The Annual Union Budget of India plays a crucial role in shaping various industries, including the security and surveillance industry. The budget affects this sector through policy decisions, tax incentives, infrastructure allocations, and funding for defense and homeland security.
Recently the Finance Minister Mrs. Nirmala Sitharaman has presented the Union Budget 2025 which is receiving largely positive reactions from the industry. Here are what some of the industry stalwarts speak:
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 reforms. It has a booster dose for India’s technology ecosystem. This is a growth-oriented budget with significant relief for the middle class. The Union Budget has sparked interest in the video security industry and its key stakeholders. The key announcements and provisions relevant to the video security industry are getting positive feedback.
The budget proposes establishing a Centre of Excellence in Artificial Intelligence for education, with an outlay of ₹500 crore. This initiative could have positive implications for AI-powered video security solutions. The Union Budget aims to boost domestic semiconductor manufacturing through incentives and investments. This could lead to advancements in video security technology such as improved camera sensors and processing capabilities. The budget proposes exempting customs duties on critical minerals including lithium-ion battery scrap, which could benefit the manufacturing of security devices. The budget plans to expand broadband connectivity to rural schools and health centers, which could create new opportunities for video security solutions in these areas. The incentives for ‘Make-in-India’ initiatives can help the electronic security industry to expand and grow further.
Sanjeev Sehgal MD & Founder, Sparsh CCTV
The Union Budget 2025-26 reinforces India’s commitment to self-reliance in manufacturing through initiatives like the National Manufacturing Mission and the expansion of the Production Linked Incentive (PLI) scheme. A significant advancement in cybersecurity and national security is the government’s decisive push for Standardization Testing and Quality Certification (STQC) compliance. For this directive to be truly impactful, 100% enforcement and on-ground implementation are imperative. This policy marks a transformative step in preventing data breaches, mitigating cyber threats, and elevating surveillance standards to global benchmarks.
To position India as a global leader in CCTV manufacturing, a more holistic and forward-thinking approach is essential. While the budget’s emphasis on semiconductor development is commendable, expanding the Design-Led Incentive (DLI) scheme beyond chip development to comprehensive security product innovation is imperative. Additionally, targeted interventions in raw material sourcing, enhanced R&D incentives, and the seamless execution of STQC-framed policies will play a pivotal role in strengthening India’s indigenous surveillance ecosystem.
At Sparsh CCTV, we are at the forefront of this transformation, pioneering STQC-compliant, cyber-secured surveillance solutions that resonate with Atmanirbhar Bharat. We remain committed to collaborating with policymakers, industry stakeholders, and innovators to fortify India’s security infrastructure and position the nation as a global hub for electronic surveillance.
Sunil Gupta Co-founder, CEO & MD, Yotta Data Services
The Union Budget 2024 reinforces India’s ambition to emerge as a global technology powerhouse by driving AI, deep tech, and cutting-edge research. The ₹500 crore investment outlay for a Centre of Excellence for AI in education is a big step towards making AI-led learning mainstream. This will not only help in upskilling the AI talent pool in India and preparing the youth for the jobs of the future but also democratize access to high-quality education by enabling AI-driven solutions such as real-time language translation and personalized learning pathways. This is especially critical in a country where millions of students receive their education in their native languages and aspire to careers in sectors that primarily operate in these languages. Additionally, measures like the Deeptech Fund of Funds and the 10,000 fellowships for tech research at IITs and IIScs under the PM Research Fellowship Scheme will help bridge the gap between education and employability while creating a robust pipeline for homegrown AI-led technological breakthroughs. By integrating AI into education at scale, India is not only addressing existing challenges in the education system but also equipping students with the digital and analytical skills necessary for the modern economy.
Just as the IT boom positioned India as a global tech hub, this budget lays the foundation for long-term AI leadership by prioritizing talent development. By fostering AI-driven learning, removing financial and linguistic barriers, and enabling large-scale skill-building, India is not just preparing for the future but actively shaping it – taking a decisive step toward global digital leadership.
Vishak Raman Vice President of Sales, India, SAARC, SEA and ANZ at Fortinet
‘Viksit Bharat’ lays out a clear road map for developing the skills sets of our future workforce to accelerate growth with skilled labour and meaningful employment. The emphasis on scientific thinking is seeded at the school level with the setting up of Fifty thousand Atal Tinkering Labs to cultivate a culture of Innovation among young minds. This goes all the way to funding ten thousand fellowships at IITs and IISc for technology researchers at the highest level.
Five National Centres of excellence in skilling with global expertise is a good example of private public partnership to ensure the best of curriculum for manufacturing. We also now have a fourth Centre of Excellence in Artificial Intelligence for education and this investment clearly outlines we need a pool of talent that will help us to exploit the potential of AI in various fields.
We welcome the 50% duty cut on switches for telecom as this will reduce the cost of secure networking for the service providers. The cybersecurity skills gap remains a major concern as we continue to struggle in securing our digital assets. In the area of cybersecurity training and upskilling we at Fortinet are at the forefront of addressing the skills gap and are closely working with CERT-IN and AICTE where one lakh internship is on offer to professionals interested in starting a career in cybersecurity.
IT and Technology Expertise will continue to drive economic growth with the Deep Tech Fund of Funds for start-ups supporting first time entrepreneurs to innovate and ideate new business opportunities. The four powerful budget engines chug along very nicely for Agriculture, MSME, Investment and Export growth taking everyone along on this journey of prosperity and resilience.
