India's Budget 2025: Boosting AI, GCCs, and Tech Startups with New Initiatives

India's Budget 2025 Prioritizes AI and Tech Ecosystem

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has introduced a series of initiatives aimed at bolstering India's technology ecosystem, with a particular focus on artificial intelligence (AI), Global Capability Centres (GCCs), and startups 1

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Deeptech Fund of Funds and Startup Support

A standout measure is the introduction of a new Fund of Funds for startups, with an additional Rs 10,000 crore contribution, matching the existing government commitment 4

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. This initiative is expected to catalyze the next generation of startups and enhance entrepreneurship in the country 2

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. The government has also announced plans to explore a deeptech Fund of Funds to support technological advancements 4

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National Framework for Global Capability Centres

The budget introduces a national framework to guide states in promoting GCCs, especially in emerging Tier-2 cities 2

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. This framework aims to enhance talent availability, improve infrastructure, and foster industry collaboration 1

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. With over 1,580 GCCs in India employing 1.5 million people, this measure is crucial for addressing the growing challenge of finding skilled professionals in fields like AI, cybersecurity, and cloud computing 1

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AI and Education Initiatives

A significant focus has been placed on AI in education, with the announcement of a Centre of Excellence (CoE) for AI in Education, allocated a total outlay of Rs 500 crore 2

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. This builds upon the three AI centers established in 2023 for agriculture, healthcare, and sustainable cities 3

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Research and Skill Development

The budget allocates 10,000 fellowships for tech research at IITs and IISc under the Prime Minister's Research Fellowship (PMRF) Scheme 1

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. This initiative aims to build a talent pool ready for deep-tech innovations and strengthen India's position in the global AI race 1

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Infrastructure and Expansion

The government plans to expand infrastructure in IITs set up after 2015, creating space for an additional 6,500 students across five IITs 3

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. This expansion is crucial given that student intake at IITs has doubled from 65,000 to 1.35 lakh over the past decade 3

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GCC Expansion to Tier-2 Cities

The budget indicates a shift towards promoting GCCs in Tier-2 cities, moving beyond traditional hubs like Bengaluru and Hyderabad 3

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. This expansion is expected to tap into new talent pools and spread economic benefits across more regions 3

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Industry Response

Industry leaders have welcomed these initiatives. Aparna Iyer, CFO at Wipro Limited, emphasized the importance of investing in STEM talent to position India as a leader in the global AI race 1

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. Suresh Ramamoorthy, country head of Lingaro India, noted that the national framework for GCCs will help strengthen India's position as a hub for advanced technology solutions 1

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As India continues to position itself as a global leader in technology and innovation, these budget initiatives are expected to play a crucial role in shaping the country's tech landscape and fostering a new generation of AI-driven solutions and startups.