By – Sachin Alug, CEO, NLB Services
“As the Finance Minister prepares to present India’s Union Budget 2025-26, it carries the hopes of the nation’s most powerful demographic – its youth, who make up over 65% of the population. Their economic aspirations and professional development will significantly influence India’s growth trajectory.
Job creation, workforce development, and technological advancement stand critical to India’s path toward a $5 trillion GDP by 2027-28. These elements form the base of sustainable economic growth. The IT sector, a key driver of India’s economic momentum, anticipates substantive policy reforms to strengthen digital infrastructure and address skill shortages. As technologies like Artificial Intelligence, Machine Learning, Data Analytics, Generative AI, and Cloud Computing become fundamental to business operations, government-backed skill development initiatives are essential. These programs will be crucial in bridging the current talent gap and meeting industry demands. Given intensifying cybersecurity threats, developing specialized talent in digital security has become a strategic imperative for protecting India’s digital infrastructure and assets. The advancement of AI innovation requires comprehensive fiscal support through research grants, strategic tax benefits, and structured public-private collaborations. These mechanisms will establish sustainable commercial pathways for long-term AI research initiatives.
Additionally, introducing focused export benefits for Global Capability Centers would strengthen India’s position in the global IT landscape. As these centers scale their operations, they will generate substantial foreign exchange earnings while fostering advanced technological capabilities within the country.
Beyond IT, sectors like semiconductors, tourism, and healthcare await strategic budget measures. The semiconductor industry requires specialized talent in chip fabrication, design, and ATMP (Assembly, Testing, Marking, and Packaging) operations. Similarly, tourism sector growth hinges on incentives that benefit local service providers and artisans, while healthcare demands both skilled medical professionals and technological modernization to meet growing patient needs.
The Union Budget 2025-26 presents a pivotal opportunity to accelerate India’s economic trajectory, by prioritizing skill development, technological innovation, and industrial growth, it can create the momentum needed for India’s transformation into a $5 trillion economy.”
