Union Budget Session 2024-25 - IT Industry voiced opinion on Reforms

Union Budget 2024 is finally out. There were several expectations from this budget as it is a full-fledged budget announced by the re-elected NDA-led government. All eyes were set on our Finance Minister, Nirmala Sitharaman. She even created a record by presenting the 7th consecutive budget in a row.

Some of the key announcements in this Union budget 2024-25 are the upskilling of youth and creating more job opportunities, changes in income tax slab, new announcements for the development of infrastructure, Simplification of rules to promote the influx of FDIs, collateral-free term loans for MSMEs to purchase machinery, Mudra loan limit increased from 10 lakh to 20 lakh, and more.

DQ Channels gathered insights from the technology industry on how they react to this budget 2024 and what's their analysis of this budget session.

Sanjay Agarwal, Head presales, and CTO at Hitachi Vantara India and SAARC, and Chair of SNIA, shared - 

The government's focus and plans to foster a robust manufacturing ecosystem in India is reflected in the interim budget presented. The budget's emphasis on digital infrastructure, skilling, and industrial parks aligns perfectly with our strategy of a digitally transformed and globally competitive manufacturing sector.  We are committed to supporting India's industrial growth journey by providing cutting-edge solutions that enhance operational efficiency, data-driven decision-making, and supply chain resilience. Hitachi Vantara's expertise in IT infrastructure, data management, and industrial automation is uniquely positioned to help manufacturers capitalize on these opportunities and contribute to India's economic prosperity.

Deepak Visweswaraiah, VP, platform engineering and site MD, Pegasystems

With an emphasis on welfare for the youth, women, and farmers reflecting a holistic approach to societal progress, this budget isn't just about numbers, it’s about people and their potential that sets the stage for a very positive development.

Designed to drive productivity and build resilience in inclusive human resource development, social justice, and advancements in innovation, next-generation reforms, and R&D among other key economic pillars, the budget does lay a robust foundation for India's sustainable growth and development. Coupled with heavy investments in public digital infrastructure with private players, it has aimed to ensure a brighter future for all segments of society.

The new ₹3 lakh crore scheme and ₹10 lakh loans for higher education, along with plans to skill 20 lakh young Indians and provide internships to one crore youth, highlight India's dedication to talent development and diversity. This budgetary initiative is set to put India on the global map as a leader in youth skill development and workforce excellence, creating an excellent pathway to Vision 2047.

Govind Rammurthy, CEO and Managing Director of eScan

The Union Budget 2024-25 reflects the Government's strong commitment to fostering economic growth, with a clear focus on infrastructure development, boosting consumption, and promoting domestic manufacturing.
 
Key initiatives include significant capital expenditure increases, incentives for skilling and employment, and enhanced support for MSMEs. The budget also emphasizes women's empowerment, with new schemes for housing and entrepreneurship, and aims to drive technological advancements through R&D incentives for emerging technologies like AI and the Internet of Things (IoT).
 
These measures, along with efforts to promote 'Made-in-India' (MII) technologies in both the private sector and PSUs, are expected to significantly bolster the country's economic trajectory and technological prowess, especially in the critical areas of Cybersecurity and Artificial Intelligence.

Subramaniam Thiruppathi, Director of Sales for India and Sub-Continent, Zebra Technologies-

“In the era of next-generation technologies such as AI, ML, robotics, and automation, the initiatives announced in the Union Budget 2024-25 are pivotal for preparing India's talent pool to drive our economy towards the USD 5 trillion goal. With an allocation of ₹2 lakh crore for employment-linked skilling, incentives for creating 4 crore jobs in the manufacturing sector, and the introduction of the Model Skill Loan Scheme, our youth will have unprecedented opportunities for growth. 
 
Additionally, the provision of internships and direct benefit transfers will ensure our workforce is skilled and financially supported. These comprehensive measures will build a robust, future-ready talent pool capable of spearheading India's technological and economic advancement.

Sunil Sharma, Vice President-Sales, Sophos India & SAARC-

“One of the biggest challenges that organizations face from a cybersecurity perspective is skilling of resources. It is reassuring to see the Government’s commitment to developing a skilled workforce with a provision of Rs 1.48 lakh crore being made for education, employment, and skilling. With this, we are confident that we will be able to create a pool of talented resources that can address India’s growing cybersecurity challenges. 
 
At the same time, the Union Budget 2024 emphasized stepping up of adoption of technology towards digitalization of the economy. Having the right talent, to be able to support this vision will be critical to enabling the Government to achieve its goal of ViksitBharat @2047.
 
Additionally, the Government has also taken a positive step towards increasing the presence of women in the workforce. Through their various initiatives, we are hopeful of seeing a reimagined industry, one driven by diversity and inclusion.” 

Mandeep Arora, MD & Co-founder, UBON - 

We welcome the Government's bold steps in Budget 2024 aimed at bolstering MSMEs and the manufacturing sector. The decision to increase Mudra loan limits to ₹20 lakh for previous borrowers is a significant stride towards fostering entrepreneurial growth and economic resilience. This move, along with credit guarantee schemes, term loans for machinery purchases, and a technology support package for MSMEs, underscores their commitment to catalyzing industry expansion and modernization. 

However, while these initiatives are commendable, we believe there's a missed opportunity in not addressing the urgent need for reducing bureaucratic hurdles and providing more direct financial incentives for sustainable and eco-friendly technologies. Moreover, integrating advanced technology systems for the Insolvency and Bankruptcy Code (IBC) and SIDBI's plan to open 24 new branches for MSME clusters are crucial steps toward enhancing operational efficiency and financial inclusivity.

Additionally, the provision of financial support for higher education loans up to ₹10 lakhs in domestic institutions reflects the Government's commitment to nurturing skilled manpower, essential for driving innovation and competitiveness in the global market. The announcement to reduce BCD on mobile chargers by 15% is particularly encouraging and will spur domestic manufacturing, benefiting both consumers and manufacturers.

Looking ahead, we urge for continued focus on policies that streamline regulatory processes and incentivize R&D investments, pivotal for positioning India as a global leader in manufacturing and technology. Together, these efforts will ensure a robust MSME ecosystem and propel the manufacturing sector towards sustainable growth and global competitiveness.

Lalit Arora, Co-founder, Vingajoy -

The Government's decisive moves in Budget 2024 to empower MSMEs and the manufacturing sector. Increasing Mudra loan limits to ₹20 lakh for past borrowers marks a bold stride towards fostering entrepreneurial dynamism and economic resilience. These measures, coupled with credit guarantee schemes, machinery purchase loans, and a technology support package for MSMEs, underscore a strong commitment to catalyzing industry expansion and modernization.

The provision of financial aid for higher education loans up to ₹10 lakhs at domestic institutions demonstrates the Government's dedication to nurturing skilled talent crucial for driving innovation and global competitiveness. Additionally, the decision to cut BCD on mobile chargers by 15% is particularly promising, poised to stimulate domestic manufacturing and benefit consumers and producers alike. While these initiatives deserve praise, there remains an opportunity to address urgent needs such as reducing bureaucratic red tape and enhancing direct financial incentives for sustainable technologies. Integrating advanced technology into the Insolvency and Bankruptcy Code (IBC) and expanding SIDBI's footprint with 24 new branches for MSME clusters are crucial for boosting operational efficiency and financial inclusivity.

Looking forward, sustained efforts are needed to streamline regulatory frameworks and incentivize R&D investments to solidify India's position as a global manufacturing and technology leader. These actions will fortify the MSME ecosystem and propel the manufacturing sector towards sustainable growth and heightened global competitiveness.

Durgesh Pandey, CFO, Web Werks – Iron Mountain Data Centers -

"We welcome the Union Budget 2024-25, which highlights the continued strong push towards digitization across sectors and infrastructure development. This will further provide a fillip to the data center industry, as digitization is the backbone for the growth of this sector. One of the key components is power for the data center industry, where renewable energy will prove to be a game-changer.

The government's continued focus on energy transition to renewable sources is evident from the expansion of the list of exempted capital goods for the solar sector and initiatives for pumped storage to improve reliability and cost-effectiveness. Additionally, the full exemption of certain rare earth minerals used for making high-end equipment and batteries for data centers from customs duty is a significant move. This budget reflects the government's vision to drive technological advancements and digital inclusion across the nation.

At Web Werks - Iron Mountain Data Centers, we are excited about the potential for growth and innovation that these initiatives will unlock, and we remain dedicated to supporting India's journey towards a robust digital future."

Conclusion

The Union Budget 2024-25 showcases the government's focus on promoting economic growth and technological advancement. Key measures, such as increased capital expenditure, incentives for skilling and employment, support for MSMEs, and initiatives for women’s empowerment, underscore the government's commitment to infrastructure development, domestic manufacturing, and digital transformation.

Opinions from the industry leaders highlight the positive impact of these measures on various sectors. The focus on digital infrastructure, skilling, and manufacturing aligns with strategies for a digitally transformed and globally competitive economy. However, there are calls for further efforts to reduce hurdles and provide more direct incentives for sustainable technologies.

Overall, the budget is seen as a step towards a strong economic future, driven by innovation, inclusivity, and sustainability. Continued focus on regulatory streamlining and R&D investments will be essential for maintaining this rate and positioning India as a global leader in manufacturing and technology.

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