Budget 2024: From AI to semiconductors, here's what tech sector expects from the govt

As India prepares for its 2024 budget, the technology sector is buzzing with expectations. Industry leaders across various domains, from gaming and artificial intelligence to semiconductors and wearables, have shared their hopes and recommendations for the government's fiscal policies.

Rajan Navani, Founder and CEO of JetSynthesys: Navani emphasizes the importance of government support in the video gaming and esports industry, urging for initiatives that focus on talent development, including skills in design, product, UI/UX, engineering, 3D art, and AR/VR. He suggests the industry should be viewed as an IP and product-led sector rather than just service-oriented, advocating for incentives to foster entrepreneurship and employment opportunities. Navani also calls for accelerating AI initiatives in education to bolster India's global gaming expertise.

Navani said, “In the last year, India has stood resilient, witnessing growth across various sectors even amidst a global recession. The video gaming and esports industry came out as one of the fastest growing industries during the time. And as we approach the interim budget, we look forward to continued government support for initiatives that have laid the foundation for this success. Recognizing the potential of the video gaming sector, we urge the government to focus on fostering talent through incentivising skill building in multiple aspects of video games - strengthening design, product. UI/UX and engineering, 3D art, AR/VR skills, in the curriculum and support the launch of collaborative projects with academic institutions. This cannot only cultivate a skilled workforce but also position India as a global hub for gaming expertise.”

Varun Gupta, co-Founder, BOULT: Gupta anticipates policy reforms like reduced GST rates on electronics and tax incentives for startups. He highlights the need for policies that support early-stage entrepreneurship and cater to Production Linked Incentives in sectors beyond smartphones.

Gupta said, “India's tech landscape is primed for monumental growth, and with the upcoming budget, we're surely heading towards a breakthrough. We anticipate some crucial policy reforms, such as the reduction of GST rates on electronics, which will not only fuel the industry's fire but also make tech more accessible to the masses. Tax incentives for angel investors can catalyze a surge in innovation, while extended tax rebates for startups like us are crucial for nurturing early stage entrepreneurship.”

Dr. Gopichand Katragadda, The Institution of Engineering and Technology: Katragadda stresses the need for enhanced policies and funding to support India’s technology startup ecosystem. He outlines specific areas for R&D funding, including sustainable public transportation, AI in defense, and health tech for rural areas. Additionally, he highlights the need for strategic investments in the semiconductor ecosystem and manufacturing, along with easing business processes to bolster India’s tech leadership.

Katragadda said, “The need of the hour is to accelerate our technological development through enhanced policies, increased funding, and improved ease of doing business. India’s vibrant technology startup ecosystem, a testament to our innovative spirit, requires further nurturing. Specific R&D funds earmarked for startups, akin to initiatives like the IDEX and DISC, are commendable, but they need to be amplified with better transparency in fund allocation and tangible outcomes.”

Amit Prasad, Founder and CEO, SatNav: Prasad foresees the budget emphasizing digital infrastructure, R&D incentives, and nurturing innovation hubs. He highlights the need for augmented funding in cybersecurity, AI, IoT, and 5G technologies, along with revised tax policies to boost IT exports.

Prasad said, “The IT sector foresees the 2024 Union Budget emphasizing digital infrastructure investments and providing incentives for research, skill enhancement, and nurturing innovation hubs. Hopes encompass augmented funding for cybersecurity, backing for cutting-edge technologies such as AI, IoT, and 5G, and revisions in tax policies to stimulate IT exports. Streamlined regulations for startups and increased focus on digital education initiatives are also expected.”

Sanjay Gupta, Chairperson of IESA: Gupta calls for focused support on reducing the major entry barriers in the semiconductor industry, including high costs associated with employee, EDA, fabrication, and validation. He advocates for providing risk capital to startups in this sector to enhance global competitiveness.

Gupta said, “This year should mark the next phase of growth for the semiconductor industry in India, focusing on unleashing the untapped potential of Indian entrepreneurs who are keen to pursue semiconductors and embedded ESDM sector. They face four major entry barriers: high employee cost, high EDA cost, high fabrication cost, and high validation cost.”

Also read: Budget 2024: What retail, FMCG sectors expect from the Interim Budget

Also read: Budget 2024: Roti, deficit aur kisan. Seven things to look out for on February 1