Budget 2025 should focus on threat intel for better cybersecurity posture

– Tax incentives should be linked to improvements in cyber defense posture
– Industry status recognition for cybersecurity
– GST on security products and services should be reduced

As the Indian government prepares to unveil the Union Budget, Cybersecurity should be a key focus area, given the rising number of cyberattacks, threats and digital transformation initiatives. ETCIO spoke to cybersecurity experts who want increased budgetary allocations to strengthen national cybersecurity infrastructure, enhance threat intelligence capabilities, and improve incident response mechanisms.

"Considering the current spate of cyberattacks, it would be nice if tax incentives are linked to improvements in cyber defense posture," says Agnidipta Sarkar, Vice President CISO Advisory, ColorTokens Inc. and former Biocon group CISO.

Governments offer various tax incentives, such as tax credits, deductions, and subsidies, to promote specific economic activities or industries. Companies can lower their tax bills by taking full advantage of these incentives, such as ones found in sections 80C through 80u, which can include research and development tax credits, green energy incentives, or investment-related deductions.

Cybersecurity investment tax credits are a good idea. It is a type of tax incentive offered by the government to encourage businesses to invest in cyber defense measures. These tax credits provide a financial benefit or deferred taxation to companies that take steps to protect their sensitive information against cyber threats. Additional incentives could be allocated for India based cyber security startups that use artificial intelligence to create smart cybersecurity platforms, he adds.

Imran Iraqi, another well-known cybersecurity leader, has a list that the government should think about in order to focus on cybersecurity:

• GST on security products and services should be reduced
• Incentivize Make in India Security Products
• Budget for Cybersecurity course in National Skills Development / Skill India Program so that cybersecurity skills and career path are accessible to the larger sets of our rural and semi-urban population
• Promote cybersecurity products and services export zone with focus on innovation
• Startup incubation centres for industry to flourish
• Industry status recognition to cybersecurity

According to Ashok Hariharan, CEO & Co-Founder, IDfy says that there are three important areas to focus on with respect to cybersecurity.

• Investment and support for AI investment – specifically in multimodal AI models and support in terms of tax breaks – and specific investment in SLM/LLM as well as computer vision models.
• Support for startups, specifically long term capital for deep tech initiatives. The traditional capital availability for deep innovation doesn’t exist in India. VCs are largely short term focused.
• Tax reforms and incentives for innovation and people working at these organizations – specifically relooking at taxation for ESOPs – specifically tail-ending of tax payment at the point of sale rather than exercising of shares.