of recent global electronic warfare threats. The government should support companies involved in component manufacturing, cybersecurity, data security, and analysis for drones,” he adds. According to Pattabiram, a Design Linked Incentive (DLI) scheme, coupled with a Production Linked Incentive (PLI), would further boost the sector and promote domestic component manufacturing.
Fostering India’s Leadership in Web3 and Crypto
Nikhil Sethi, Founder & MD of Zuvomo, highlights the need for India to reclaim its position as a leader in the global tech ecosystem, particularly in the Web3 and cryptocurrency spaces. In his pre-budget statement, Sethi notes, “The Budget 2025 is a critical moment for India to reclaim its leadership in the global tech ecosystem. India ranks #1 in the number of crypto holders and #3 in tech unicorns globally, yet we have missed the Web3 revolution.”
Sethi emphasizes that unclear crypto regulations and a regressive tax regime have hindered innovation, pushing startups and talent overseas. “The government must provide clear compliance frameworks and a progressive approach to crypto regulation. A balanced taxation system and a supportive environment will ensure India remains at the forefront of global innovation,” he urges.
Shaping India’s Future through Strategic Investments
As the 2025 Union Budget approaches, industry leaders are hopeful that the government will take bold steps to strengthen India’s defence sector, promote technological innovation, and position the country as a global leader in emerging industries. The focus on military modernization, indigenous manufacturing, drone infrastructure, and Web3 innovation will be key in propelling India towards becoming a Vishwaguru.