NEW DELHI: With the Union Budget 2025 on the horizon, industry leaders from infrastructure, SaaS, AI, healthcare, and fintech sectors highlight key expectations, urging increased infrastructure spending, regulatory simplifications, AI-driven public services, healthcare reforms, and taxation ease. Calls for sustainability-focused investments, talent development, and digital economy growth dominate the wishlist, aiming to bolster India’s journey toward becoming a $7 trillion economy.YR Nagaraja, Managing Director of Ramky Infrastructure: In the last Union Budget, the government allocated Rs 11.1 lakh crore towards infrastructure development, significantly driving growth in the sector. To build on this momentum, we expect a further 30% increase in infrastructure spending to Rs 18 lakh crore in the upcoming budget. This boost would be pivotal in moving closer to the World Bank‘s projection of requiring $840 billion—approximately $55 billion annually—over the next 15 years to meet the demands of India’s rapidly expanding urban population.
The previous budget placed a commendable emphasis on sustainable urban development, with significant initiatives such as sewage waste management and treatment projects in over 100 cities. We urge the government to continue focusing on the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which plays a critical role in improving the quality of life for the underprivileged by providing essential civic amenities like water supply, sewerage, and urban transport. The Rs 8,000 crore outlay in the last budget was a step in the right direction, and we hope to see enhanced allocations this year.
Additionally, partnerships that drive sustainable infrastructure projects must be explored, along with incentives for the use of eco-friendly construction materials such as steel slag and recycled plastic waste for road development. Building on previous initiatives like the Rs 1.5 lakh crore interest-free loans to states for infrastructure expansion and the Phase IV launch of PMGSY to provide all-weather connectivity to 25,000 rural habitations.
We also propose the introduction of a sustainability rating framework to assess infrastructure projects on their long-term environmental impact and viability. Such a rating system would not only ensure sustainable development but also highlight areas of improvement for project optimization. A continued focus on holistic urban development schemes and the Smart Cities Mission will be crucial in shaping India’s infrastructural landscape for a sustainable and inclusive future.
Khadim Batti, Co-founder & CEO, Whatfix: India’s SaaS industry, powered by a solid and vibrant startup ecosystem, continues to drive the nation’s digital transformation and global technology leadership. With the Union Budget 2025 on the horizon, the sector anticipates forward-thinking measures that build upon the progressive policies introduced last year.
Regulatory and Taxation Policy Enhancements: The abolition of the angel tax in 2024 was a landmark reform, offering much-needed relief to startups during a funding winter. For 2025, further steps to simplify FDI and overseas investment rules can accelerate the flow of international capital. Enhanced frameworks that streamline transfer pricing and ease compliance for startups will foster a more business-friendly environment. Additionally, aligning Long-Term Capital Gains (LTCG) tax treatment for unlisted entities with public companies remains a critical step to incentivize investments.
Leveraging the Digital Infrastructure and Rupee Globalization: The 2024 focus on promoting the Indian rupee for global transactions was a welcome move. Continued investment in high-speed internet, state-of-the-art data centers, and initiatives supporting India’s digital currency push will be instrumental in ensuring seamless SaaS operations and reducing transaction costs. Strengthening India’s digital backbone is vital to unlocking new opportunities and driving innovation.
Scaling Emerging Technologies: To position India as a global SaaS hub, the 2025 budget should prioritize scaling investments in AI, IoT, and other frontier technologies. Incentives for businesses to adopt these tools will enhance productivity, competitiveness, and global market penetration. Allocating larger budgets for R&D and innovation in technology will further solidify India’s standing as a leader in the global digital economy. The government should also focus on fostering partnerships between public institutions and startups for the R&D of core technologies. Setting aside a dedicated budget for such collaborations will not only spur grassroots innovation but also ensure that India becomes a key driver of cutting-edge advancements in the global digital economy.
Expanding Talent Development Initiatives: The 2024 budget’s announcement to skill 20 lakh youth and upgrade 1,000 training institutes was a pivotal step. For 2025, the focus should shift to scaling these programs and ensuring they are aligned with emerging industry needs. Initiatives like Skill India Digital and deeper industry-academia collaborations will empower India’s workforce with future-ready skills, addressing the global tech talent gap.
India’s SaaS sector is well on its way to contributing $100 billion to the economy by 2030. By continuing to invest in regulatory simplifications, cutting-edge technologies, and talent development, the Union Budget 2025 can act as a catalyst for the next phase of growth. I firmly believe that India’s potential to lead the global digital economy is within reach. By building on the progress made in 2024, the government can accelerate the country’s journey toward becoming a $7 trillion economy by 2030. A robust digital ecosystem, streamlined regulations, and strategic investments will enable the SaaS industry to thrive, driving innovation, job creation, and economic growth.”
Muneeswara Pandian C., Vice President, Data & Analytics, Ascendion: The year 2024 has been pivotal for AI, marked by the rise of AI Agents—autonomous systems capable of handling simple to complex multi-step tasks. Indian government services can gain immensely by adopting an agentic model within their workforce. This approach would enable quicker, high-quality, and transparent services, revolutionizing citizen engagement. India has an opportunity to leapfrog into this Agentic era, much like the mobile telecom revolution, bypassing legacy cleanups.
IndiaAI Mission: IndiaAI’s mission pillars can significantly accelerate the adoption of AI Agents across government services, healthcare, and education sectors. The availability of IndiaAI datasets, coupled with robust data protection laws and AI regulation, will be critical for contextualizing these models for India’s diverse socio-economic landscape.
Semiconductor Manufacturing and AI: In 2024, India made significant progress with multiple semiconductor manufacturing agreements. This marks a crucial step toward self-sufficiency in chip production, a cornerstone for advancing AI technologies. Increased R&D investments in semiconductor technology are essential to meet domestic demand and fuel AI innovation.
A substantial focus on IndiaAI mission with new industry-specific pillars.
Implementation of AI programs across multiple sectors like agriculture, legal services, tourism, public distribution systems, delivering tangible impactful outcomes for the citizens.
Emphasis on a Public-Private Partnership (PPP) model to drive AI adoption at scale, leveraging public resources and private expertise for efficient execution.
Satish Kannan, Co-founder & CEO, MediBuddy: As India approaches Budget 2025, it is crucial to prioritise reforms that address key gaps in our healthcare and insurance sectors. At MediBuddy, we strongly believe that mandating a dedicated allocation of CSR funds for primary and preventive healthcare will make our system more cohesive and transformative, complementing programs like Ayushman Bharat.
To support this, we advocate for a dedicated budget to upskill healthcare workers through specialised programs within existing skill development and internship initiatives. This will equip the workforce to deliver high-quality healthcare nationwide. Additionally, we propose performance-linked incentives (PLI) for healthtech platforms focused on digital health, AI-powered solutions, and remote diagnostics. These incentives will drive innovation and expand access, particularly in Tier 2 and 3 cities.
India has a unique opportunity to strengthen its healthcare infrastructure, especially for the ‘missing middle’—over 400 million uninsured Indians. Expanding insurance front, OPD and wellness coverage, especially for public and government sector employees, will be key. Introducing tax incentives for wellness-linked benefits will encourage preventive healthcare practices and reduce the overall burden on the system. Supporting health-linked savings products, modeled after the National Pension System, will also empower individuals to invest in their long-term health.
Collectively, these reforms will strengthen the healthcare sector, drive sustainable growth, and improve health outcomes for all Indians.
Akshay Sarma, Chief Financial Officer, axio: The Indian government’s continuous tax reforms in previous budgets have helped to create a business-friendly environment. We expect that Union Budget 2025 will add momentum to these reforms by simplifying withholding tax rates, including TDS across all categories. Measures like uniform TDS rates for goods, services, and digital transactions can avoid litigation. Additionally, easing compliance for international taxation by giving relaxation in the time frame for submission of Tax Residency Certificates with amendment in Form 10F will empower the businesses to leverage cross-border operations. This would be especially useful, as overseas tax authorities don’t issue TRCs that testify to future tax residency. These reforms would help smoothen out the taxation process and further showcase the Indian economy as progressive and business-friendly.
Varun Babbar, Managing Director – India, Qlik: As India advances toward its vision of ‘Viksit Bharat’ under Prime Minister Modi’s leadership, AI’s role in driving transformative change across industries is crucial. The upcoming Union Budget presents a unique opportunity to prioritize investments in AI research, skill development, and digital infrastructure. These initiatives will empower businesses to innovate and position India as a global leader in AI-driven economic growth.
Rajnish Gupta, Managing Director & Country Manager, Tenable India: A larger budgetary allocation is needed to fund comprehensive awareness campaigns, training initiatives, and upskilling programs. Partnerships with leading educational institutions can help develop specialized curricula that prepare talent for an AI-driven future. Additionally, government funding could incentivize the private sector to invest in robust skill development programs, attracting more talent to the industry and creating a resilient talent pipeline.
