How Budget 2025 Can Transform India’s Music-Tech Landscape

India’s rapidly growing music-tech industry is anticipating significant advancements in the upcoming Union Budget 2025. With an estimated valuation of India’s creator economy at ?10,000 crore, the sector is poised for transformative growth.

Industry leaders are calling for targeted policies to simplify intellectual property (IP) regulations, improve access to affordable capital, and incentivize innovation in artificial intelligence (AI) and music technology. Such measures, they believe, could position India as a global leader in music technology, fostering a vibrant ecosystem for startups and creators alike.

Strengthening Music Infrastructure and Education

To build a foundation for the music-tech industry, experts emphasize the importance of investing in education and infrastructure. Sanjay Ahire, Executive Director of Percept Live, advocates for targeted grants and scholarships modeled after the UK's 'Youth Music' and the US's 'Artist Relief.'

“These funds can play a vital role in fostering music education, mentorship, and access to tools, especially for talent from underserved regions,” says Ahire. He also highlights the need for music labs, performance spaces, and technology hubs in schools and colleges. “Such measures could lead to collaborations with music-tech startups, modernizing curricula, and preparing students for careers in this evolving industry,” he adds.

Ahire further calls for welfare initiatives for elder musicians, including provident fund schemes inspired by the UK's 'PRS Members' Fund.' Tailored financial solutions such as low-interest loans and affordable insurance for instruments could also strengthen the ecosystem.

Innovation in AI and Blockchain Technology

The music-tech sector is at the forefront of technological innovation, and stakeholders are urging the government to incentivize research and development in AI and blockchain. Varun Parikh, Founder of Bay Owl Studios, envisions a streamlined IP framework with a single-window portal for patents, trademarks, and copyrights.

“Blockchain and Web3 technologies can revolutionize rights ownership and royalty distribution, empowering independent artists and delivering more cost-effective, engaging experiences for listeners,” Parikh explains. His studio is already integrating blockchain and smart contracts to establish an independent music label, showcasing the potential of these technologies.

Expanding the Creator Economy

India’s creator economy is thriving, with hundreds of artists releasing music and live shows becoming increasingly popular. However, challenges remain in artist management, ticketing, and production.

Dhaval Kothari, Managing Director and Founder of All By Play, emphasizes the need for data-driven strategies to address these challenges. “Platforms like Instagram, Spotify, and Snapchat have become critical for marketing music and live performances. With proper resources and Union support, the industry can achieve sustainable growth,” says Kothari.

A Competitive Edge for Indian Startups

Gaurav Dagaonkar, Co-founder and CEO of Hoopr, reflects on the positive impact of last year’s budget and expresses optimism about the upcoming one. “The previous budget introduced tax benefits for startups and a focus on digital infrastructure. Building on this momentum, I anticipate initiatives that simplify IP regulations, improve access to affordable capital, and foster innovation in AI and music technology,” he says.

Dagaonkar emphasizes the need for a comprehensive policy framework to support the ?10,000 crore creator economy. “Such policies would not only drive innovation but also empower creators to thrive in a global marketplace,” he adds.

Unlocking India’s Music-Tech Future

As the Union Budget 2025 approaches, the music-tech industry’s wishlist is clear: a forward-thinking policy framework that supports education, infrastructure, and technological innovation. By addressing these needs, the government can unlock the immense potential of India’s music-tech sector, driving economic growth and positioning the country as a global leader in music technology.

This is a pivotal moment for India’s creative economy, and the upcoming budget could lay the foundation for a future where Indian startups and creators lead the charge in global music-tech innovation.