India’s Budget 2024-25: A Boost for the Technology Sector

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has placed a strong emphasis on technology as a key driver of India’s economic growth and development.

The government’s vision of a ‘Viksit Bharat’ (developed India) is inextricably linked to leveraging technology to its full potential.  The technology and automation sector is expected to perform well with rising concerns about climate and a huge government push, declining battery prices, also rising consumer awareness. Only infrastructural development and financial incentives for buyers are required for this sector to boom.

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Key Highlights for the Technology Sector

• Digital Public Infrastructure (DPI): The budget places a significant focus on expanding the applications of DPI to boost productivity, create business opportunities, and foster innovation. Areas such as credit, e-commerce, education, health, law and justice, logistics, MSMEs, service delivery, and urban governance are set to benefit from DPI-driven initiatives.  
• Research and Development: The government is committed to strengthening India’s scientific and technological capabilities. Investments in research and development, including in areas like nuclear energy and space technology, are expected to drive innovation and create new opportunities.  

• Startups and Entrepreneurship: The budget recognizes the crucial role of startups in driving economic growth and job creation. Measures to support startups, such as the proposed venture capital fund for the space technology sector, are expected to encourage entrepreneurship and foster a thriving startup ecosystem.  
• Skilling and Reskilling: The budget emphasizes the need for a skilled workforce to support the growing technology sector. Initiatives aimed at skilling and reskilling the youth will ensure that India has the talent pool necessary to compete on the global stage.  

• Infrastructure Development: Investments in digital infrastructure, including broadband connectivity and digital payments, will be crucial for the growth of the technology sector. The budget is expected to allocate funds for strengthening digital infrastructure across the country.  

Focus on Emerging Technologies

The budget also highlights the government’s focus on emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). These technologies have the potential to transform various sectors of the economy and create new business models. The government is likely to support initiatives aimed at promoting research, development, and adoption of these technologies.  

Overall Impact

The Union Budget 2024-25 is a significant step towards positioning India as a global technology hub. The focus on digital public infrastructure, research and development, startups, and skilling will create a conducive environment for the growth of the technology sector. By harnessing the power of technology, India can accelerate its journey towards becoming a developed nation.