As India prepares for the upcoming Union Budget 2025, the tech industry is eagerly awaiting reforms and initiatives that will propel the country’s AI-driven growth. Our Co-Founder & CFO, Jahnvi S, recently shared her insights on this topic, emphasizing the need for increased funding to accelerate AI-driven growth in India’s electronics sector.

The Electronics Sector: A Key Driver of Growth

India’s electronics sector is poised for significant growth, with the government aiming for US$ 300 billion in electronics manufacturing and US$ 120 billion in exports by 2025-26. To achieve this ambitious target, it is essential to prioritize investments in AI-driven technologies that will drive innovation, efficiency, and productivity in the sector.

The Role of AI in India’s Growth Story

AI is expected to contribute significantly to India’s GDP, with estimates suggesting that it will add US$ 450-500 billion by 2025. This growth will have a ripple effect on complementary industries such as IT/BPO services, customer care call centers, co-working spaces, and the gaming industry. As AI-driven technologies enhance workplace efficiency and productivity, these sectors will benefit significantly, driving exports and contributing to India’s US$ 5 trillion GDP target.

Key Recommendations for the Union Budget 2025

To unlock India’s AI-driven growth potential, we recommend the following:

1. Increased funding for AI-driven initiatives: Allocate sufficient funds to support AI-driven research, innovation, and entrepreneurship in the electronics sector.
2. Tax incentives for AI adoption: Offer tax incentives to encourage businesses to adopt AI-driven technologies, driving growth and productivity.
3. Skilling and upskilling programs: Invest in skilling and upskilling programs that will equip the workforce with AI-related skills, ensuring they are prepared for the jobs of the future.

Conclusion

The Union Budget 2025 presents a critical opportunity for the government to prioritize AI-driven growth in India’s electronics sector. By allocating sufficient funds, offering tax incentives, and investing in skilling programs, we can unlock India’s growth potential and achieve our ambitious targets. We look forward to a budget that will propel India’s AI-driven growth and cement its position as a global leader in the tech industry.

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