Key Tech talks in the Interim Budget 2024

In the interim budget 2024 announcement, Finance Minister Nirmala Sitharaman underscored the transformative impact of technological changes and new-age innovations for the benefit of businesses and society. Here are the key highlights.

A corpus of ₹1 lakh crore for research in tech

The FM announced the establishment of a one-lakh-crore-rupee corpus to boost research and development (R&D) in technology and other sunrise sectors, supported by a 50-year interest-free loan. This initiative aims to provide long-term financing or refinancing with low or nil interest rates, a move expected to encourage the private sector to amplify research and innovation efforts.

Calling innovation the "foundation of development", Sitharaman said, "The corpus is strategically designed to fuel long-term growth and development, promoting a robust ecosystem for research and innovation. It will empower India to showcase solutions on the global stage."

“The allocation of corpus for financing research and innovation in sunrise domains is a catalyst to support the technology companies in the private sector,” said Vishal Malhotra, Tax Leader - Technology, Media and Entertainment, Telecommunications, EY India

Push for Deeptech in defence

During her address at the presentation of the Interim Budget 2024, the Finance Minister also made an announcement regarding the launch of a new scheme aimed at enhancing deep-tech technologies for defense purposes.

In her speech while presenting the Interim Budget 2024, she spoke on the importance of technology and related changes and on the need of innovation for laying the foundation for development, as the upcoming time period is expected to be a golden era for youth.

Defense and space sectors play pivotal roles in driving technological advancements, particularly in cutting-edge initiatives. These endeavors require a robust policy framework and supportive ecosystems. The government's efforts to reduce imports of various military hardware items and involve academia and the private sector in defense research and development have generated enthusiasm among technology-intensive organisations across the country.

More money on cyber security and other tech talks

The government has announced an outlay of ₹759 crore towards cybersecurity projects, a 90% increase from the allocation of ₹400 crore ((revised estimates, RE) for FY 2023-24. The cybersecurity landscape in India continued to be a battleground in the year gone by. A Checkpoint report showed that while the APAC region led in terms of highest average number of weekly attacks, India in particular faced 15% spike in 2023. 

Overall, for FY25, the budget estimate for Meity has been increased 48.29% from ₹14,421.25 crore (RE) to ₹21,385.15 crore. The interim budget  increased budget outlay for MeitY-led production linked incentive scheme (PLI) from ₹4560 crore (RE) to ₹6200 crore for FY25. The allocation for modified programme for development of semiconductors and display manufacturing ecosystem in India has been bumped up more than 4.5x –  from ₹1,503 crore (RE) to ₹6,903 crore this year.

Budget for other major technology schemes have seen marginal increase – these include – research and development in IT and electronics (15%), electronic governance (10.5%), and promotion of electronics and IT hardware manufacturing (7%).

Speaking of the Skill India Mission, Sitharaman said that it had trained 14 million youth and reskilled and upskilled another 5.4 million youth.

She further mentioned that 1,361 mandis had been integrated into the electronic National Agriculture Market (eNAM), which had provided services to 18 million farmers. eNAM has seen a trading volume of ₹3 trillion, she added.

According to a statement by Nasscom, the Interim Budget 2024 has set the tone for a technology-oriented and knowledge-driven nation by 2047. The government’s sharp focus on DeepTech, technology-enabled development to benefit the last mile, Innovation R&D and transformational reforms to skill, reskill and upskill India’s youth reflects the country’s commitment towards inclusive and sustained development for all.