Experts share their thoughts on Budget 2024: Insights on EVs, startups, and sunrise domains from the tech sector

The tech sector has responded to Finance Minister Nirmala Sitharaman’s announcement of the interim budget for 2024. While some major announcements were made, there were also notable omissions that were important to technology leaders. Despite this, experts in the tech industry believe that the final budget after the general elections will address these priorities and provide beneficial allocations and policies for the sector as a whole. In the meantime, various tech leaders and experts have shared their reactions to the interim budget. Read on to see what they have to say.

Budget 2024 reactions

1. Bipin Preet Singh, Co-Founder and CEO, MobiKwiki, said, “We appreciate India’s thoughtful budget announcements, which are a significant step towards financial inclusion and innovation. The Rs. 1 lakh long-term interest-free loans will not only fuel innovation, but also boost access to finance and boost private sector research in emerging areas.The focus on deep-tech startups in the defense sector and the extension of tax benefits until March 2025 for startups, sovereign wealth funds and pension funds mean the government is committed to supporting growth and flexibility .Extended tax benefits demonstrate a firm commitment to creating an enabling environment for startup development and sustainable investment.Overall, the budget underscores a strategic approach to long-term economic sustainability and innovation.

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2. Manoj Nair, Director, India GDC, Fujitsu India said: “We welcome the Indian Union Budget 2024-25 announced today and commend the Government of India for delivering digitalisation, inclusive and sustainable development and enhanced capabilities and resources. Power investments at the core. As the demand for technical talent grows The government’s Skill India mission has played a key role in bridging the talent gap in the IT sector.With 1.4 million youth trained and retrained, the announcement of institutes including IITs and IIMs will help India address the AI skills gap and close the gap effectively.Furthermore, the government’s corpus of ₹100,000,000,000 with a 50-year interest-free loan will encourage the private sector to significantly increase research and innovation in the sunrise sectors.This will be a major boost to the tech-savvy youth and help the Nation strengthen its capabilities in deep technology.

3. Chakravarthi C., CEO, Quantum Energy, said: “The emphasis on green initiatives in the previous budget, with environmental sustainability among the top seven priorities, set a commendable precedent. In today’s budget, this commitment is not only sustainable, but higher, reflecting a clear understanding that environmental challenges need to be addressed urgently. We welcome the positive aspects of the interim budget but note certain expectations that have not been met. The imminent end of the FAME II subsidy program in March 2024 raised hopes for its continuation, in line with the government’s ambitious target of having 30 per cent electric cars on India’s roads in 2030. The extension would have bolstered support for the EV industry, and a significant reduction in the GST on lithium-ion batteries and cells from 18% to 5% would have lowered manufacturing costs, made EVs more competitive and increased consumer adoption. The absence of a standardized policy in the battery exchange market is also a missed opportunity. A unified policy would improve safety, streamline charging infrastructure and create a more reliable and safe environment for electric vehicle users.”

4. Kumar Gaurav, Founder and CEO of Cashaa said, “We were indeed expecting progress along the lines of the crypto regulatory framework, which has been one of the main speculations all this time. Nevertheless, the government wholeheartedly accepts technological disruptions in various sectors due to emerging technologies such as artificial intelligence, machine learning , blockchain etc. Adoption of deeptech in sectors like defense shows a positive sentiment. We understand that this is an interim budget and there is no talk of any regulatory framework or rationalization of tax or TDS structure for the crypto sector which is long overdue. However, we are optimistic about the coming months and look forward to we will soon receive encouraging actions.”

5. Alok Kashyap, Founder & CEO, Yatiken Software Solutions said, “In line with the government’s ambitious vision of technology contributing 20-25% of GDP by 2025, this forward-looking budget is a promising course for the IT sector. The allocation for electric vehicle infrastructure development is particularly noteworthy as it opens up opportunities for EV system software development, IoT integration and data analytics.1,000 crore corpus for long-term funding is another necessary boon for the IT sector to promote innovation and research.Furthermore, Skill India Mission initiatives and tax benefits for startups provide a robust the basis for competence development and the growth of entrepreneurship.