Experts said to catalyze growth in IT sector, the Budget 2024 should strategically prioritize Enhanced Digital Infrastructure, Cybersecurity, and Skill Development.
Budget 2024 Latest News: As only a few days are left for Union Finance Minister Nirmala Sitharaman to present Budget 2024 on February 1, the IT and Software sector expects the Centre to strengthen cybersecurity and ensure data privacy. Experts said the Centre in Budget 2024 should focus on digital infrastructure development, skilling and talent development, support for the start-up ecosystem, and substantial investments in research and development.
Focus on digital infrastructure development
Speaking to India.com, Sudhir Kothari, MD & CEO of Embee Software PVT LTD, said “As we approach Budget 2024, the Software/IT sector in India anticipates robust growth with a projected increase in IT spending. The sector’s resilience, strategic planning, and government initiatives are propelling this positive outlook. With India’s IT spending expected to reach $100 billion by 2025, growing at an annual rate of 8-10%, the focus on digital transformation and a digital-first approach is evident.”
He added that the key areas of emphasis include digital infrastructure development, skilling and talent development, support for the start-up ecosystem, and substantial investments in research and development. Strengthening cybersecurity, ensuring data privacy, and enhancing the ease of doing business are integral components of the budget expectations, he further added.
Bridging The Digital Divide
Abhishek Vyas, CEO of Rich Kardz, said, “As we look forward to the 2024 budget, the tech industry is optimistic about incentives supporting startups engaged in digital initiatives, cybersecurity, and bridging the digital divide.”
Amit Relan, Co-Founder and CEO, mFilterIt, said, “Last year’s Union Budget had a significant mention of the advancements in technology and fostering the digital economy. For the upcoming budget announcement, we are expecting a significant share of focus on critical issues concerning data protection, cybersecurity, and digital infrastructure.”
He said with the introduction of the data protection bill, he is expecting to see stride movements in the regulation of data privacy aligning with global standards, a cohesive policy framework to protect user privacy and also stimulate innovation in the digital economy.
“Alongside privacy and protection, we expect to see some wave movement around emerging technologies like AI and the nation’s take on leveraging its power to empower further digital advancements,” he said.
Significance of ‘Make in India
Yuvraj Shidhaye, Founder and Director, TreadBinary, said, “Anticipating the Union Budget 2024-25’s stance on the technology sector, I hold high hopes for a progressive approach that underscores the significance of ‘Make in India.’”
He added that the emphasis on streamlining Advanced Pricing Agreements (APAs) and Mutual Agreement Procedures (MAPs) is pivotal, offering clarity that not only benefits multinational tech entities but also fosters an environment conducive to innovation and collaboration, aligning with the ‘Make in India’ initiative.
Focus on Cybersecurity
Sahil Jain, Co-Founder, Techno Companion, said the IT sector plays a pivotal role in driving India’s exports and employment landscape. To catalyze its growth, the budget for 2024-25 should strategically prioritize Enhanced Digital Infrastructure, Cybersecurity, and Skill Development as this approach not only augments India’s IT exports but also cultivates a conducive environment for the creation of new employment opportunities.
Amit Prasad, Founder and CEO, SatNav, said the IT sector foresees the 2024 Union Budget emphasizing digital infrastructure investments and providing incentives for research, skill enhancement, and nurturing innovation hubs.
“With IT Services business taking a hit due to varying market conditions and the imminent impact of Artificial Intelligence on low end programming, hiring has been significantly down for Software Engineers this year, unfortunately this is expected to continue. For almost 3 decades the Indian education system has been focused on producing Engineers who go and take up jobs in the IT industry. The Government should proactively promote incentives for Educational institutions to diversify their programs and for IT Product companies who can fill the imminent gap that will arise,” he said.