While industry leaders appreciate the move, they emphasize that India requires more comprehensive strategies to accelerate innovation and compete globally.
Key Initiatives and Allocations
The budget highlights include:
- Rs.20,000 crore for R&D: Targeting private-public partnerships to boost innovation.
- 50,000 Atal Tinkering Labs: Set to be established over the next five years, fostering scientific temper among students.
- National Centres of Excellence: Five new centres focusing on skilling, supported by an additional Rs.500 crore investment in AI-driven education.
Shirshendu Mukherjee, Managing Director of Wadhwani Innovation Network, praised the budget, stating, “These investments will accelerate AI, digital transformation, and position India as a global leader in emerging technologies.” He also stressed the importance of industry-academia collaboration and scalable funding models to sustain momentum.
Industry Response: Calls for Enhanced Support
Despite the positive reception, industry experts argue that the current allocation is only a starting point. Dushyant Chachra, CFO of SAEL, highlighted the need for a more sustained strategy, suggesting additional R&D funding, streamlined regulatory processes, and tax incentives to attract private investments.
Vishwanathan Iyer, Professor at Great Lakes Institute of Management, emphasized deeper tax incentives for corporate R&D, saying, “Encouraging corporate R&D through weighted deductions and public-private partnerships can accelerate innovation.”
Comparative Concerns with Global R&D Spending
Bharat Kale, Director at MIT World Peace University, pointed out that India’s R&D spending lags behind countries like China, Japan, and South Korea. “While the budget has increased, the Indian industry’s participation in R&D remains minimal and needs significant improvement,” he noted.
Adding to this, Sourabh Kulshrestha from Shoolini University highlighted the DST’s budget surge from Rs.2,819 crore in 2024-25 to Rs.23,290 crore in 2025-26. This boost will support key projects in quantum computing, supercomputing, and geospatial infrastructure.
Conclusion
While the Union Budget 2025 lays a solid foundation for India’s R&D growth, industry leaders believe sustained investments, policy reforms, and robust public-private partnerships are essential to position India as a global innovation powerhouse.
