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New Delhi: In the Union Budget 2025, Finance Minister Nirmala Sitharaman unveiled a comprehensive vision aimed at bolstering India’s technological innovation and fostering a future-ready workforce.
Key announcements include the introduction of a dedicated Fund of Funds (FoF) for DeepTech startups, along with a commitment of Rs 20,000 crore to drive private sector innovation.
Sitharaman also highlighted plans to establish 10,000 tech research fellowships at IITs and IISc over the next five years, alongside expanding the Fund of Funds for Startups (FFS) with a Rs 10,000 crore increase.
Additionally, the budget outlines the creation of five National Centres of Excellence for Skilling and the promotion of global capability centres (GCCs) in tier-2 cities, reflecting a strategic focus on empowering innovation across the country.
Industry experts have hailed these initiatives as crucial steps toward building a robust ecosystem that drives growth in the DeepTech and AI sectors, while also enhancing employment opportunities and educational advancements in emerging fields.
Finance Minister Nirmala Sitharaman announced the Union Budget 2025 on February 1.
Priyanka Sharma, Head of MONAKA Software R&D Unit, Fujitsu Research of India, said, “Today's Union Budget 2025, focused on a 'Viksit Bharat,' presents a powerful vision for India's IT industry and its future workforce. The budget's commitment to a Deep Tech Fund of Funds and the PM Research Fellowship scheme is equally significant. These initiatives will provide critical support for next-generation startups and research institutions, fostering a vibrant ecosystem of innovation and attracting top talent.”
Anant Bengani, Co-Founder & Director - Zell Education, highlighted that the establishment of the AI Centre of Excellence with a Rs 500 crore outlay and the proposed Deeptech Fund of Funds will significantly enhance the quality of financial technology education. “The allocation for research fellowships and skilling centres will create a robust ecosystem for developing future-ready financial professionals. These initiatives align perfectly with our mission of delivering cutting-edge financial education," he added.
Rajeev Singh, Managing Director, BenQ India and South Asia, added, “Fostering skills in AI and related technologies, we can enhance employability and drive innovation across various sectors.”
Highlighting the impact of the government’s push for AI-driven education, with five national Centres of Excellence for AI in Education, Aditya Kandoi, CEO and Founder of Redcliffe Labs, said that the budget announcements mark a pivotal shift in shaping a future-ready workforce
He said, “AI has already begun transforming diagnostics, precision medicine, and predictive analytics, and with deeper integration into higher education, we are looking at a healthcare revolution where early disease detection, personalised treatments, and efficient patient management become the new norm.”
Srividya Kannan, CEO and Founder, Avaali Solutions, commented, “A key decision by the government to drive the digital economy is the formation of a national framework for promoting Global Capability Centers (GCCs) in emerging Tier-II cities. This move is set to boost employment growth and position India as a hub for high-value global services.
According to Kannan, the government's plan to establish 50,000 Atal Tinkering Labs is a visionary step toward fostering a culture of innovation and entrepreneurship across the country.
Kannan added, “By integrating interventions at schools, universities, research institutions, MSMEs, and industries, this initiative will create a robust ecosystem for technological advancement. It is encouraging to see the government’s strategic focus on the digital economy and its commitment to building a future-ready workforce.”