Discover how Budget 2024 is shaping the future of technology with pivotal developments and their impact on innovation and growth.
The Union Budget 2024 has been lauded for its inclusive growth initiatives and its dedication to fostering technological innovation. Esteemed leaders from Microsoft, Salesforce, Deloitte, and other prominent entities have expressed their enthusiasm for the advancements propelling the tech industry. Here’s a compilation of their insights regarding the recent budget pronouncements.
Union Finance Minister Nirmala Sitharaman, on Tuesday, July 23, unveiled the Union Budget 2024-25, which prioritizes employment, skill development, MSMEs, and the empowerment of the middle class. The technology sector received noteworthy attention, with measures designed to bolster the growth and sustainability of startups. A particularly impactful announcement was the reduction of customs duty on mobile phones and related accessories. The Basic Customs Duty (BCD) has been decreased to 15 percent for mobile phones, printed circuit board assemblies, and mobile chargers.
Furthermore, Sitharaman announced the establishment of a venture capital fund amounting to Rs 1,000 crore, aimed at augmenting India’s space technology sector. The government envisions a fivefold expansion of the space economy within the next decade. This initiative is anticipated to significantly benefit Indian startups and enterprises within the space technology domain.
Following the Budget 2024 announcement, Indian tech companies and industry leaders have hailed it as a landmark moment, commending the newly introduced measures. Here’s what these tech luminaries had to say about the Union Budget 2024.
A Major Boost for Technological Innovation
Puneet Chandok, President of Microsoft India & South Asia, highlighted the budget’s emphasis on priorities such as employment, skill development, innovation, research and development, productivity, and resilience. Chandok remarked, “The Union Budget’s focus on technological innovation and digitization positions India on a rapid path to becoming an ‘AI-first nation,’ creating new opportunities for collective and inclusive progress across commerce and communities. Leveraging a digitized economy and an AI-ready workforce aligns perfectly with the budget’s priorities concerning employment & skill development, innovation, research & development, and productivity & resilience in agriculture.”
Chandok further underscored India’s leadership in AI skill penetration and talent concentration, noting the impressive adoption of new technologies by human capital, businesses, and public sector organizations. He reaffirmed Microsoft’s commitment to initiatives in skilling, training, and development.
A Balanced Approach
Arundhati Bhattacharya, Chairperson & CEO of Salesforce India, commended the Budget 2024-25 for its balanced focus on women, youth, and job creation, emphasizing the sustained efforts to create opportunities for all. Bhattacharya stated, “As the Honourable Finance Minister mentioned, India’s economic growth continues to be a beacon of exception amidst global uncertainties and is poised to remain so in the forthcoming years. Initiatives targeting skill development, enhancing women’s workforce participation, promoting technology use in agriculture, and supporting SMEs, which are the largest employment generators, are particularly noteworthy. These measures provide the essential impetus for driving India’s economic growth.”
Bhattacharya emphasized that the budget is a step in the right direction, especially in terms of job creation, which is critically needed. She added, “India has established itself as a global hub for technology talent and has become a preferred destination for global capacity centers (GCCs). Steps to streamline operations and ensure ease of doing business will drive innovation from India.”
Realizing the Vision of Development
Siddartha Tipnis, Partner & Technology Sector Leader at Deloitte India, believes that India’s growth narrative of ‘Amrit Kaal’ and the vision of becoming a developed nation by 2047 are centered on its demographic dividend. Tipnis noted, “This year’s budget announcement of a Rs two trillion investment in the nation’s human capital is of significant importance. The technology sector, in particular, is expected to benefit from the infusion of fresh talent through programs such as skilling loans, educational loans, internships, and the increased participation of women in the workforce.”
Tipnis also appreciated the policy continuity and the government’s ongoing focus on digital public infrastructure. The sustained fiscal support for current and upcoming DPI programs in areas such as agriculture, credit, e-commerce, education, and health is expected to continue.
Greater Impetus for the Startup Ecosystem
Varun Gupta, Co-founder of BOULT, hailed the budget as a major victory for the Indian startup ecosystem, expressing confidence that it will attract more investment, drive innovation, and boost growth. He particularly praised the removal of the angel tax, calling it beneficial for early-stage startups and indicative of the government’s support for startup funding. Gupta stated, “The new Credit Guarantee Scheme for MSMEs, coupled with the emphasis on skill development and eased FDI regulations, is a robust approach to promoting growth and enhancing global competitiveness. Additionally, the government’s focus on upskilling the youth and embracing advanced manufacturing and digital technology provides us with a competitive edge.”
The Key to India’s Success
The Budget 2024 places a strong emphasis on inclusive growth. Sitharaman highlighted initiatives aimed at growth in manufacturing, upskilling, and women empowerment. The announcement of internship opportunities for 1 crore youth in the top 500 companies has also been well-received by the tech sector.
Amit Khatri, Co-founder of Noise, emphasized the importance of youth and women’s participation in the workforce as key to India’s success. Khatri remarked, “The focus on extensive training and skill development initiatives demonstrates a clear commitment to enhancing employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. This is indeed a commendable initiative to boost local manufacturing.”
Fostering a Future-Ready Workforce
Ashish Saraf, VP and Country Director at Thales India, commented on the budget’s emphasis on skilling, research, and innovation, which complements the Viksit Bharat 2047 vision. Saraf said, “The budget’s commitment to skilling 20 lakh youth over the next five years through centrally sponsored schemes and the provision of skilling loans will pave the way for cultivating a strong and future-ready workforce. These measures will create pathways for youth to acquire essential skills, thereby enhancing employability. The proposed steps are dedicated to supporting India in nurturing a highly skilled workforce and fostering deep-tech innovations by leveraging both local and global expertise.”
This revamped Union Budget 2024 heralds a new era of technological advancement, inclusive growth, and economic prosperity for India, with the potential to position the nation as a global leader in technology and innovation.
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