Recently the Finance Minister of India Smt. Nirmala Sitharaman presented the full Union budget for the financial year 2024-25. The Interim budget announced in the month of February of the same year was just a proxy budget until the new government was formed. The focus of the budget remained on employment, productivity, empowering the middle class, and leveraging technology.
While the new budget has received multiple reactions, with some experts entitling it as a revolutionary budget for the Indian economy, and others criticizing it for its narrow approach. Here we will keep that lens aside and decode what the new budget contains for the Indian IT and Telecom sector.
This year, there has been a budgetary allocation of ₹21936.9 crores to the Ministry of Electronics and Information Technology. Last year, the amount allotted for the same was ₹16,549 crores. This is roughly 132.57% of the previous year’s budgetary allocation for the department. In the budget presentation, the Finance Minister talked about empowering start-ups and new-age tech companies to build a sustainable future.
One of the key highlights for the tech sector in the budget is the reduction of import duties on smartphones and mobile accessories to 15%, which can eventually bring down mobile prices in the country. The FM also mentioned the allocation of ₹1,000 Crores to boost the space technology of India.
Furthermore, the budget aims to set up a Digital Public Infrastructure (DPI) to improve the service sector and integrated platform for an Inter-Block chain Communication Protocol (IBC) ecosystem to facilitate outcomes under the Insolvency and Bankruptcy Code. There is a focus on integrating technology in different sectors to foster growth and productivity in essential areas.
Several industrialists and tech experts displayed their satisfaction with the budget’s inclusive approach and its focus on innovation and digitization of the country. The center’s focus on training the workforce to leverage AI-based solutions can be a revolutionary step in transforming the commerce sector. The budget’s priorities towards innovation and research in the tech sector, with an emphasis on AI development can appear as a significant threshold towards a developed Indian economy.
There are myriad opinions and suggestions on the Union Budget 2024-25, which depends on personal expectations and the perspective of the societal groups. So far, based on the analysis, the future of the IT sector in India seems stimulating. If the budget implementation goes right, this financial year could set up a robust foundation for the technology sector of our country.