Will Sitharaman write a new script for tech and telecom?

As Budget 2025 nears, speculation builds around incentives for semiconductors, Satcom, R&D, and local manufacturing to drive communication sector growth in India

- BY VERNIKA AWAL

After two half-session Union Budget presentations in 2024, the stage is set for Union Finance Minister Nirmala Sitharaman to deliver the first full fiscal budget of Modi 3.0 government. As the nation anticipates the budgetary roadmap for the year ahead, one consensus emerges among industry stakeholders: technology is poised to play an indispensable role across all sectors.

The Interim Budget on 1 February 2024 offered limited announcements on domestic technology adoption. Key areas, such as further incentivising Artificial Intelligence (Al) and semiconductor ecosystems, were deferred, leaving room for future government capital expenditure. Notable technology-related initiatives included a rooftop solar deployment programme, a Rs 1 lakh crore fund to encourage private R&D with 50-year interest-free loans, a push for self-reliant (aatmanirbhar) technology adoption in defence manufacturing, and investments in core electric vehicle infrastructure development.

In the second Interim Budget, Sitharaman introduced a Rs 1,000-crore venture capital fund for space startups and reduced import duties on mobile phones, chargers, and select components. Additionally, the government launched a National Critical Minerals Mission to localise key parts of the technology supply chain, removing import duty restrictions on various critical minerals.

As the upcoming fiscal year unfolds, several expectations align closely with the trajectory set last year, underscoring the evolving role of technology in driving India's economic growth.

REDUCTION OF BSNL OUTLAY