Finance Minister Nirmala Sitharaman unveiled a dynamic set of measures in the Union Budget 2025, signalling a significant push toward digital infrastructure, domestic manufacturing, and financial inclusion. As the second budget of the NDA government’s third term, this year’s plan aims to fortify India’s technological landscape with enhanced broadband connectivity, robust manufacturing incentives, and expanded financial support for gig workers.
Strengthening India’s Digital and Educational Infrastructure
One of the key highlights of Budget 2025 is the government’s commitment to expanding broadband connectivity across government schools and primary healthcare centres under the Bharat Net program. This initiative aims to bridge the digital divide by ensuring nationwide seamless internet access for students and medical professionals.
Additionally, the government has earmarked ₹500 crore to establish a Centre of Excellence for AI in Education, complementing the launch of five National Centres of Excellence for Skilling. To further boost higher education, new infrastructure will be introduced at IITs established post-2014, adding 6,500 more student seats.
Boosting Domestic Manufacturing and the ‘Make in India’ Initiative
A major thrust of the budget is the expansion of the ‘Make in India’ initiative, with a strong focus on manufacturing key components such as solar photovoltaic (PV) cells, grid-scale batteries, and electrolysers. The revision in Basic Customs Duty (BCD) is poised to accelerate domestic electronics manufacturing, aligning with Prime Minister Narendra Modi’s $500 billion electronics production target.
Notably:
- The BCD on interactive flat panel displays has been increased from 10% to 20%.
- The BCD on open cells and other LCD/LED components has been reduced to 5%, benefiting domestic manufacturers like Dixon.
Prabhu Ram, VP of CyberMedia Research’s Industry Research Group, hailed the changes, stating, “The revised BCD rates will bolster India’s manufacturing ecosystem, positioning the country as a global electronics hub.”
Driving Innovation Through Deeptech and Trade Reforms
The government is exploring a new Deeptech fund of funds to catalyse research and development. Additionally, the PM Gati Shakti initiative will facilitate greater collaboration between the public and private sectors by sharing crucial logistics data.
Another major reform is the introduction of Bharat Trade Net, a digital platform designed to streamline international trade. India Post is also set for a revamp, enhancing its logistics capabilities to support the country’s growing e-commerce and trade ecosystem.
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Financial Security for Gig Workers and Digital Credit Expansion
In a major boost for India’s gig economy, over one crore gig workers will now benefit from government-funded insurance, e-Shram registration, and digital identity cards. Additionally, the finance minister announced:
- An increased loan limit under the PM Swanidhi scheme.
- A new ₹30,000 UPI-linked credit card, making digital transactions more accessible for small businesses and independent workers.
With these transformative measures, Budget 2025 is set to reshape India’s technological and economic landscape, reinforcing the country’s position as a global leader in innovation and digital advancement.