Tech Budget 2024: FM Sitharaman Announces Key Initiatives for the Technology Sector

Finance Minister Nirmala Sitharaman presented the Interim Budget 2024, featuring pivotal announcements for the technology sector. In her presentation, she emphasized the government's commitment to overcoming challenges with the 'Sabka Sath Sabka Vikas' mantra.

Contrary to expectations, artificial intelligence (AI) did not take centre stage in the announcements, but the budget unfolded several significant initiatives for the tech sector.

The budget documents for 2024 are accessible through the Union Budget Mobile App, available on Android and iOS, and the official website, www.indiabudget.gov.in. Here are the key announcements for the tech sector:

1. Free Electricity for One Crore Households: Sitharaman declared that one crore households would receive up to 300 units of free electricity monthly through rooftop solarization, aligning with Prime Minister Narendra Modi's commitment made during the Ram Mandir consecration ceremony on January 22.

2. Rs. 1 Lakh Cr. Corpus for Research and Innovation: The finance minister allocated a corpus of Rs. 1 lakh Cr. with long-term financing or refinancing options, spanning up to 50 years with minimal to no interest. This initiative aims to incentivize the private sector to boost research and innovations by leveraging the potential of youth and technology.

3. New Scheme for Deep Tech Technologies: A new scheme will be introduced to bolster deep tech technologies for defense purposes and export under the Aatmanirbhar Bharat infrastructure.

4. Technology Support for MSMEs: The finance minister underscored the government's commitment to providing timely and adequate financing for technology in Micro, Small, and Medium Enterprises (MSMEs). Emphasizing the importance of relevant tech, proper training, and adequate finances, the government aims to facilitate sustained high and resource-efficient economic growth, contributing to energy security.

5. Absence of AI-related announcements:No AI-related announcement in the budget was noteworthy. Anticipating significant reforms and initiatives in technology, particularly in the rapidly growing field of artificial intelligence (AI), experts were eager for developments that could potentially reshape our daily lives and work environments. Surprisingly, the Finance Minister did not make any announcements related to AI, leading to confusion among observers. Given the increasing impact and potential risks associated with AI, some speculate that such announcements may be reserved for the presentation of the total budget in July.

The Interim Budget 2024 reflects the government's strategic vision for technology-driven progress, encompassing diverse sectors such as renewable energy, research and innovation, defense, electric vehicles, and MSMEs.