UNION BUDGET 2025: and Security and Surveillance
Anil Puri, CMD, APS Group The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, outlines several focal areas aimed at stimulating economic growth and infrastructure development in India.The budget places significant emphasis with1 lakh crore Urban Challenge Fund on Urban Development,with ₹250 billion Maritime Development Fund and modified UDAN scheme adding 120 new destinations is likely to directly influence security requirements in all these sectors. The Urban Challenge Fund aims to develop cities into economic hubs, encouraging high-rise buildings, business parks, shopping malls, and smart city projects. With increased commercial spaces, the demand for security personnel, surveillance systems, and access control measures will rise. Smart city projects include AI-driven surveillance, IoT-enabled security systems, and predictive policing, requiring private security agencies to upskill their workforce. Greater integration of public-private security collaborations in areas like automated traffic management and crime prevention is emphasized in the current budget. Tax reforms will place considerable disposable income in hands of large cross section of population increasing the footfall in commercial hubs. Redevelopment of markets, railway stations, and urban transport hubs leads to higher foot traffic, necessitating advanced crowd control strategies, perimeter security, and emergency response systems. Enhanced use of CCTV monitoring, baggage screening, and mobile security patrols in commercial areas. While the budget does not explicitly address the private security industry, several provisions may indirectly influence the sector: APS Group as leading security provider appreciates that these initiatives are poised to create ample opportunities for the private security industry by expanding the need for security services across various burgeoning sectors. Gaurav Taywade Director, India Operation | Vicon Industries The Union Budget 2025–26 of India has introduced several key initiatives impacting the security and surveillance industry. The budget emphasizes boosting domestic manufacturing through the ‘Make in India’ program, aiming to reduce reliance on imports and enhance self-sufficiency in defense production. The budget has earmarked over ₹1,900 crore for cybersecurity projects, marking an 18% increase from the previous year’s allocation of ₹1,600 crore. This investment aims to bolster India’s defenses against rising cyber threats. The rise in funding comes as digital frauds and cybercrime pose growing risks to India’s financial and national security. A ‘deep tech fund of funds’ amounting to ₹20,000 crore (approximately US$2.3 billion) has been proposed to support startups specializing in advanced technologies, including artificial intelligence and surveillance systems. With large-scale urban projects, there will be a growing need for private security collaboration with local law enforcement. Security agencies will play a key role in event security, high-rise building protection, and commercial asset safeguarding. The government has approved the development and launch of a constellation of 52 surveillance satellites under the Space Based Surveillance Phase-III project. This initiative aims to enhance India’s capabilities in monitoring land and maritime domains. Aditya Khemka Managing Director, CP PLUS The Union Budget 2025 reaffirms India’s commitment to digital transformation, cybersecurity, and self-reliance in technology. With a record allocation of ₹26,026.25 crore for MeitY and a significant ₹2,000 crore investment in the IndiaAI Mission, the government has laid a strong foundation for an innovation-driven future. The more than doubled semiconductor fab budget, coupled with a 55.8% increase in PLI allocations, underscores India’s vision to become a global hub for electronics manufacturing and AI-driven advancements. Additionally, the 83.2% boost in cybersecurity funding reflects the government’s proactive approach in fortifying India’s digital infrastructure against evolving cyber threats. This strategic budget empowers indigenous innovation, strengthens digital security, and accelerates India’s journey toward technological sovereignty, ensuring that the nation remains at the forefront of the global digital economy. Dr Niranjan Hiranandani Chairman, NAREDCO & Hiranandani Group From the vantage point of the real estate and infrastructure sectors, the Budget FY26 sets the stage for transformative growth. Central to this budget is its unwavering focus on infrastructure enhancements. Notably, it incentivizes the purchase of a second flat, encouraging real estate investments. Moreover, the introduction of SWAMIH Fund 2.0 seeks to alleviate the burden on constrained homebuyers by delivering stalled projects, while the hike in TDS on rentals up to ₹6 lakhs promises to bolster rental investments. By expediting mergers and acquisitions, the budget aims to initiate new real estate projects under innovative business models. Additionally, addressing the skill gap through the establishment of new centers of excellence will help bridge the widening talent chasm. However, the concern over inadequate long-term investment allocation remains a hindrance for achieving the ambitious Viksit Bharat growth targets. The middle class, a crucial driver of demand, stands to benefit immensely from tax incentives that translate their aspirations for an improved quality of life into tangible home-buying prospects. This is expected to generate a positive demand curve in the real estate sector. Banks have reported a notable 40% increase in retail home loan portfolios post-COVID, and the anticipated reduction in home loan interest rates will further fuel this sustained demand. Emerging growth corridors featuring new projects with integrated amenities are poised to attract even more buyers. The budget also shines a spotlight on labor-intensive sectors to ensure that quality, productivity, and competitiveness are enhanced, positioning India as a formidable global player. A strategic highlight is the finance minister’s announcement of a ₹1 lakh crore Urban Challenge Fund. This fund aims to address land and development obstacles, foster robust social infrastructure in key urban centers, and drive infrastructure development across urban corridors. The focus on new airports, shipping ports, and inland waterways is set to transform India into a competitive logistics hub, reducing product costs and boosting economic efficiency. However, it is worth noting that the budget has not taken significant action towards uplifting affordable housing, a segment crucial for inclusive growth and economic stability. In summary, the Budget FY26 is a forward-thinking document that lays a comprehensive foundation for growth, though certain areas like long-term investment and affordable housing require further attention to fully realize the vision of a prosperous and developed Bharat. Ashish P. Dhakan MD & CEO, Prama Hikvision India Pvt. Ltd. We welcome the progressive Union Budget 2025-2026, which has a future roadmap to steady…