Budget2025: What's In It For Tech And AI?

In a significant push to position India as a global leader in technology and artificial intelligence (AI),the Union Budget 2025 has introduced a series of groundbreaking initiatives aimed at fostering innovation, enhancing manufacturing capabilities, and building a future-ready workforce. These measures are expected to accelerate the country’s digital transformation and strengthen its position in the global tech landscape.

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 1.AI Centers of Excellence to Revolutionise Education:The government has announced the establishment of a Centre of Excellence (CoE) for AI in Education,backed by an allocation of **₹500 crore.This initiative seeks to integrate AI into the educational ecosystem, transforming learning experiences and equipping students with the skills needed for the jobs of tomorrow. By leveraging AI, the CoE aims to personalize education, improve accessibility, and foster innovation in teaching methodologies. This move is expected to create a pipeline of skilled professionals ready to tackle the challenges of a rapidly evolving digital economy.

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2.₹20,000-Crore Deep-Tech Fund of Funds to Fuel Innovation:In a bid to support startups working on cutting-edge technologies, the government has introduced a ₹20,000-crore deep-tech Fund of Funds.This fund will provide crucial financial backing to startups engaged in advanced research and innovation in areas such as AI, robotics, blockchain, and other emerging technologies. By addressing the funding gap in the deep-tech sector, the initiative aims to nurture homegrown innovation and position India as a hub for technological breakthroughs.

3.National Manufacturing Mission to StrengthenTechManufacturing
The budget has unveiled a National Manufacturing Mission aimed at boosting India’s manufacturing capabilities, particularly in the technology sector. The mission is designed to attract investments, enhance efficiency, and improve the global competitiveness of Indian companies. By focusing on high-tech manufacturing, the government aims to reduce dependency on imports and establish India as a key player in the global supply chain for tech products.

4.Push for Electronics Manufacturing withCustomDutyRevisions:To promote domestic production of electronic components, the government has increased the basic customs duty on flat panel displays to 20% while exempting  open cells used in displays from import duty. These measures are expected to incentivize local manufacturing, reduce costs for domestic producers, and encourage the growth of the electronics manufacturing ecosystem in India. This move aligns with the government’s broader vision of making India a self-reliant manufacturing powerhouse.

5.SkillingInitiativestoBuild a Future-ReadyWorkforce:Recognising the need for a skilled workforce to drive technological advancements, the budget has proposed the establishment of five National Centres of Excellence for Skilling.These centers will focus on providing training in high-demand areas such as Industry 4.0, Internet of Things (IoT),and advanced manufacturing.By equipping workers with the necessary skills to thrive in a technology-driven environment, the initiative aims to bridge the skill gap and ensure that India’s workforce remains competitive on the global stage.

A Vision for a Tech-Driven Future:The initiatives outlined in the Union Budget 2025 reflect the government’s commitment to harnessing the potential of technology and AI to drive economic growth and innovation. By investing in education, research, manufacturing, and skilling, India is laying the foundation for a sustainable and inclusive digital future. These measures are expected to not only boost the domestic tech ecosystem but also position India as a global leader in the Fourth Industrial Revolution.

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