What does technology sector want from interim budget 2024?

The industry expects more focus on deep tech, cybersecurity and digitisation

CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: The technology sector has high hopes from the interim budget which they feel can focus more on cybersecurity and digitisation and bring in similar schemes such as the PLI (production-linked incentive) in the technology industry to drive growth in the sector. The industry also expects more focus on deep tech and wants more incentives for companies setting up data centres in the country.

“We expect to see a significant increase in allocation for cybersecurity, with strategic implementation through Public Private Partnerships (PPP) models. We confidently anticipate increased attention to enhancing cybersecurity infrastructure and capabilities. Additionally, incentives for Indian companies setting up data centers, particularly with the surge in GCC hubs in India, are crucial to propel the growth of the country under the 'Make in India' initiative. These initiatives will contribute significantly to the growth of the IT industry, aligning with the government's vision for a digitally empowered and secure nation. We also expect the government to invest in skilling and reskilling programmes aligned with industry needs. It is equally crucial to equip the workforce with the skills necessary to thrive in the evolving IT landscape,” observed Pinkesh Kotecha, MD and chairman, Ishan Technologies.

An increased focus on digitisation is expected as per a few of the industry stakeholders. “Focusing on digitisation is the need of the hour in the IT industry. We are witnessing a runaway increase in labor costs, and this affects the IT industry. Keeping the interest intact among smaller companies, the government should come up with specific schemes related to the IT sector. This is similar to measures like the PLI scheme for the manufacturing sector,” remarked Archana Srinivasan, chief financial officer at iOPEX Technologies.

Many technology industry experts feel that there needs to be an increased focus on deep tech companies in the budget. According to them, deep tech enterprises are often focused on solving real-world complexities through advanced technologies and there is high risk associated with such companies. Unlike other startups, they require larger investments given that the R&D costs are significantly higher. Besides, such companies have a longer gestation period. Support on that aspect is expected from the industry.

“With the growing prominence and implementation of deep tech across various industries, we expect increased investment in this space in the forthcoming budget to further enhance R&D mechanisms. Increased investment will also encourage entrepreneurs to explore new ideas and open up possibilities for innovation in mainstream industries. In order to realize the vision of transforming the upcoming years in 2020s into ‘Techade’ (tech decade), we expect to see initiatives that will enhance collaboration between the industry, regulator and academia,” said Avi Dahiya, founder and CEO of Twyn.

As per Dahiya, the growth of the sector has also led to an increased demand for tech talent in the country. “The upcoming budget should focus on increased investments in skill development of the youth in the technology sector. India is well poised to become the world’s technology and innovation hub in the coming decades, and this can only be done by strengthening and realizing the full potential of deep tech,” said Dahiya.