Union Budget 2024: Expectations soar for technology, AI sector as India prepares for interim budget 2024-25

As the nation eagerly awaits Finance Minister Nirmala Sitharaman’s presentation of the 2024 Interim Budget in Parliament on February 1, tech industry leaders are weighing the potential to shape the economic landscape ahead of the upcoming elections. I am preparing myself for a certain announcement.

Here’s a breakdown of their perspectives:

Krishna Mohan Jha, Founder and CEO of Nine Triangles said:

As the Union Budget 2024 approaches, Digital India enablers are full of expectations from the government. This fast-growing industry is a major employer across the creative, technology, media and data domains and requires a clearly defined industry identity and explicit government recognition.

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Currently, the landscape of digital media enablers is somewhat disorganized, often sharing identity with sectors such as technology, IT, ITES, and advertising. The emergence of a clear and recognized identity for the digital industry is essential for its overall development and integration into the broader economic framework. A strategic focus within the federal budget is essential to moving this area forward.

Measures such as emergency financing facilities, the creation of Special Economic Zones (SEZs), targeted incentives, and comprehensive policy statements are critical to the expansion and stability of the industry. A more tailored approach by the government will not only foster innovation but also support sustainable growth, allowing India to increase its global share in digital distribution. ”

Yuvraj Shidhaye, Founder and Director, TreadBinary

Anticipating the Union Budget 2024-25’s stance on the technology sector, I have high hopes for a progressive approach that emphasizes the importance of ‘Make in India’. The focus on streamlining Advanced Pricing Agreements (APA) and Mutual Agreement Procedures (MAP) is critical and will not only provide clarity that will benefit multinational technology companies, but will also enable ‘Make in India’ Work with initiatives to foster an environment that fosters innovation and collaboration.

Within this context, the tax structure surrounding royalty payments for leveraging technological capabilities becomes paramount. Strong policies in this sector will not only facilitate technology transfer but also ensure fair taxation, give impetus to domestic and international investment in our technology sector and strengthen the ‘Make in India’ vision. I will do it.

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The Union Budget has the potential to go beyond the fiscal framework. It serves as a beacon to encourage domestic innovation and strengthen technological prospects. A balanced budget will not only foster innovation but also contribute significantly to the ‘Make in India’ growth trajectory and cement India’s position as a global technology hub.

Sumit, CEO and Co-Founder of DashLoc

As we look forward to the 2024 financial budget, DashLoc envisions a budget that supports startups and fosters artificial intelligence (AI) research and innovation for resource generation and employment opportunities.

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We look forward to efforts to foster customized upskilling programs in AI, and look forward to partnerships with educational institutions and industry to ensure a steady pipeline of skilled professionals in the technology field.

In India’s retail-dominated market, the government’s ONDC platform is set to transform purchasing patterns over the next five years. The 2024 Budget is therefore also an opportunity to strengthen innovation and community-centric solutions, reinforcing the role of startups like us in reimagining hyperlocal discovery with an emphasis on personalization and precision. Masu.

Ajay Bhutani, Founder and CEO, Barcode India

Looking ahead to the Union Budget 2024, we at Bar Code India (BCI) look forward to the government’s continued support for the technology sector.

In 2024, we at BCI aim to further invest in research and development initiatives to foster innovation and strengthen India’s digital infrastructure. A positive and conducive policy environment that encourages research and development across emerging software and hardware technologies such as artificial intelligence and the Internet of Things will propel India towards a technology-driven future.

Additionally, encouraging investments in domestic manufacturing and PSU digitization with made-in-India technology will strengthen and promote Indian technology companies. As we navigate the dynamic technology landscape, we believe in the government’s commitment to fostering growth in the technology sector and ultimately contributing to the country’s economic prosperity.

Krish Raminini, CEO of Fireflies Ai

As we look forward to the Union Budget 2024, my expectations for the startup ecosystem revolve around fostering innovation and harnessing the potential of artificial intelligence (AI). India’s startup industry is at a critical juncture, poised to harness the transformative power of AI in shaping the future of technology and services.

Over the next five years, AI-driven advances promise to revolutionize industries, and budgets should reflect a commitment to encouraging and supporting startups at the forefront of this wave . By encouraging investment in research and development (R&D), we can foster a surge in entrepreneurial activity and lay the foundation for breakthrough solutions that redefine global standards.

This is a great opportunity for the Indian technology ecosystem to shine on the international stage, leveraging the momentum generated by influential players like OpenAI and Microsoft. I look forward to a budget that propels our startup community into a future where AI-driven innovation is not only encouraged, but essential to our nation’s growth story. ”

Sekar Udayamurthy, Co-Founder and CEO, Jidoka Technologies

With a positive outlook for AI-based opportunities in India, the interim budget for 2024-25 should prioritize seamless integration of AI technology into manufacturing processes. This presents huge opportunities, especially in the area of ​​quality control, and governments should encourage the adoption of AI.

Providing incentives and subsidies, as well as facilitating access to funding for initiatives such as smart warehouses and workplace automation, especially by encouraging the adoption of AI and technology in this area, will have long-term implications. brings great benefits to. The government should also take steps to increase awareness about start-up schemes and single-window platforms for budding entrepreneurs.

A more favorable financing environment for high-tech start-ups is crucial, and reductions in import duties on raw materials such as steel and copper will further strengthen the success of the ‘Make in India’ initiative.

The government needs to do more to create platforms and business exchange programs that connect startups with overseas manufacturers.

Rajarshi Bhattacharyya, Co-Founder, Chairman and Managing Director, ProcessIT Global

Although major announcements may be delayed until after the 2024 general election, the next budget represents a key opportunity to lay the foundations for the country’s future economic growth.

While India’s impact on the world is undeniable as it consolidates its position as the world’s third-largest startup ecosystem, there remains untapped potential to create an even more favorable environment for entrepreneurs.

It is important to increase funding specifically for digital transformation and cybersecurity service startups. Additional incentives for research and development, robust cybersecurity measures, and technology-driven solutions are urgently needed, especially given the escalation of threats.

Strategic investment in the further development of cybersecurity technology is essential, enabling both businesses and consumers to actively contribute to the digital economy. It is clear that developing a workforce capable of dealing with evolving cyber threats is essential. The role of government is critical and needs to provide tax breaks to startups to attract and retain talent through comprehensive workforce upskilling and training programs.

Shreeranganath Kulkarni, Managing Director, InfoVision

As the InfoVision team looks forward to Budget 2024, we highlight the potential of AI to increase business efficiency by up to 10x. We call on governments to step up investment in AI and support advances in quantum computing, social digital innovation, and explainable AI (XAI).

Key to this effort is workforce upskilling and reform of data governance laws to encourage data center investment and enable broader AI/ML adoption. The integration of AI into areas such as urban planning, healthcare, and education will be critical. A collaborative governance model that ensures ethical data use is key to driving India towards her $5 trillion economy.

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