“Unlocking India’s AI Potential: What to Expect from Budget 2025 for Global Leadership” – The Times of India

By Anjani Kumar

The Union Budget 2025-26 is crucial for India. This budget can help us fully tap into the power of artificial intelligence (AI) for economic growth and innovation. As countries compete in advanced technology, India has the chance to become a global leader in AI. To seize this opportunity, the budget needs to be strategic and long-term, tackling challenges and building a strong AI ecosystem.

Key Areas for Investment

• Building Infrastructure
  • India’s growing digital world requires better data centers and computing power.
  • The government is investing in 10,000 GPUs to kickstart progress.
  • The budget should allocate more funds to improve AI infrastructure, focusing on:
  • Shared systems that make high-performance GPUs accessible to startups and universities.
  • Specialized zones that offer incentives to tech companies.
  • Eco-friendly practices that promote green energy in data centers.
  • Lowering import taxes on AI hardware to encourage global competitiveness.
• Encouraging Responsible Innovation
  • Fast growth of generative AI raises issues about ownership and ethical use.
  • A smart regulatory framework is essential for promoting innovation while ensuring ethics. This includes:
  • Guidelines on ownership of AI-created content.
  • Access to quality datasets for training AI models.
  • Partnerships between the government, universities, and businesses to fund AI projects.
• Improving Data Access
  • High-quality data is vital for AI development. The budget should help overcome data access challenges through:
  • A national data repository for non-personal datasets from various sources.
  • Revised policies that allow secure use of public data for AI.
  • Clear regulations on data protection to avoid uncertainties in laws.
• Expanding AI Applications
  • AI could transform sectors like healthcare, agriculture, and finance. The government can:
  • Offer tax benefits to businesses investing in AI.
  • Increase funding for AI in specific sectors.
  • Boost grants for AI-focused startups.
• Workforce Development
  • Training the workforce is essential. The budget should prioritize:
  • Establishing AI training centers with industry collaboration.
  • Providing scholarships and incentives for STEM education, especially for women.
  • Integrating AI into school curricula.
• Supporting Startups
  • India’s startup scene is vital for growth. The budget should:
  • Ease regulatory requirements and provide tax relief for startups.
  • Expand funding programs and low-interest loans for these companies.
  • Create innovation zones with mentorship and resources for startups.
• Enhancing Cybersecurity
  • As digital use increases, solid cybersecurity is critical. The government should invest in:
  • Advanced tools to strengthen cybersecurity infrastructures.
  • Establishing ethical norms for responsible AI use.
  • Tax incentives for firms that adopt robust security measures.

This budget presents a chance for India to emerge as a global powerhouse in AI. By improving infrastructure, supporting responsible innovation, enhancing data access, expanding applications, preparing the workforce, nurturing startups, and boosting cybersecurity, India can create a thriving ecosystem that drives growth and leadership in technology.

(The author is Partner, Deloitte India)