The country is gearing up for the much-awaited Union Budget 2025, where focus directly attracts the cutting-edge role of AI and Data Science. The budget this year shall be a defining moment in formulating the technological direction of the nation and establishing a vibrant AI ecosystem. Industry observers maintain that there is an undeniable call for strategic investments, reformative policies, and intense public-private partnership to unlock the true potential of these transformational technologies. The budget needs to address key areas such as R&D funding, talent development, ethical guidelines, and infrastructure for India to be propelled forward in the global AI race.
Shyam Enjeti, Chief Delivery Officer at Encora, shares his perspective, “With government backing and public-private partnerships, we can build a healthy ecosystem of engineering talent and cutting-edge research in AI-driven design, optimization, and automation. This ecosystem will set us on a path to industrial and technological success and unlock India’s full potential and accelerate our ability to build products and services from India, for the world. This is not just about technological advancement; it’s about building a future where Indian engineering ingenuity plays a pivotal role in shaping a smarter, more sustainable world.”
In addition to funding, clear policy direction and regulatory frameworks are critical for fostering innovation while mitigating potential risks. Collaboration between academia, industry, and government will be essential to translate budget allocations into tangible progress. The focus has to be placed on creating an ecosystem that sustains investment attraction and nurtures homegrown talent and innovation.
Investment in research and development is another key area of focus. Ballav Mundra, CFO, Hexagon R&D India, asserts, “With the Union Budget 2025 around the corner, it’s crucial for both the government and private sector to step up R&D investments to drive innovation. AI and data science have the power to transform the economy, boost productivity, and create new job opportunities. A progressive and well-planned approach in the budget can help unlock AI’s full potential, paving the way for a stronger digital economy and enhancing India’s global competitiveness.”
The healthcare sector is also ripe for transformation. Biju Davis, Senior Vice President – Engineering at Model N notes, “There is a visible sense of excitement within the pharmaceutical and medical technology sectors about the role innovation will play in transforming healthcare. The advancements in data science and artificial intelligence (AI) hold immense promise for reshaping how we approach patient care, making it more personalized, efficient, and accessible. To harness this potential, we urge the government to prioritize these areas in the upcoming budget by establishing clear benchmarks for innovation in the 2025-26 fiscal year.”
Moreover, ethical concerns, including data privacy and algorithmic bias, need to be addressed in building public trust and responsible AI development. Government infrastructure development will also be crucial in providing a digital backbone that supports the growth of AI across sectors.
Looking ahead, Girija Kolagada, VP of Engineering at Progress, emphasizes the need for a comprehensive strategy. She says, “As India prepares for the Union Budget 2025, fostering innovation in AI and data science should be a top priority. The recent advancements in technology highlight the need for strategic investments in deep tech and data science at various organizational levels. To remain globally competitive, government interventions—particularly in AI regulations—will be essential to ensure ethical and effective usage. Establishing clear innovation benchmarks for 2025-26, with a strong focus on supporting IT and Global Capability Centers (GCCs) in India, will be key to measurable progress.”
The Union Budget 2025 can prove to be a watershed moment for India’s AI and data science aspirations. Success in terms of allocation may not be the right yardstick to measure success in the budget; rather, it should help India build a more robust, ethical AI ecosystem that benefits all sections of society.
