While the Union Budget 2025’s comprehensive focus emphasized supporting the growth of Indian MSMEs, larger industry stakeholders from diverse sectors immensely benefited from key announcements. For instance, announcements on Artificial Intelligence (AI), upskilling, employment generation, manufacturing, logistics, agriculture and the National Manufacturing Mission provided a blueprint for the GOI’s strategy to drive scalability and growth, positioning the country in a unique spot to sustain its growth potential for the upcoming fiscal year.
AI has been in all kinds of talks this year, so there was much expectation from the Union Budget to deliver in this area. Even more so after China’s DeepSeek came out. Finance minister Nirmala Sitharaman allocated INR2,000 crore for the IndiaAI mission,close to 20% of the scheme’s INR10,370 crore announced last year. The government has also selected 10 companies to supply nearly 19,000 GPUs to put up AI data centres and building foundational models.
The Tech Panda asked what industry players thought of the Union Budget 2025 allocation when it came to AI.
Sarvagya Mishra, Founder & Director, Superbot
“The growing emphasis on AI has been addressed well in the Union Government by inviting investments in AI for drug discovery. As India looks to advance its capabilities in AI, upskilling in relevant tech education will be imperative. The government’s decision to add broadband connections in government secondary schools to integrate digital learning, while also helping learners to understand the subjects better in their respective languages is commendable. Furthermore, the establishment of 5 national centres of excellence for upskilling to supplement Make for India and Make for the World will have long-term favourable implications on the future of millions of Indian talents, helping them to become critical contributors of the country’s bid to become a developed nation by 2047.
“The Union Budget 2025 announcement has touched upon pivotal aspects to push the next wave of growth in India. We particularly commend the announcement of the Centre of Excellence for AI In Education, to be established with an outlay of INR 500 CR. Furthermore, the move to set up the Deeptech Fund of Funds and establish 5 new IITs after 2015, is another significant move, directed at boosting innovation in the space of AI and Tech. We commend the budget for its forward-looking measures and look forward to contributing towards India’s emergence as a global leader in the space of AI, Tech, and Innovation.”
Varun Babbar, Managing Director, India, Qlik
“The Finance Minister’s announcement of a Centre of Excellence in AI for Education with an outlay of ?500 crore is a commendable step toward strengthening India’s AI ecosystem. Qlik’s recent AI survey highlights that 79% of AI decision-makers see India leading in AI skills within five years, yet challenges like talent shortages, governance complexities, and trust issues continue to slow AI adoption.
“This initiative can play a pivotal role in bridging the AI skills gap, equipping future professionals with industry-relevant expertise, and fostering innovation. Additionally, the expansion of Atal Tinkering Labs, five National Centres of Excellence for skilling, and the National Framework for GCCs in tier-2 cities will create new opportunities for high-skilled jobs and strengthen India’s digital economy.
“By focusing on upskilling, research, and responsible AI deployment, these initiatives will not only boost India’s global AI competitiveness but also empower businesses with skilled talent to accelerate AI-driven transformation. As India moves towards a $1 trillion digital economy, collaborative efforts between the government, businesses, and educational institutions will be crucial in building a future-ready workforce and ensuring AI drives meaningful transformation across industries.”
Peeyush Vaish, Partner & TMT Industry Leader, Deloitte India
“Establishment of Centre of Excellence for AI clearly reflects the aspiration of the new India to be on the forefront of technology. The Govt. continues to drive its make in India initiative with increased PLI for electronics at over USD 1 billion and revamping of custom duties on components. The increase in allocations for semiconductors is also in line with the focus on this industry. The smartphone industry, a big beneficiary of PLI schemes is a great success story with India being the third largest exporter of handsets with a 40% growth in just one year.”
Anjani Kumar, Partner, Deloitte India
“The investment in setting up AI CoE for education is a critical step towards government’s ongoing efforts in leveraging AI for societal development. This investment comes on the heels of the Rs 990 cr investment announced in Oct last year in establishing AI CoEs for agriculture, healthcare, and sustainability. The capacity building in these four key areas provides India an opportunity to unlock new possibilities to position itself as a global powerhouse in AI. With the demand for AI talent in India projected to exceed 1.25 million by 2027, the establishment of the AI CoE in education will play a pivotal role in bridging the talent gap. It will help in building skills of our youth to capitalize on the opportunities presented by AI rather than be disintermediated by it.
“India stands at the cusp of a significant opportunity to become a global leader in AI, and investment in AI Center of Excellence for Education is a crucial step towards this. With the demand for AI talent in India projected to exceed 1.25 million by 2027, the establishment of AI CoE in education will play a pivotal role in bridging the talent gap. These CoEs will serve as hubs for developing in-demand skills like machine learning, data science, and AI, unlocking new learning possibilities and enhancing the quality of digital skills, largely overcoming the fear of job displacements that have making waves according to the recent Economic Survey. The investment in AI for education is a critical step towards government’s ongoing efforts in strengthening agriculture, healthcare, and sustainability. Addressing these four critical areas will unlock new possibilities for India to position as a global powerhouse in the AI sector.”
Rishi Das, Executive Director & CEO, IndiQube
“The Union Budget brings a host of positives for the Indian startup ecosystem. The new Fund of Funds, with an additional ?10,000 crore contribution, is a significant boost, ensuring greater access to capital, fostering innovation, and enabling startups to scale faster. The proposed DeepTech Fund of Funds is also a positive change, set to catalyze the next generation of startups in cutting-edge technology domains. Additionally, the strong focus on skill development—through infrastructure expansion in IITs, the establishment of a Centre of Excellence for AI, and the addition of 10,000 medical college seats—will help build a robust talent pipeline to meet the evolving needs of the industry. This forward-looking approach will further strengthen India’s position as a global hub for innovation and entrepreneurship.”
Sourabh Jalan, Chief Financial Officer, Xoriant
“The Union Budget sets a bold vision for Viksit Bharat, fostering an ecosystem where innovation thrives, capital flows seamlessly, and businesses—smart-sized like ours—scale with agility. The establishment of five National Centers of Excellence for skilling, coupled with a INR20,000 crore innovation push—including a Deep Tech Fund and INR500 crore for AI CoEs in Education—strengthens India’s position as a leader in AI and emerging technologies. The focus on Global Capability Centres (GCCs) in Tier-II cities is a pivotal move in India’s journey to becoming a strategic hub for digital engineering.
Sridhar Parthasarathy, Co-Founder & General Partner, Bluehill.VC
“The government’s announcement of a another Fund of Funds (FoF) worth INR10,000 crore in the budget is strong commitment to cultivate an entrepreneurial ecosystem and an acknowledgement of Alternative Investment Funds (AIFs) in channeling these resources effectively. Additionally, the plan for a new Deep Tech Fund of Funds is a crucial step towards advancing deep tech innovation in India. This signals a clear intent from the govt to position India strongly in the global AI race, which is much needed boost for deep tech startups specially in AI and space tech.”
Pankit Desai, Co-founder & CEO, sequretek
“With the unveiling of the Union Budget 2025, significant advancements in artificial intelligence come into focus, particularly with the creation of National Centers of Excellence (COEs) in AI. This shift signals a groundbreaking transition from AI being a mere boardroom discussion to becoming a central budgetary focus, complete with serious financial commitments. By earmarking funds specifically for deep tech, the government is actively fostering an environment ripe for innovation, acknowledging the high-risk nature of such investments, and putting resources right where they’re most needed. This policy shift could elevate India’s skilled tech workforce, facilitated by increased funding and programs such as “Train the Trainers,” ensuring capable instructors for burgeoning student populations. The expansion of broadband access further ensures that students even in remote areas can emerge technologically proficient, broadening the talent pool to Tier 3 and 4 cities and rural India.”
Sunil Chemmankotil, Country Manager, Adecco India
“Budget 2025 emphasizes significant investments in artificial intelligence (AI), focusing on job creation and upskilling initiatives. By allocating resources to AI education and training programs, the government is equipping the workforce with essential skills to navigate an increasingly digital economy. This forward-looking approach will not only prepare talent for evolving job demands but also drive innovation and global competitiveness.”
Sajeev Nair, Founder and Chairman, Vieroots
“The government’s focus on expanding healthcare infrastructure and improving nutrition is a positive step for India’s well-being, and it’s exciting to see how these developments align with Vieroots’ mission of promoting personalized wellness. The creation of a Centre of Excellence in Artificial Intelligence for health is another promising development. We’ve long believed in the transformative power of AI to revolutionize healthcare, especially when it comes to delivering personalized nutrition and wellness solutions. These advancements in AI will enhance our ability to offer data-driven insights that empower individuals to take charge of their health.”
Bodhisattwa Sanghapriya, Founder & CEO, IG Drones
“The Union Budget 2025-26 delivers a significant boost to deep-tech innovation, AI, and indigenous manufacturing, reinforcing the government’s vision for Atmanirbhar Bharat and Make in India. The ?20,000 crore allocation for private sector-driven R&D and the Deep Tech Fund of Funds will accelerate advancements in AI-powered drone technology, enhancing applications in surveillance, infrastructure, disaster management, and precision agriculture.”
