Union Budget 2025: EY Expert's Expectations Focus On AI Implementation And Expansion

Budget 2025: The Union Budget is a crucial document that lays the roadmap for the economy and its various sectors for the upcoming fiscal year. As Finance Minister Nirmala Sitharaman will present the Budget 2025 on Saturday at 11 am, experts anticipate that the government will focus on AI-driven initiatives. They suggest that Budget 2025 could provide a critical opportunity for the government to build on its progress in AI. With past budgets laying the groundwork through initiatives such as the IndiaAI Mission, enhanced infrastructure support, and ethical AI frameworks, the focus should shift to implementation and expansion, they said.  

Here's a closer look at what could be tentatively expected in this year's announcements: 

Hari Balaji, Partner in Technology Consulting at EY India, explained the progress and future directions of the IndiaAI Mission. According to him, the IndiaAI Mission, with a significant allocation of Rs 10.4k crore, aims to enhance AI computing capacity, research, and innovation. 

He mentioned a few "key initiatives" under the IndiaAI mission which include IndiaAI Compute Capacity, IndiaAI Innovation Centres, and the IndiaAI Datasets Platform. Recent developments include plans to deploy 10,000 GPUs over the next 18-24 months and the scheduled launch of the datasets platform by January 2025, he noted. 

Mr Balaji listed a few Budget expectations that include, a potential expansion of the Rs 10.4k crore allocation to encompass a broader spectrum of existing and new initiatives, as well as to align with the volume and intensity of state-sponsored investment into AI in developed economies. He is also looking forward to more details on the GPU deployment timeline and specific plans for operationalizing the datasets platform. 

"Expanding the mission to further specifically support localised AI innovations, such as the development of vernacular LLMs or projects that enhance/build on DPI and/or focus on priority sectors," he said. A beta phase or pilot launch of the datasets platform might be announced to encourage early adoption and feedback from the AI ecosystem, he continued. 

Mr Balaji also anticipates better AI Infrastructure for strengthening digital foundations. "The government has recognised data centres as critical infrastructure and allocated Rs 4.5k crore toward AI computing infrastructure. These steps have set the stage for a robust digital ecosystem, vital for AI innovation," he said. 

Mr Balaji expects a "revision upward of the Rs 4.5k crore number to incentivise Indigenous chip design and manufacturing, reflecting the need for technological sovereignty in a challenging global supply chain environment."

"Additional support for high-performance computing infrastructure, either through direct investment or private-sector incentives, might be considered to enhance the ecosystem's capabilities," he explained. 

He expects the government to announce initiatives to make AI infrastructure more accessible to startups and research institutions could be hinted at, potentially through subsidies or collaborative frameworks. 

Speaking about responsible AI, Mr Balaji said, "The government has demonstrated its commitment to ethical AI through advisories on fairness and bias in algorithms and plans for a National Committee on Responsible and Trustworthy AI." 

He expects that announcements regarding the establishment of the National Committee on Responsible and Trustworthy AI might provide clearer governance mechanisms, though timelines could remain tentative. He said that measures like mandatory watermarking of AI-generated content could be proposed as part of efforts to combat misinformation and promote accountability. 

"The introduction of an AI regulatory sandbox, enabling controlled experimentation and fostering innovation, might also feature in the government's agenda," he stated. 

For workforce development, Mr Balaji said partnerships with industry leaders have been initiated to train 5 lakh individuals, and AI Productivity Labs have been introduced to address workforce readiness. However, scaling these efforts to match the sector's growth remains a challenge. 

He anticipates that this year's budget will focus on the expansion of skilling programs tailored to regional economic needs, and industries such as manufacturing and services, through strengthened collaborations with private players.