Budget 2025: 'Intelligent' infra key to unlocking AI potential, say stakeholders

Union Finance Minister Nirmala Sitharaman will present Budget 2025-26 on February 1, expectations are high as the budget could set the tone for the Centre's vision for the next five years. Given the advancements in emerging technologies like AI over the past year, startups working in these areas expect the government to lay the groundwork for taking India's digital infrastructure to new heights. They say to fully harness the potential of AI and emerging technologies, the government should prioritise investments in building "intelligent data infrastructure". Here's a lowdown of the budget expectations from IT services, data infrastructure, and cloud computing companies.

The companies working on next-generation technologies expect the government to bolster the India AI Mission with dedicated funds and grants for AI startups. The upcoming Budget 2025-26 is a defining moment to position India as a global AI hub, says Niraj Kumar, CTO at IT Services and IT consulting company Onix. "With the recent discussions emphasising a national AI policy, including the formation of an AI committee by the Reserve Bank of India to develop a comprehensive framework, we see a clear commitment to enabling responsible and innovative AI adoption."

Stakeholders are looking forward to policies that align technology advancements with national priorities like sustainability, economic inclusivity, and job creation. "With rapid advancements in areas such as artificial intelligence, cloud computing, 5G, and cybersecurity, India is at the cusp of transforming its digital landscape. This Budget is set to play a pivotal role in accelerating the nation’s progress by prioritising investments in digital infrastructure, fostering R&D, and enhancing skill development, creating a strong foundation for technological innovation," says Sachin Panicker, Chief AI Officer, Fulcrum Digital.

Companies believe that by championing the 'Make in India for the Globe' vision, the Modi government can drive innovation, develop export-ready solutions, and establish India as a hub for emerging technologies and advanced software solutions. "With India's AI market projected to reach $25 billion by 2030, this budget can lay the groundwork for global influence and inclusive digital and AI transformation,” says Ishank Joshi, MD & CEO of Mumbai-based Mobavenue, an AI-powered growth marketing technology company.

Puneet Gupta, VP and MD of data infrastructure major NetApp India/SAARC, says as India moves closer to becoming a global technology hub, the upcoming Union Budget 2025-26 presents an opportunity to accelerate its digital transformation journey. "To fully harness the potential of AI and emerging technologies, the government should prioritise investments in building intelligent data infrastructure. Robust and scalable data solutions will serve as the backbone for AI readiness. Incentives for cloud adoption, data localisation frameworks, and public-private partnerships in technology can further bolster India’s digital economy. A future-ready data ecosystem is essential for fostering economic growth, job creation, and global competitiveness in the age of AI.”

Saurabh Bhardwaj, CEO, Verge Cloud, a Bengaluru-based software company, says he anticipate a strong emphasis on enhancing digital infrastructure and incentivising transformative technologies such as AI, edge computing, and cloud solutions—key drivers of scalability, security, and innovation. "These advancements will empower industries to achieve faster processing, better latency, and robust cybersecurity frameworks. Continued policy support for startups and innovation, alongside workforce skilling initiatives, will accelerate entrepreneurial growth and digital readiness."

Sunil Sharma, VP- Sales, Sophos India and SAARC, a software and hardware company, says with the recent introduction of the Digital Personal Data Protection (DPDP) Act rules, India has made significant strides in establishing a strong foundation for data protection and privacy. "We look forward to measures that will further strengthen the nation’s cybersecurity framework," Sharma says. With increased digital transformation and integration of AI, there's also a need for proactive cybersecurity measures. "Data breaches have taken over the news in the past year as critical sectors have been targeted. Adding to the threat of exploited vulnerabilities such as malicious links or confidential data being leaked, enterprises and employees alike have had to reconsider whether what meets the eye is the truth due to highly advanced deepfakes," says Sharma.

Shrirang Deshpande, Strategic Program Head, Vertiv Energy India says the adoption of technologies like artificial intelligence (Al), cloud computing, and 5G, as well as exponential data consumption, are driving India's booming digital economy. "We anticipate measures supporting the rise of data centres as the Union Budget draws near, such as incentives for integrating green energy, simplified regulations for expanding infrastructure as well as initiatives to improve connectivity in tier-2 and tier-3 cities, generating employment opportunities."