Tech Sector reactions on Budget 2024: From EVs, startups to sunrise domains, know what experts said

Tech sector reactions on Budget 2024: Finance Minister Nirmala Sitharaman has announced the interim budget for 2024 today with several major announcements, but left out many other things that were high on the priority of the leaders in the technology space. Despite the current presentation failing to address those priorities, tech experts anticipate that the final budget after the general elections will unveil specific allocations and policies that will benefit the entire sector. Be that as it may, today, many tech leaders and experts have reacted to the interim budget 2024. Check out these reactions from the tech sector below.

Budget 2024 reactions

1. Bipin Preet Singh, Co-founder and CEO at MobiKwik said, “We appreciate the thoughtful budget announcements for India, marking a significant step towards financial inclusivity and innovation. The allocation of Rs. 1 lakh crore for long-term, interest-free loans not only fuels innovation but also promotes accessibility to funds, fostering private sector research in emerging areas. The focus on deep tech startups in the defence sector and the extension of tax benefits until March 2025 for startups, sovereign wealth, and pension funds signify a government committed to supporting growth and resilience. The prolonged tax benefits indicate a steady commitment to creating a conducive environment for startup development and sustainable investments. Overall, the budget underscores a strategic approach towards long-term economic resilience and innovation.”

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2. Manoj Nair, Head of India GDC, Fujitsu India said, “We welcome India’s Union Budget 2024-25 unveiled today and applaud the Indian Government for putting digitalization, inclusive and sustainable development, and enhanced capabilities and contribution to the generation of resources to power investments at the core. As the demand for tech talent surges, the Government’s Skill India Mission has played a pivotal role in stemming the talent gap in the IT industry. With 1.4 crore youth upskilled and reskilled the announcement of higher learning institutions including IITs and IIMs will help India address the AI skill crunch and bridge the gap effectively. Additionally, the Government’s corpus of ₹1 lakh crore with a 50-year interest-free loan will encourage the private sector to scale up research and innovation significantly in sunrise domains. This will be a big boost for tech-savvy youth and help the Nation strengthen capabilities in the deep tech sector.”

3. Chakravarthi C., Managing Director of Quantum Energy said, “The emphasis on eco-conscious initiatives in the previous budget, with environmental sustainability among the top 7 priorities, set a commendable precedent. In today’s budget, this commitment is not only sustained but elevated, reflecting a clear understanding of the urgent need to address environmental challenges. While applauding the positive aspects of the interim budget, we note certain expectations that remain unmet. The imminent expiration of the FAME II subsidy program by March 2024 sparked hopes for its extension, aligning with the government’s ambitious 2030 target of 30% electric vehicles on Indian roads. An extension would have solidified support for the EV industry. Furthermore, a substantial reduction in GST on lithium-ion battery packs and cells, from 18% to 5%, would have alleviated manufacturing costs, making EVs more competitively priced and boosting consumer adoption. The absence of a standardized policy for the battery-swapping market is also a missed opportunity. A unified policy would enhance safety, streamline charging infrastructure, and create a more reliable and secure environment for EV users."

4. Kumar Gaurav, Founder and CEO of Cashaa said, “We indeed were expecting some progress on the lines of the regulatory framework in the crypto sector, which has been one of the primary speculations all this while. Nevertheless, the government is whole heartedly accepting technological disruption in different sectors by emerging technologies like AI, machine learning, blockchain etc. Adoption of deeptech in sectors like defence indicates a positive sentiment. We do understand that it is an interim budget, and there has been no mention of any regulatory framework or rationalization in tax or TDS structure, in regard to the crypto sector which has been long pending. However, we are hopeful about the coming months and expect to hear encouraging policies soon.”

5. Alok Kashyap, Founder and CEO at Yatiken Software Solutions said, “In line with the government’s ambitious vision of technology contributing 20-25% to the GDP by 2025, this forward-looking budget charts a promising course for the IT sector. The allocation for EV infrastructure development is particularly noteworthy as it opens avenues for software development in EV systems, IoT integration, and data analytics. The 1-lakh crore corpus for long-term financing is another indispensable boon for the IT industry, fostering innovation and research. Moreover, the Skill India Mission’s initiatives and tax benefits for startups provide a robust foundation for skill development and entrepreneurial growth.”

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