The Union Budget 2025 outlines various initiatives aimed at enhancing India’s digital, technological, and healthcare sectors, with a focus on AI-driven growth, innovation, and sustainability. Industry leaders have provided their perspectives on how these measures could influence the country’s development, from fostering digital infrastructure to addressing workforce gaps in healthcare and advancing energy security.
Digital Expansion and AI-led Innovation
Industry leaders recognize the government’s commitment to bolstering India’s digital ecosystem. The budget’s emphasis on AI-driven growth and digital connectivity aligns with India’s trajectory as a key player in the global tech space.
Manoj Paul, Managing Director, India, Equinix, lauded the government’s initiatives under the Digital India program, highlighting the impact of cloud-based AI services and AI skilling centers:
“India has emerged as a critical hub for digital interconnection and data creation and exchange, not only within South Asia but also on the global stage. With the government’s ambitious initiatives under the Digital India program like Empanelment of Agencies for Cloud-Based AI Services to democratize access to essential AI infrastructure and ensure global competitiveness through innovation and the recently unveiled priorities in the budget, such as National Centers of Excellence for skilling in AI for education in the Union Budget 2025. This initiative will contribute to the development of innovative, automated, and scalable digital technologies to improve digital infrastructure resilience. Equinix is proud to play a pivotal role as the digital backbone enabling India’s transformation into a global digital leader.”
He also noted the growing digital economy in India, emphasizing Equinix’s role in supporting enterprise expansion:
“As one of the fastest-growing digital economies, India is home to a burgeoning internet user base of over 900 million with rapid adoption of digital services and an expanding network of enterprises embracing cloud and digital-first strategies. Our continued commitment to investing in state-of-the-art data center infrastructure across key markets like Mumbai, Chennai, and beyond, with interconnection services for efficient hybrid multi-cloud adoption and easy deployment of infrastructure in over 73 metros worldwide enabling Indian enterprises to reach markets beyond India and MNCs to expand into India, positions Equinix to support the nation’s vision of creating a robust and interconnected digital ecosystem.”
Support for Research, Startups, and Digital Inclusion
Shouvik Mazumdar, Senior Director, Front-end Engineering, Ascendion, praised the government’s proactive measures in fostering innovation and digital inclusion. The allocation of Rs 20,000 crore for private sector-led research and AI development underscores the government’s commitment to technological advancement:
“The Union Budget 2025 shows a proactive approach by the Government in positioning India as a global leader in technology, innovation, and economic growth. The Budget reform to allocate Rs 20,000 crore to fuel private sector-led research and innovation, shows significant focus on AI, digital infrastructure, and R&D to drive progress in sectors like health, agriculture, and IT. The creation of Centres of Excellence for cutting-edge technologies, particularly AI, will foster stronger partnerships with academic institutions, develop new skills, and ensure India has a future-ready workforce that can meet the global demands of the dynamic tech sector.”
He also pointed out the benefits of regulatory reforms and improved broadband connectivity:
“Major schemes like enhancement in credit guarantee covers for various sectors and investment in the BharatTradeNet system for international trade will help support startups and micro enterprises to enable the development of new technologies and services. Investments in Atal Tinkering Labs and digital literacy programs will equip India’s youth with the skills required for a technology-focused economy. Additionally, regulatory reforms, such as revamping the KYC process and increasing FDI limits in the insurance sector, will help streamline operations for tech businesses. Moreover, enhanced broadband and rural connectivity investments will help expand the growth of India’s digital economy through increased inclusivity across regions. These initiatives showcase the Government’s holistic approach towards transforming India’s technological ecosystem, which supports innovation and prepares the nation to lead in the global tech landscape.”
Transformative Steps in Healthcare and Medical Innovation
The budget’s strong focus on healthcare reforms has been met with enthusiasm, particularly with measures aimed at addressing the medical workforce gap and improving accessibility to quality healthcare.
Satish Kannan, Co-founder & CEO of MediBuddy, highlighted the key healthcare initiatives that would redefine the sector:
“The Union Budget 2025-26 presents a transformative vision for India’s healthcare ecosystem. From a healthcare perspective, the addition of 10,000 seats in medical colleges next year and the ambitious goal of 75,000 seats in the next five years show serious intent to bridge our medical workforce gap. Furthermore, the healthcare coverage for gig workers under PM Jan Arogya Yojana will make quality medical treatment more affordable. The customs duty exemption on 36 life-saving drugs will significantly improve treatment affordability.”
He also acknowledged the impact of insurance reforms and AI integration in healthcare:
“On the insurance front, the bold move to allow 100% FDI in insurance, with simplified foreign investment conditions, will drive innovation in health coverage models and enhance accessibility. At MediBuddy, we are particularly optimistic about the doubled Fund of Funds commitment to Rs 20,000 crores and the extension of startup benefits until 2030. The integration of AI in healthcare through dedicated Centres of Excellence, coupled with the focus on medical tourism through private sector partnerships, positions India strongly on the global healthcare map. These interconnected reforms will accelerate our vision of making high-quality healthcare accessible.”
Reforms in Personal Finance
A crucial aspect of the budget is its emphasis on energy security and sustainability, which has garnered support from digital infrastructure leaders.
Akshay Sarma, Chief Financial Officer, axio commented on financial reforms introduced.
“Extending incorporation benefits for startups until 2030 provides long-term stability and incentivizes innovation, contributing to sustained economic growth. On the personal finance front, the revised tax slabs, with nil tax up to Rs 12 lakh, will enhance disposable income and savings for salaried individuals, boosting financial management and investment opportunities.
The proposed rationalization of TDS and TCS will simplify compliance, reduce tax-related complexities, and improve cash flow for businesses and individuals. We look forward to the New Income Tax Bill, expecting a simplified tax framework that will enable greater wealth generation, stimulating economic development.” The Union Budget 2025 introduces a range of measures across multiple sectors with the aim of driving growth and innovation. While the potential for significant change is recognized, the actual impact will depend on the implementation and collaboration between government and industry stakeholders. These initiatives have the potential to shape India’s future in technology, healthcare, and energy, but their success will rely on effective execution and alignment with evolving market needs.