The Interim Budget 2024, presented by Union Finance Minister Nirmala Sitharaman, elicited mostly positive reactions from the technology industry with CEOs and executives welcoming the increased focus on digitalisation, although some also felt it fell short on addressing a few issues.
In her 58-minute Budget speech, the shortest so far, Finance Minister Sitharaman highlighted India’s booming economy and announced an 11.1% hike in the FY25 capital expenditure outlay to Rs 11.11 lakh crore, at 3.4% of GDP, to continue the public investment momentum. However, the interim budget steered clear of major tax changes and policy announcements.
Sat Kumar Tomar, founder & CEO of Satyukt Analytics, an agritech startup, said the budget resonated positively with the agriculture sector through its focus on sustainable farming aided by technology.
Upskilling youth
Meanwhile, Pinkesh Kotecha, MD of Ishan Technologies, lauded the budget’s emphasis on empowering youth through upskilling initiatives which he felt addressed the IT sector’s need for skilled talent. “The establishment of additional IITs, IIITs, and IIMs is a promising stride toward creating a skilled talent pool in the IT sector, addressing a critical need in the industry especially in the era of Artificial Intelligence.” he said.
Kotecha also reiterated the need for budget allocation and policies to strengthen cybersecurity as a crucial area for India’s digital future.
Focus on sustainability
Electric two-wheeler maker Revamp Moto’s CEO Pritesh Mahajan termed the budget a “big step towards sustainability” with its sharp focus on developing the EV ecosystem through production assistance and charging infra funding. “In addition to being in line with our environmental objectives, the focus on promoting e-buses for public transport and the implementation of a bio-manufacturing programme open doors for creative, sustainable alternatives. Furthermore, a comprehensive strategy is shown by the actions taken to harness offshore wind energy and encourage the gradual integration of biogas into natural gas,” he analysed.
A vision for long-term growth
Kaustubh Gupta, Co-Head Fixed Income at Aditya Birla Sun Life AMC Ltd., felt the budget highlighted the government’s confidence in uplifting India’s long-term growth in a non-inflationary manner. “The bedrock of this budget comes from the conservative numbers from a government that’s confident of uplifting India’s long-term growth in a non-inflationary way. It has not given in to the populism despite the upcoming election season. We expect the benchmark yield to trend towards 6.5%”
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