Government introduces Rs.1 lakh cr fund for tech-savvy youth in Tech Budget 2024, providing 50-year interest-free loans.
In her interim Budget 2024 speech to Parliament, Finance Minister Nirmala Sitharaman revealed a major initiative for the younger generation in the technology sector. Highlighting the promising future for tech-savvy individuals, Sitharaman declared the creation of a fund worth one lakh crore rupees, along with interest-free loans for 50 years. This fund aims to support long-term financing or refinancing, providing extended repayment periods with minimal interest rates. The main goal is to encourage research and innovation in the private sector, especially in emerging areas.
“We welcome the government’s initiative to set up a ₹100 million fund to foster technological innovation among our youth. This visionary step of providing long-term interest-free funding is a game-changer, and the fintech sector alone could reach US$1 trillion by 2030. Especially in digital payments, this means many more young entrepreneurs, who want Innovations especially in the hardware terminal space to enter the industry and can transform payment solutions across India. This fund is not just an investment in technology, it is an investment in India’s innovative spirit and global leadership in fintech.”, Jose Thattil, CEO, PhiCommerce.
Historical development: from slogans to innovation
Sitharaman emphasized the need for synergy between the country’s youth and technology, and emphasized the importance of strategic programs. Referring to India’s historical slogans, Sitharaman stated, “Prime Minister Shastri advocated ‘Jai Jawan Jai Kisan’ and Prime Minister Vajpayee expanded it to ‘Jai Jawan Jai Kisan Jai Vigyan’. PM Modi has now expanded it to ‘Jai Jawan Jai Kisan Jai Vigyan and Jai Anusandhania” recognizing that innovation is the foundation of development.”
Recognizing the transformative impact of new age technologies and information on lives and businesses, Sitharaman established his role in creating economic opportunities and providing high-quality services at affordable prices even to those at the bottom of the socio-economic pyramid. He emphasized that India has the opportunity to offer global solutions through the innovation and entrepreneurship of its citizens.
Green energy initiatives for a sustainable future
As a significant step towards green energy initiatives, the finance minister outlined measures to fulfill the commitment to reach “netno” by 2070. The viability gap funding will be continued to utilize the offshore wind power potential, starting with a capacity of one gigawatt. . In addition, there are plans to establish 100 million tons of coal gasification and liquefaction capacity by 2030 to reduce the import of natural gas, methanol and ammonia. In addition, phased mandatory blending of Compressed Biogas (CBG) with Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic use is made mandatory. Financial support is also offered for the purchase of biomass aggregation machines to support collection.
These strategic initiatives outlined by Finance Minister Nirmala Sitharaman highlight the government’s commitment to promoting technological innovation, sustainability and economic growth.
