Tech czars’ expectations from the Modi government in the Interim Budget 2024-25
The upcoming Interim Budget 2024-25, to be presented by Finance Minister Nirmala Sitharaman on February 1, will continue to prioritize technology as a driving force behind India’s economic growth. With the rise of digitalization and the concept of Digital India, as well as the increasing prominence of artificial intelligence-enabled tools, significant and lasting changes are anticipated. It is worth noting that the full budget will be presented after the general elections, in the presence of the new government. In the previous year, the Union Budget placed a strong emphasis on technology, with several noteworthy announcements, such as the establishment of Centers of Excellence for Artificial Intelligence (AI), Labs for 5G services, and a national digital library for children and adolescents.
While we’re as in the dark as you are when it comes to what to expect ahead of the Interim Budget 2024-25, the tech czar has certain expectations for the tech sector from the budget.
Interim budget 2024-25: What the tech czars are waiting for
1. “As India moves forward on the journey of digital transformation, the upcoming budget provides a timely window to develop a world-class data center ecosystem to drive this evolution. We hope for incentives to boost domestic production and build infrastructure tailored specifically to the massive and seamless connectivity needs of data centers. Attractive capital subsidies for setting up future-ready facilities and easy financing options to compensate for development costs free up growth. We are also planning regulations that encourage the use of renewable energy to meet data centers’ needs for clean electricity. In addition, preferential procurement directives favoring home-grown data centers give priority. India can quickly move up the technology value chain and establish a dominant position in the delivery of digital services globally as it focuses on nurturing a domestic state-of-the-art data center industry. The issuance of the infrastructure tag has speeded up logistics significantly,” says Bimal Khandelwal, CFO of ST Telemedia Global Data Centers (India).
2. “Greater alignment between fintech companies and public institutions is crucial for the development of India’s fintech ecosystem. Financial products built on top of the India Stack have delivered strong results in the world of digital payments. We expect the budget to provide incentives to encourage fintech companies to drive more innovation in other areas of banking, such as credit, investments, savings and advice. We also expect digital lending, especially small loans, to grow significantly when appropriate checks and balances are in place to protect borrowers. We expect the budget to further expand AI innovation centers of excellence and increase investment in supercomputers to drive growth in homegrown AI solutions,” says Bipin Preet Singh, Founder and CEO, MobiKwiki.
3. “Awaiting the 2024 Union Interim Budget, HMD Global has optimistic expectations for the Indian smartphone market. We are planning to expand or improve the PLI (Production Linked Incentive) policy, and aim to strengthen local production and encourage the supply chain of domestic components. The positive impact of the budget on operations, especially in the local in manufacturing is expected, although the exact planning depends on the final announcements. Our wish is to emphasize more incentives for local production, encouraging component manufacturing in India and supporting exports. In the face of possible changes, we are ready to make necessary changes anticipating a budget based on existing policies to promote stability and growth. HMD Global is remains committed to driving India’s self-reliance and the global success of the smartphone industry,” says Ravi Kunwar, Head of India and APAC, HMD Global.
4. “In the midst of global concern, India shines as a powerful engine of growth. However, reaching our ambitious goal of $30 trillion by 2047 will require more than just relying on domestic consumption. Throughout history, thriving economies have built their castles on a positive balance of payments and export capacity, and each key sector has served as a brick in the wall. Today, one such industry with undeniable potential is gaming. Think of the four largest economies in the world – their gaming industry is strong and drives innovation and creativity. As we approach the upcoming budget, it is very important to prioritize and support this emerging sector. Customs credit books for export-oriented gaming companies are not just a handout; it means a strategic investment in high-skilled jobs, GDP growth and building global influence,” says Gaurav Agarwal, founder of Gamezop.
” We also support the expansion of PM-WANI based public Wi-Fi hotspots and demand exemptions from duties and fees. Budgetary support for the Satcom industry and incentives for local mobile components are in line with our vision of a digitally empowered India. We hope that these measures, if incorporated, will accelerate the industry growth and are fully aligned with the government’s priorities and the recent collaboration between India and the US in cutting-edge technology,” says TV Ramachandran, Director, Broadband India Forum (BIF).
