What Indian Electronics Industry Expect from the Union Budget 2025?

The Finance Minister Smt. Nirmala Sitharaman is set to be tabled Union Budget 2025 at the Lok Sabha on the 1^st of February, 2025. As several sectors gear up with their anticipations, the Indian electronics industry already has a comprehensive wishlist focusing on boosting innovation, competitiveness, and exports.

India’s electronics industry is eyeing significant reforms in the upcoming Union Budget to address challenges like high tariffs, regulatory hurdles, and tax compliance. They propose a simplified tariff structure, tax reductions, and financial support to boost manufacturing. The industry aims for enhanced global visibility and substantial growth, targeting $500 billion in output by 2030.

Information Technology (IT) and Electronics industry players, just ahead of the Union Budget 2025-26, have demanded incentives for Make in India initiatives, investments in semiconductor manufacturing, funding for artificial intelligence research and developments, tax relief for tech startups, infrastructure development, skill development programs, and support for digital infrastructure, among others.

The electronics industry has called for the following in the 2025 budget:

• R&D tax cuts: To boost competitiveness and export potential. 
• Extended support schemes: To help achieve the vision of making India a global electronics hub. 
• Increased funding for cutting-edge technologies: To support innovation and adoption. 
• Simplified tariff structure: To reduce the cost of the final product. 
• Robust cybersecurity measures: To safeguard critical systems. 
• 5G infrastructure: To enable innovation and unlock opportunities across sectors. 
• Patent Box tax: To help achieve the vision of making India a global electronics hub. 

Here are the key quotes from the Leading Industry experts for the upcoming Union Budget 2025.

1. Mr. Kapal Suresh Pansari, Managing Director of RP Tech

“Incentives for Make in India initiatives and investments in infrastructure could significantly enhance the ICT (Information and Communications Technology) supply chain. Additionally, policies fostering innovation and skill development will be key to strengthening India’s position as a global technology leader,” 

2. Mr. Hareesh Chandrasekar, CEO and Co-Founder of AGNIT Semiconductors

, “Measures like lower GST on indigenously manufactured components, reduced import duties on semiconductor-grade inputs, and zero to low-interest funding for domestic companies can catalyse growth for home-grown semiconductor manufacturers.”

Additionally, he advocates for government-promoted Venture Capital funds and incentives to bring back NRI engineers working at global semiconductor giants to address talent gaps.

Similarly, the IT sector’s future is heavily dependent on AI, and Narinder Kumar, CEO of TO THE NEW, said, “We hope to see significant funding allocations for generative AI research and development, as well as the establishment of a regulatory sandbox to facilitate experimentation and advancement in AI.”

3. Mr. Ashok Chandak, President of IESA (India Electronics and Semiconductor Association)

Impact of Export Controls on AI Diffusion Under the Biden Administration

The Export Control Framework for Artificial Intelligence (AI) diffusion, introduced by the Biden administration, is expected to significantly affect global AI development and deployment. These restrictions extend beyond U.S.-based companies, influencing nations like India, which now faces licensing requirements for importing advanced AI chips.

Advanced AI Chip Control will be Tiered Access System (see image below )

1. Closest US Allies and Partners (18 countries):

1. Unlimited chip access with robust export controls
2. No restrictions for verified companies
3. Other Countries (non-embargoed):

2. New licensing pathways for chip production/development
3. Low-volume exemption up to 1700 GPUs (~$40-50M)
4. License review for larger orders up to $1B worth of chips
5. Embargoed Countries :  Restricted.
6. Countries can move between tiers based on strategic relationships and export control commitments.

Data Center Validation Programs

1. Universal Validated End User (UVEU):

1. Available to US companies
2. Single authorization for global data centers (except embargoed countries)
3. Must follow standards like FedRAMP and NSA guidance
4. Geographic requirements:

1. Minimum 50% of chips in US
2. Minimum 75% in US and close allies
3. Maximum 7% in any single other country
4. National Validated End User (NVEU):

2. Available to companies outside US allies/partners
3. Progressive chip allocation limits expected :
   1. 2025: <100,000 units of H-100-equivalent GPUs
   2. 2026: 270,000 units
   3. 2027: 320,000 units

Potential Challenges for India

India’s AI sector could face several hurdles due to these restrictions:

1. Impediments to AI Development: Restricted access to advanced AI chips may slow innovation and development and SCALING UP of installations.
2. Increased Procurement Costs: Licensing requirements could raise costs and introduce delays due to authorisations.
3. Dependence on Global Companies: Indian companies may rely heavily on global corporations for AI infrastructure, such as data centers.
4. Short term : impact is expected to be minimal.

Large-scale AI data centers, requiring several hundred thousand GPUs, may be delayed or scaled down, putting global companies at a competitive advantage over Indian enterprises. However, small-scale setups could still enable experimentation, innovation, and restricted model development.

Licensing and Authorization Outlook

India could potentially secure General National Validated End User (NVEU) authorizations due to its status as neither a re-exporter of Compute ICs nor an advanced compute manufacturing hub. This distinction, combined with the presence of significant Indian design centers for GPU makers like NVIDIA and AMD and their management commitment of support to India, could position India favorably for license approvals.

Expected NVEU Restrictions:

• 2025: <100,000 units of H-100-equivalent GPUs
• 2026: 270,000 units
• 2027: 320,000 units

The small qty of less than 1700 units of H-100 eq per company per year would have License exception.

Impact on Global AI Providers

U.S.-based providers like Amazon, Microsoft, Meta, etc  are expected to receive global authorizations but will be limited to deploying only 50% of their AI computing power outside the U.S.

Implications for India’s AI Ambitions

India’s National AI Mission aims to develop infrastructure with over 10,000 GPUs through public-private partnerships, supported by a ₹10,000 crore investment over five years. In the short term, the new export controls may not significantly impact India. However, the uncertainty of securing licenses and trade negotiations could challenge India’s ambitions for large-scale AI hardware deployment.

Administrative Challenges

The licensing process entails stringent conditions for Validated End Users (VEUs), including:

• Continuous monitoring and due diligence
• Adherence to export restrictions and acceptable use policies
• Maintenance of records for ten years Failure to meet these conditions requires notification to the Bureau of Industry and Security (BIS).

New rules aim to streamline licensing for verified users while maintaining security

Looking Ahead

The export controls are set to take effect in 120 days, allowing the incoming administration under President-elect Trump to potentially amend these rules. Thus it is bit uncertain whether Mr. Trump administration will make it easy or pass the rule as is.  Amid growing concerns from technology industries, the global AI landscape may witness a shift, impacting both U.S. technological leadership and India’s growth trajectory in AI infrastructure. Though , In short term India may not have major impact but in long run scaling up by any Indian conglomerate could face the hurdles of quantity cap.

4. Mr. Pankaj Panjwani, CEO and Founder, KeenSemi

As we approach the Union Budget 2025, the semiconductor and technology sectors stand at a critical juncture. To propel India towards becoming a global semiconductor hub, it is essential for the budget to introduce comprehensive measures that strengthen the entire value chain—from design and R&D to manufacturing and talent development.

India’s National Supercomputing Mission (NSM) requires additional impetus, including increased funding for the homegrown development of high-performance computing semiconductor chip architecture, design, and ecosystem. In 2015, ₹4,500 crore was allocated to NSM for seven years. This year’s budget is expected to allocate over ₹5,000 crore for the next five years to drive HPC and GPU development in India.

Schemes such as the Design-Linked Incentive (DLI) must be made more attractive by integrating larger imperatives for startups and companies developing designs tailored to indigenous needs and customers.

Enhanced incentives for domestic chip production, along with robust support for advanced research in AI, IoT, microcontrollers, and high-performance computing, will be crucial for achieving this vision.

Investments in digital infrastructure, particularly in the expansion of 5G networks and the establishment of robust data centers, are vital to meet the growing demand for connected devices and services. Additionally, fostering industry-academia collaborations can help bridge the skills gap and ensure a workforce proficient in cutting-edge technologies.

We remain optimistic that the forthcoming budget will establish a strong foundation for sustainable growth, innovation, and self-reliance in India’s semiconductor and technology landscape.

5. Mr. Ajit Manocha, President & CEO, SEMI.

As the global apex body representing the semiconductor and electronics design and manufacturing supply chain, here are SEMI’s expectations for the budget 2025:

India is currently at the cusp of becoming a major global semiconductor hub. As we anticipate the 2025 Union Budget, I must say that it is also going to be a key inflection point for the industry at large. To take a significant step forward, it is imperative for India’s semiconductor value chain to: Make strategic investments in domestic manufacturing capabilities, expand R&D funding, and drive sustainable innovation across.

India must also develop a resilient supply chain as well as a skilled workforce. It is very crucial for the industry, and to make this happen, there must be collaborations with premier universities and institutions like IITs and NITs to create specialized curricula tailored to semiconductor technologies. This will address the industry’s rising demand for talent.

Taiwan is the current leader in global semiconductor manufacturing with over a 50% share, followed by South Korea, and we are seeing multiple governments investing to grow their share. For India to be a competitive player, it is key that the country implements some optimized duty structures for importing critical components that are needed in the semiconductor industry. India must also propose some export incentives that can strengthen global market competitiveness.

It is important to maintain a long-term perspective in policies to build India’s semiconductor ecosystem. This is a marathon, not a sprint. The government will need to demonstrate sustained commitment until the emerging semiconductor ecosystem is robust enough to stand on its own, particularly to attract investment from major multinational corporations. I believe that with the alignment of the fiscal policies, duty frameworks, and the much-needed skilling initiatives, India can establish itself as a foundation of the global semiconductor ecosystem. This will drive both innovation and economic growth.

6. Mr. Ashok Rajpal -Managing Director – Ambrane India

“As we approach Union Budget 2025, we are optimistic about continued government focus on electronics and semiconductor sectors. Previous budgets have shown strong commitment to semiconductor development through increased funding for the Ministry of Electronics and Information Technology (MeitY), highlighting India’s push for self-reliance and global competitiveness. The mobile accessory manufacturing sector, heavily reliant on semiconductors, stands to benefit greatly from enhanced domestic production. By reducing dependency on imports, a robust semiconductor ecosystem can streamline supply chains, lower costs, and foster innovation in products like power banks, chargers, and cables.

We anticipate that the upcoming budget will strengthen initiatives like the Production Linked Incentive (PLI) scheme and skill development programs. These steps will accelerate India’s technological evolution, generate employment, and boost exports, propelling the country closer to its goal of becoming a global electronics manufacturing hub. India is poised for an electronics revolution, and the government’s efforts to equip the workforce with advanced skills and promote domestic production are critical. At Ambrane, we are ready to align with India’s vision, leveraging these developments to innovate, grow, and contribute to the nation’s self-reliant future”.

 7. Mayank Maggon, Founder, CEO and CTO, Techchefz Digital

“The upcoming Union Budget will introduce measures to support the growth of IT service SMEs. Implementing single-window clearances to streamline regulatory processes would simplify compliance, enabling SMEs to focus on innovation and service delivery.”

As India continues to position itself as a global leader in AI, several leaders are looking to the Union Budget for concrete steps to foster AI innovation.

8. A S Rajgopal, CEO and Managing Director of NxtGen

 further stresses the importance of AI in driving growth across sectors, with a specific budget provision for AI implementation in government ministries.

“I expect the government to create a specific budget provision for the use of AI in all the ministries so that GoI continues on the path of setting an example for the industry to follow,” he added. (ANI)

9. Mr. Srinivasa Addepalli, Founder and CEO, GlobalGyan Leadership Academy

 “As we look toward the Union Budget 2025, it’s important that we focus on skilling, upskilling, and leadership development to prepare our workforce for the future.  The emphasis of education is only on 15-20 years of school and college. The next 30-40 years are equally important for learning. Professional upskilling should be treated on par with education.  By investing in programs that provide individuals with the skills they need, we can help them stay relevant in a fast-changing job market.”

10. Mr. Imran Kagalwala, Co Founder at UNIX India

“As we approach the Union Budget 2025, local MSME in the electronics manufacturing sector are hopeful for policies that create a level playing field, enabling them to compete with the foreign brands. The Budget should focus on labour-skilling initiatives to address the talent gap in the manufacturing and technology sectors. It should also prioritize boosting R&D and innovation through targeted incentives, especially for businesses not benefiting from PLI schemes. Policies promoting production incentives will foster growth and enhance the global competitiveness of Indian businesses.”

11. Archana Jahagirdar, Founder & Managing Partner, Rukam Capital 

“In the last 10-12 years, the government has actively collaborated with the startup ecosystem and introduced new schemes and policy changes, such as the abolition of the angel tax in the previous budget. We expect this support to continue in the future as well. In the upcoming budget, we have two key requests for the government. Firstly, employees who join early and take risks should be rewarded, not taxed when the ESOP is exercised, as opposed to when there is a sale of those equities. It would be fairer to tax ESOPs only when the shares are sold, aligning the tax obligation with the employee’s financial ability to pay. Secondly, there is an urgent need for a sovereign fund, similar to those maintained by several governments around the world. In a milestone move, the government announced a Rs. 1000 cr VC fund for space startups in the previous budget. Similarly, we need to unlock more capital through various pools within the government. Though India now has a fair amount of domestic capital available, the government must look for ways to unlock institutional capital and be available for startups. Institutionalizing risk capital, which can then flow through VC funds to startups, is crucial for the overall growth of the Indian economy and the startup ecosystem.”

12. Ms. Joyshree Das Verma, National President, FICCI FLO 

“With women comprising nearly 48% of India’s population yet contributing only about 18% to the GDP, the Union Budget 2025-26 presents a critical opportunity to bridge this gap. At FICCI FLO, we’re hoping for targeted measures like incentives for women-led businesses, easier access to credit, and programs to enhance digital and financial literacy. Investments in healthcare, education, and sustainability would further empower women across sectors. A gender-responsive budget can unlock immense potential and drive inclusive growth. We’re optimistic about policies that not only support women entrepreneurs but also create a more equitable and innovative future for the nation.” 

13. Dr. Sanjay Gupta, Vice Chancellor, World University of Design 

“As Vice Chancellor of the World University of Design, I see India poised at a critical juncture in the global creative economy. Our animation, AR/VR, and design sectors are demonstrating world-class capabilities, while our educational institutions are producing exceptional creative talent. With the global creative industry projected to reach unprecedented heights – the AR/VR market alone touching $165 billion by 2030 – India has a unique opportunity. By combining our cost-effective talent pool with strategic policy support, we can transform from a service provider into a global creative powerhouse. The time for concerted action is now.”

14. Mr. Agendra Kumar, Managing Director, Esri India 

“The Union Budget for 2025-26 is expected to prioritize increasing investments in defense, manufacturing, infrastructure, and sustainable energy initiatives along with supporting the agricultural sector, ensuring a stable and dispute-free tax environment, and promoting innovation and entrepreneurship. With programs like ‘Mission Mausam’ in place, we expect more focus on promoting the use of innovative technologies for building a climate-resilient country.  The Budget is expected to drive innovation through focused investments in Deep Tech and the geospatial ecosystem. India’s DeepTech ecosystem shows immense growth potential and with advancements in AI, IoT, robotics, and drone technologies, it ought to play a pivotal role in shaping India’s position as a global innovation leader.  India’s geospatial sector is projected to grow at a CAGR of 16.5% to reach Rs 25,000 crore by 2025. The Union Budget must focus on simulating this growth through innovative government policies and allocation of funds for R&D in tech.”  

15. Dr. Yajulu Medury, Vice Chancellor, Mahindra University 

“We anticipate increased funding for the education sector in the upcoming budget as we see the growing emphasis on skill development, experiential learning, and research and development. The government’s focus should include initiatives such as tax incentives, industry-aligned training programs and faster patent approvals. Our young entrepreneurs need a strong support system right now. Increased financial incentives, simplified regulatory frameworks, and enhanced incubation support, will further stimulate the technological advancements. The government can establish more centres of excellence. However, it’s important to note that the success of these initiatives will also depend on the active participation of the private sector through public-private partnerships. Support towards these partnerships can enhance learning opportunities among students and make education more accessible. This approach can facilitate interdisciplinary education initiatives and bridge the gap between academic knowledge and practical application, ensuring a more holistic and effective education system.”

16. Mr. Ganesh Gopalan, Co-founder and CEO, Gnani.ai 

“The government has made impressive strides in advancing artificial intelligence, and the 2025 Union Budget presents an opportunity to build on this momentum by further bolstering the AI ecosystem. Increased investments in AI research and development, along with funding for the IndiaAI Mission and a significant budget allocation for AI startups, will be pivotal in driving innovation and adoption across sectors. Additionally, the development of advanced GPU infrastructure is crucial to support AI deployment at scale. Investments in ethical AI frameworks, and AI-powered entrepreneurship can transform industry dynamics while fostering growth. This strategic vision will ensure India is well-positioned to capitalize on the immense potential of AI, both domestically and globally.”

17. Mr. Sriram Kannan, Founder & CEO, Routematic

 “Budget 2025 holds the promise to drive transformative change in India’s transportation and sustainability landscape. We expect a strong focus on accelerating the adoption of electric vehicles (EVs) and shared mobility solutions, supported by advancements in AI technology and innovation. Expanding the 5% GST on EVs to batteries can lower production costs, making EVs more affordable for consumers. Equally important is the development of robust charging infrastructure across the country and policy measures that simplify tax structures and improve funding access for startups innovating in shared mobility and AI-driven route optimization. The govt should also look into encouraging corporates to embrace shared mobility as a cornerstone of sustainable transportation through tax benefits for organizations adopting shared mobility solutions and integrating electric vehicles (EVs) into their fleets.  These initiatives will empower innovation and fuel growth, creating a sustainable and future-ready mobility ecosystem. At Routematic, we remain committed to leveraging AI and advancing sustainable mobility and contributing to India’s vision of a cleaner, greener future.”

18. Mr. N.P Ramesh, COO and Co-Founder of Orb Energy

“India’s clean energy future depends on making solar more accessible, especially for businesses and SMEs looking to make the switch. The upcoming Union Budget is an opportunity to remove financial barriers and encourage adoption. One key step would be restoring 100% accelerated depreciation for solar investments—a policy that once made solar a more viable choice but was later reduced to 40%. Bringing it back would help businesses recover costs faster and drive wider adoption. In the residential sector, the subsidy provided on systems could be replaced by income tax incentives which would remove the administrative burden of managing the subsidy mechanism.  This could also get more people filing taxes. Equally important is strengthening domestic solar manufacturing. Providing better infra support and tax breaks would be better than production-linked incentives.

19. Dr. Miniya Chatterji, CEO, Sustain Labs Paris

“One of my key expectations is the introduction of incentives for renewable energy expansion, particularly in solar and wind energy, along with enhanced support for green hydrogen initiatives. Additionally, there is hope for increased allocation toward climate-resilient agriculture and water management, which is crucial for addressing the vulnerabilities faced by rural India due to changing climatic conditions. I also expect the government to take the next step in implementing the climate finance taxonomy announced last year.

On the other hand, my hope is that the budget will intensify its focus on climate education as that is the oft-neglected key component for the other initiatives to fructify. My hope is also that the Union Budget will support the growth of SMEs and startups, including catering to the mandatory sustainability related attributes and documentation required for their inclusion in global trade”. 

20. Mr. Manoj Gupta, Managing Director of Fortune Marketing

Mr. Manoj Gupta, Managing Director of Fortune Marketing, is optimistic about the upcoming budget and its potential to boost the manufacturing sector, particularly in security, fiber, telecom, and networking products. He anticipates policies that support infrastructure development, enhance ease of doing business, and provide incentives for local manufacturers to scale operations. Mr. Gupta believes that a strong push for “Make in India” initiatives and increased focus on self-reliance in technology-driven industries will create significant opportunities for manufacturers, enabling them to contribute to India’s economic growth and global competitiveness.

21. Mr. Prashanth Doreswamy, President and CEO, Continental India

The automotive sector in India is currently at the cusp of a massive transformation in terms of technology, self-reliance and sustainable future. Continental is both optimistic and hopeful that the Union Budget 2025 will lay the groundwork for a more effective, advanced, and environmentally accountable automotive ecosystem.

Key Expectations

A simplified classification and GST rate structure for automobiles and auto components.

One of the most significant issues in the auto sector is the complexity and inconsistency in the classification of auto parts, components and finished vehicles under the HSN codes. A simplified nomenclature will further facilitate the ease of doing business.

It would help in eliminating confusion and improve compliance, thereby reducing unnecessary litigation around classification.

Reduction of GST on hybrid vehicles

With the growing demand for greener, emission-friendly powertrains among the customers, a sustained focus on green mobility with cuts in GST for hybrid technologies is key. Hybrid vehicles in India are currently burdened with the highest rate of tax of 28%, making them less attractive than fully electric or conventional petrol/diesel vehicles. Hybrid Technology is always considered as a bridging tech, before we effectively move to EVs. This is additionally helpful while EV charging infrastructure develops.

Incentives to promote R&D, innovation in automotive electronics and encouraging start-ups.

Incentives to promote R&D and innovation in capital-intensive automotive electronics hardware sector. Government could consider additional income tax reduction for Indian corporates spending over 3 per cent of their turnover to advance R&D and filing patents/designs in India. Well-calibrated incentive system designed to empower industry players could motivate companies to invest in the R&D value chain in cutting-edge technology domains like AI, IoT, and embedded technologies in automotive electronics sector. We also need to support start-ups in this space. These steps will guarantee that India stays competitive in the global automotive landscape.

Overall policy landscape

A strong focus on aligning policies to improve the manufacturing capability while also taking care of the existing challenges to catalyze growth in this sector – like correcting the inverted duty structures in automotive, tax benefits for EV investments, more allocation in PLI schemes for automotive, more investments in charging infrastructure. In addition to promoting domestic manufacturing this will also aid FDI inflow.

To accelerate India’s journey towards becoming a global hub for automotive technology, we must have a conducive policy environment while addressing pressing sustainability challenges and elevating road safety standards.

We are eager to support the Indian government in this shared vision for mobility. Together, we can create a safer, more efficient, and environmentally responsible future of mobility.”

22. Advanced materials helping soldiers tread lightly and aerial vehicles safely lift off
Light weighting has emerged as the No.1 priority in defence and aerospace for applications across the board – from lighter aero structures to comfortable bulletproof vests. Materials science has helped address this challenge. Advanced ceramic- and graphene-based nano-composites are not only leading for being high-performance but also uncompromising when it comes to safety.

Mr Subbu Venkatachalam, Head of Marketing, Carborundum Universal Limited. 

The most competent man-at-arms of medieval times faced structural problems on the battlefield from the very armour meant to protect them. Not only did their iron suits interfere with vision and speech, their sheer weight rendered them clumsy and slow. The modern-day soldier cannot afford such impediments during combat. From the tactical, mobility and economical standpoints, their armour must serve them to the best advantage, keeping them agile and battle-ready at all in a combat zone.

Given geopolitical tensions, India wants to up the ante in its defence preparedness with an expanded budget to accommodate modernisation. At this juncture, light weighting has emerged as the foremost question – how to reduce movement impairment caused by significant weight burden while ensuring highest protection for man and machine? It is at this intersection that materials science has come to play an indispensable role.

Protection done right while keeping it light 

The weight-performance conundrum has been a long-standing one. A soldier could be carrying as much as one-third their body weight, up to a maximum of 40 kg. In fact, the bulletproof jacket (BPJ) alone weighed over 10 kg earlier. While the idea was to protect vital body parts, this greatly compromised their safety and comfort while affecting their ability to move quickly. This held true especially in unexpected combat situations. 

The imperative of light weighting without compromising on strength has brought materials science to the fore in defence and aerospace. Over the years, R&D has led modern personnel protective equipment through several iterations to finally arrive at advanced ceramics. Reaction Bonded Silicon Carbide (RBSiC), Zirconia Toughened Alumina (ZTA) and high-purity alumina have all proven their mettle in both these spheres. They are extremely lightweight while ably protecting soldiers and military vehicles against multiple hits. In fact, Army veteran Lt Gen H S Panag writes that battle casualties can be reduced by two-thirds with contemporary BPJs. 

Therefore, evolution in ceramic armour tech for lighter and more resilient bulletproof jackets and armoured vehicles can help them perform more efficiently in an evolving threat landscape.

Taking to the air safely with nanomaterials

Meanwhile, nanotechnology has climbed new heights. By allowing materials to be manipulated at the atomic and molecular levels, they have enabled ground-breaking advancements in materials science. As a result, nano-composites, nano-coatings, and other advanced materials have emerged, bringing greater flexibility and core strength, with negligible weight that are crucial for aerospace applications. 

Graphene is the new wonder-kid in materials science. Nearly 1000x lighter than paper and 200x stronger than steel, it could very well emerge as the material of choice for this strategic sector. Nanomaterial-reinforced composite materials, particularly graphene-reinforced polymers, have the potential to build next-gen structural components for various aerospace applications. When compared with components designed using standard composites, they present advanced mechanical properties at the same or lighter weight. Some of these include remarkable mechanical strength, superior toughness and stiffness, greater electrical and thermal conductivity, exceptional fire retardant capabilities, and higher barrier to moisture and gases.

They can also be uniquely designed, with particularly desired characteristics to fulfil specific purposes. As an example, graphene-reinforced structural components using high-purity graphene powders, graphene-based nano-composites and Carbon Fibre Reinforced Polymers (CFRP) can render Unmanned Aerial Vehicles (UAVs) or drones faster, smaller, and more efficient. This can be attributed to being far lighter while boasting extreme strength and higher durability. 

Moreover, UAVs play an important role in recon and transport of materials. They can be built with the capability to perform multiple airdrops of essential medicines to forces stationed in remote regions. 

Vehicle armour: taking the lighter route

Amphibious wheeled armoured fighting vehicles such as the Wheeled Armoured Platform (WhAP) are a hat-tip to India’s indigenous defence development capabilities. These terrain-agnostic vehicles need to be equipped with armour that helps them comfortably navigate while remaining extremely light on their feet and well-protected against projectiles. This calls for add-on composite armour engineered with advanced technical ceramics that ably fulfil all these criteria. In a testament to CUMI’s expertise, we were recently awarded the Transfer of Technology by DRDO-DMRL to manufacture add-on composite armour for WhAP and other armoured vehicles.

India is also keenly exploring indigenous light combat vehicle prototypes and that not only aid reconnaissance and surveillance, but also swift deployment, with easy manoeuvrability. This assumes greater significance in combat zones located in high-altitude regions with rarefied air and mountainous terrain where lightweight armour can be a critical decisive factor. 

This will enable India’s defence forces not only gain tactical but also performance advantage. Greater fuel efficiency and easy mobility will facilitate more advanced protection for our troops. 

A secure supply chain ‘made in India’

The ‘Make in India’ campaign has definitely gathered momentum since inception. As per government data from October 2024, India’s indigenous defence ecosystem is home to nearly 16,000 MSMEs and more than 430 companies that are licensed. In the last four years, 13,000 items listed by the Department of Defence Production on the SRIJAN portal have seen success in indigenisation by the private sector.

While these are definitive steps to Atmanirbharta, the campaign’s real goal can ensure India has a truly strong and secure supply chain. This can be attained only when the entire product lifecycle is realised within the country. As an example, essential products such as bulletproof vests and armoured vehicles – our first line of defence on-ground – use advanced ceramics as the base material to design armour. To define ‘Made in India’ here and the complete replacement of imports, it is pivotal for the raw materials to be produced in India. This will create a truly made in India product. Presently, CUMI is the only company in India that can supply fully backward integrated ceramic armour materials in this section. 

Outlook

Advancements in indigenous materials science research holds the key to self-sufficiency and also the opportunity for India to lead innovation globally in aerospace and defence. Projects leveraging Industry Academia collaboration like those involving leading material science companies such as CUMI with DRDO’s Centres of Excellence at elite universities in the country will enable cutting-edge innovations required by this sector.

As a leading player in materials science research and manufacturing, CUMI is at the forefront of this future.

23. Mr. Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd, leading solar module manufacturer.

“As India strives to achieve 500 GW of non-fossil fuel capacity by 2030, we expect the upcoming budget to accelerate the growth of the renewable energy sector. At AXITEC Energy India Pvt Ltd, we anticipate incentives for solar energy storage, green hydrogen, and grid-scale solar projects, which will help bridge the gap between India’s installed solar capacity of 60 GW and the ambitious target of 300 GW by 2030. Clarity on customs duty exemptions and GST reductions will also be crucial in making renewable energy more affordable. A supportive budget will propel India’s transition to a low-carbon economy.”

24. Mr. Rajesh Gupta, Founder & Director, Recyclekaro

“As India moves towards a more sustainable future, the Union Budget 2025 is a key moment to boost the country’s renewable energy and electric mobility sectors. We hope to see strong policy support and tax incentives that encourage innovation in clean energy solutions like solar, wind, and energy storage, while also prioritizing the growth of domestic manufacturing for green technologies. Simplifying regulations, alongside increased funding for renewable energy R&D and grid integration, can help India maintain its position as a global leader in sustainable energy. 

Additionally, as the EV market rapidly grows, the budget must address critical needs in the EV battery and recycling sectors. Policies that promote the development of advanced battery manufacturing, establish robust recycling networks, and support circular economy initiatives are crucial for a self-sufficient and sustainable electric vehicle ecosystem. Strengthening research and encouraging collaboration between public and private sectors in the battery supply chain will not only reduce our reliance on imports but also pave the way for India to become a global leader in clean innovation”.

25. Dr Ajai Chowdhry, Founder HCL, Chairman EPIC Foundation & MGB, National Quantum Mission of India

The US imposing restrictions on import of GPU’s to India brings us back to the old licensing regime to haunt us again. And China can follow with other technologies. And the rest of the West too. Imagine export of semiconductor manufacturing machines being restricted tomorrow which will stop our semiconductor ambitions!

This is reminiscent of the export controls on Space and Atomic energy that we faced in the past. And we then emerged out of that successfully getting our brilliant engineers creating our own technologies.

I am sure most of the design of NVIDIA and AMD GPU’s must have been done in India by Indian engineers.

Recently we had written about how critically we have to look at strategic autonomy and become self-sufficient in key technologies like semiconductors,
quantum technologies, security and defence, AI and drones.

This is the new Unipolar world where every country is on its own. And with the US and China vying for global dominance, India’s rise will resisted by both.

In semiconductor chips we have created our own RISCV technology in IITM for which we don’t need to keep paying licence fees. Using this we should design our own chips in RISCV to secure ourselves from future sanctions. This should be taken up in a mission mode with funds provided under ISM’s new DLI policy. And open up DLI for all Indian companies including corporates/ERCD exporters, MSME’S and Startup by increasing the size of the funding from the small 30 CR with generous 50 CR to 150 CR. Maybe we can create our own NVIDIA and AMD in the next ten years!

26. Mr. Sanchit Sekhwal Goyal, Director of Su-Kam Power Systems Limited

“We are eager for the Union Budget 2025 to include measures that support the transition to green energy, such as subsidies for adopting renewable energy. Additionally, we hope to see a greater allocation of funds for research and development in energy storage solutions. Incentives for solar power will also be vital for reaching energy independence. We anticipate that these requests will be addressed in the upcoming Union Budget 2025.”

27. Mr. Manikanth Challa, Founder & CEO, Workruit

The Union Budget 2025 holds immense potential to shape the future of career development and job readiness in India. Building on the momentum of last year’s initiatives, such as the Digital India program and increased allocations to skilling under PMKVY, we expect a stronger focus on integrating AI-driven tools and platforms into career-building programs. From Workruit’s perspective, we hope to see a dedicated budget for developing AI-based career guidance platforms and resume-building tools that empower job seekers to align their profiles with market demands and employer expectations. Subsidies or grants for startups working on ATS-compliant resume builders and personalized job search tools would be a step in the right direction.

Moreover, further enhancements to digital skilling programs and targeted upskilling initiatives for women, rural youth, and gig workers can make career-building efforts more inclusive. An increase in allocations for AI research and innovation, particularly in recruitment technology, will accelerate the development of tools that streamline hiring processes. Additionally, creating tax incentives for companies investing in AI for career-building and launching a central portal for skill certification and job matching could bridge critical gaps between education and employment. These steps would solidify India’s position as a global leader in talent development.