Finance Minister Nirmala Sitharaman, while presenting the final Union Budget for FY24, highlighted various focus areas of technology and digitisation and specified funds and reiterated the packages introduced in the Interim Budget.
Here’s what various technology leaders had to say about the announcements made in Prime Minister Narendra Modi’s new coalition government’s first budget:
Greyhound Research
Sanchit Vir Gogia, Chief Analyst, Founder and CEO
“India’s technology sector is on the brink of major change and will require a concerted government effort to realise its full potential in the coming years. The proposed Budget has done a great job of striking a balance between focus on research and innovation and priority industries such as e-commerce, agriculture and space technology. But more needs to be done to provide the instruments, funding and other support systems to nurture India’s software ecosystem and, with it, the skills needed to thrive in India and for the world.
Another area that needs attention and focus is to help startups get listed in India instead of on foreign exchanges. This can be achieved by structuring policies that encourage and provide clear benefits to listing on Indian stock exchanges.
“For India to truly compete on a global platform, there will also need to be greater focus on artificial intelligence and other future-proof technologies. Given the recent focus on semiconductors and allied industries, I was keen to hear more on this. Other things that went well in the budget include the reduction in customs duties on mobile components, IT-based systems for asset recording and the focus on technology platforms for IBC.”
Indus Face
Ashish Tandon, Founder and CEO
“Indusface applauds the government for recognising the critical role of technology and innovation in driving economic growth. The budget’s focus on developing digital public infrastructure applications across various sectors including credit, e-commerce, education, health, law and justice, logistics, SME service delivery and urban governance demonstrates a forward-thinking approach. However, while these initiatives are promising, we believe that greater focus on cyber security is essential. As digital transformation accelerates, robust cyber security measures are essential to protect the country’s digital infrastructure. We urge the government to allocate dedicated resources and policies to strengthen the cyber security framework to ensure technological advancements are secure and resilient.”
noise
Amit Khatri, Co-Founder
“Youth and women participation in the workforce holds key to India’s success. To this end, focus on extensive training and skill development initiatives demonstrates a clear commitment towards increasing employability and productivity. By linking freshers with job creation in manufacturing and providing EPFO incentives, the government is paving the way for a strong manufacturing ecosystem.”
Setting up an e-commerce export hub through a public-private partnership model is another important step by the government that will significantly enhance the ability of MSMEs and traditional artisans to compete internationally. This will open up opportunities for Indian businesses to expand their footprint globally, improve ease of doing business and provide access to new markets.
Finally, I feel that the repeal of angel tax will definitely boost funding for the startup ecosystem, thus encouraging innovation and growth. This move, coupled with job creation incentives in manufacturing and support for small and medium enterprises, will not only spur valuable employment opportunities for millions of youth but also ensure economic resilience.”
BenQ
Rajeev Singh, Managing Director, India and South Asia
“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman has adopted a strategic approach to drive economic growth while strengthening India’s technology environment. The planned upgradation of 1,000 industrial training institutes through a hub-and-spoke model and alignment of course content with industry needs reflects a proactive strategy to address the skill gap in the workforce and prepare students for the evolving job market. The focus on skill development and education bodes well for not only the emerging workforce but also interactive technology companies.”
By integrating interactive learning tools into these upgraded educational institutions, technology companies can help create an engaging and effective learning environment that will foster skill acquisition and prepare students for future challenges. This alignment between government efforts and private sector capabilities will be crucial in driving education reforms in India.”
Bonn V Aero
CEO Satyabrata Satapathy
“The Budget 2024-25 marks a major step forward for India’s deep tech sector. By increasing allocations for research and development and incentivizing innovation, the government has demonstrated its commitment to foster a strong ecosystem for emerging technologies. The Budget not only recognizes the critical role deep tech plays in driving economic growth, but also creates the platform for start-ups like BonV Aero to push the boundaries of innovation in areas such as drone technology and smart manufacturing. We are particularly encouraged by the support given to infrastructure development and skill upgradation, which are essential to scale our operations and remain competitive on the global stage. Collectively, these measures will help accelerate our mission to deliver cutting-edge solutions and contribute to India’s technological advancement.”
Tesolve
Srinivasan Chinamili, Co-Founder and CEO
“This year’s budget is future-oriented and aims to make India self-reliant and equip the youth with employable skills. The government has announced various schemes to collaborate with industry to customise courses while fostering strong industry-academia partnership to enhance skill development. Schemes on entry level recruitment and internships will also help new and potential employees. With the government’s support, this initiative will further boost emerging sectors like semiconductors and effectively address the skill gap.”
“Furthermore, our investments in research, including funding for the Anusandhan National Research Foundation, will significantly accelerate advances in cutting-edge technology. Through these steady and strategic investments, we are paving the way for India’s emergence as a global superpower.”
Avali Solution
Srividya Kannan, Founder and CEO
“The announcement of 10 million young people getting internships with top 500 companies aims to provide them with real-world experience and corporate exposure that is crucial to developing a skilled workforce. As emerging technologies such as generative AI transform industries, this initiative will help bridge the gap between job requirements and skills.”
The Finance Minister also stressed the need for increased adoption of technology to enhance ease of doing business, improve data and statistical recording and enable informed decision-making. Emphasis on technology as an enabler will strengthen the capacity of our workforce and make them more adaptable to rapid global market changes.
“The government aims to enhance the productive capacity of the economy by prioritizing skilling and technology adoption. The vision of a digitalised India aims to take our growth story forward and ensure that our workforce remains competitive and meets the challenges of the future.”
Colliers India
Arnab Ghosh, Managing Director, Corporate Fitout
“Digitisation of city land records and other digital reforms are a step in the right direction. It will promote transparency in real estate-related transactions and approvals, which will in turn attract foreign direct investment.”
Axio
Akshay Sarma, Chief Financial Officer
“The Budget announcements mark India’s continuing efforts to realise its economic dream of reaching a $5 trillion economy by 2024-25. Addressing key challenges in the startup ecosystem, abolishing angel tax for all investors will boost startups and attract diversified investments. Simplifying FDI and facilitating Indian Rupee for international investments will enhance India’s global economic standing. These measures will improve the business environment, foster innovation and enhance India’s global financial standing. Continued focus on sector-specific challenges in the NBFC space and digital economy is essential for inclusive economic development and financial inclusion,” he said.
H Tech
CP Khandelwal, Joint Managing Director
“We congratulate the government on the Union Budget and are heartened by the strong support for MSMEs and manufacturing. The Credit Guarantee Scheme of up to Rs 1,000 crore for MSMEs in manufacturing is a landmark initiative. This initiative will spur innovation and growth, provide critical support to domestic businesses and enhance India’s position in global manufacturing.”
“The government’s decision to reduce basic customs duty on mobile phones, PCBs and chargers to 15% marks a pivotal moment for India’s technology sector. This strategic move acknowledges the significant maturation of India’s mobile industry in recent years and aims to attract global chains to India and enable large-scale manufacturing operations.”
Q1 Technologies
Krishna Bansal, MD & CEO
“As India steers its development path, we appreciate the forward-thinking approach reflected in the Union Budget 2024. The Budget’s focus on digital infrastructure and technological innovation is perfectly aligned with Q1 Tech’s mission of providing secure and efficient IT solutions and services. The focus on cybersecurity and digital literacy will enable businesses to operate more efficiently, thus boosting economic growth.”
We are optimistic about the initiatives undertaken and are committed to resolving immediate economic challenges while building a solid foundation for long-term growth. Leveraging the power of IT and digitalization, we aim to make the most of these opportunities and propel the country towards a technologically advanced economic environment.”
Future X
Rutin Kumar, Vice President, South Asia
“Over the past decade, technology has played a key role in increasing productivity and reducing economic disparities by improving access to market resources, education, health and services. The government aims to further strengthen this by accelerating the adoption of digital technologies.”
“To improve data governance, the Budget highlights the use of various sector databases built under the Digital India Mission and backed by advanced technology tools. This approach is critical for critical sectors such as BFSI (banking, financial services and insurance), e-governance, retail, telecom and healthcare. Robust data protection and compliance with evolving regulations will enable the secure and efficient implementation of digital infrastructure across these sectors.”
Also read: Budget 2024 update: NDA allies Nitish Kumar, Chandrababu Naidu happy with grants to Bihar, Andhra
