As India gears up for the Union Budget 2025, key figures from the fintech, technology, and cybersecurity sectors have shared their insights and recommendations, highlighting how targeted investments and policy changes could spur innovation, growth, and security in the country. The vision for the upcoming budget revolves around fostering inclusive economic growth, strengthening national security through technological advancements, and ensuring sustainable development in the digital economy.
Positive Macroeconomic Impact on Digital Payments
Deepak Chand Thakur, Co-founder and CEO of NPST, emphasized the macroeconomic benefits of increasing discretionary spending, particularly as it pertains to boosting UPI transaction volumes. With UPI becoming a dominant player in India’s digital payments landscape, Thakur noted that any relief measures in the upcoming budget to stimulate personal spending would be welcomed by the fintech industry.
“Increased discretionary spending can have a favorable impact on UPI transaction volumes, which is pivotal for the fintech sector’s continued growth,” he said. He further suggested that the introduction of a Merchant Discount Rate (MDR) regime for UPI payments, especially for transactions above Rs 2,000, would be a step towards creating a sustainable revenue model. “With the rising costs in infrastructure, fraud management, and compliance, participating entities in the UPI ecosystem need to monetize the platform to ensure its continued success,” Thakur added.
On the subject of AI and data, Thakur also advocated for a policy that democratizes data through AI, which he believes could significantly improve fraud prevention across the digital payments sector. “AI-driven collaboration can strengthen fraud prevention mechanisms, particularly benefiting smaller players who need government support for intelligence sharing,” he said.
Union Budget 2025 Must Focus on Technology-Driven Economic Growth
Suresh V Panicker, COO and Co-founder of Experion Technologies, highlighted the importance of the Union Budget 2025 in driving inclusive economic growth through technology: “As we look forward to the Union Budget 2025–2026, I believe it presents a pivotal opportunity to drive inclusive economic growth through technology. Prioritizing funding for AI research and strategic investments in R&D for defence and space-related software will empower tech companies to contribute to national security and innovation. Additionally, supporting small and medium-sized IT enterprises under the ‘Make in India’ initiative can drive job creation and economic growth. Encouraging companies participating in the ‘Make in India’ program to outsource IT projects to small & mid-size Indian software firms will not only strengthen domestic industries but also provide critical employment opportunities for young professionals. On the grassroots level, while digital payment platforms have empowered street vendors, small kirana stores are struggling against the rise of mall culture and bulk buying advantages. The government can play a transformative role by supporting the formation of cooperative clusters for kirana stores, enabling them to access bulk order discounts and remain competitive. The IT industry can build integrated systems for billing, inventory management, procurement, GST management and create a unified platform that simplifies operations for these retailers and enhances their business. Partial government funding for such initiatives could significantly accelerate this transformation. By leveraging India’s digital infrastructure and mobile-first population, we can build an inclusive business model that empowers millions of small businesses, strengthens the mainstream economy, and drives sustainable growth.”
Expectation from Union Budget 2025 on Cybersecurity Innovation
Chetan Jain, Founding Executive Director and Managing Director of Inspira Enterprise, turned attention to the rapidly evolving cybersecurity landscape and its critical importance in the digital age. “Some early thoughts on the Union Budget, to help promote innovation and growth in the cybersecurity space. This year will be crucial to boosting the adoption of secure AI solutions. To achieve this, the government should introduce incentives in the Union Budget to encourage homegrown cybersecurity firms to invest in R&D and implementation of secure AI technologies. Secondly, cyberbullying is presenting itself as a fast-growing threat to online safety and security, especially with cyber criminals targeting senior citizens and young adults. To address this issue there should be dedicated funds in the Union Budget for creating awareness among citizens in India besides investing in strengthening prevention mechanisms for the well-being of the people. Such measures would strengthen the country’s cybersecurity framework and ensure protection against emerging threats.”
