Technology forms the backbone of modern businesses and society, driving innovation and transformation across all domains. As Satya Nadella rightly pointed out, “Every piece of technology should help embellish the capability of human beings.” By enhancing human potential, technology empowers organisations to thrive and contribute towards the country’s growth.
In today’s digital age, technology is at the heart of every big idea. Our reliance on it is undeniable, and as automation continues to grow, it promises even better results. Whether it’s startups, small businesses, Micro, Small and Medium Enterprises (MSMEs), or multi-national corporations, technology has become essential for smooth operations and long-term success. Staying competitive in today’s fast-changing world means adopting advancements that make organisations stronger and more efficient. India’s progress in building a strong digital infrastructure has not only boosted our economy, but has also elevated our presence on the global stage, showcasing our potential as a technology-driven nation.
To be specific, Viksit Bharat 2047 envisions positioning India as a global leader in innovation, self-reliance and sustainable growth. Our ambition lies in gradually integrating new-age technologies into the fabric of our rich culture. By embracing these advancements thoughtfully and responsibly, and improving accessibility, we can pave the way for a future where technology complements our traditions and drives inclusive growth.
2024 has been a challenging year for the technology sector, with slowing growth (3.8 per cent for Indian technology in FY24), funding slowdowns, layoffs and rising risks like cyber incidents and Generative Artificial Intelligence (AI) misuse. Despite these hurdles, India’s IT industry crossed revenue of $250 billion, growing at 3.8 per cent in FY24, and remains a global leader due to its vast engineering talent and digital transformation expertise.
Pre-budget expectations and reforms
- Improving and strengthening technology infrastructure– Strengthening technology infrastructure by focussing on data security and protection through updated legislation and policies should be a strategic priority of the budget. Critical steps need to be taken to support the growing demand for data centres and ensuring their protection. A pre-budget expectation survey conducted by Grant Thornton Bharat concluded that “50 per cent of respondents pertaining to the IT industry think that enhancing data security should be a primary consideration in the budget with respect to reforms.” Implementing stringent data protection laws, investing in IT upgrades and advancing in cloud technologies and data management systems can be a good first step. These actions will ensure security, compliance and public trust while aligning with global standards to support digital transformation.
- Technology R&D– It must be a cornerstone for growth in technology. Establishing a dedicated AI research fund, offering tax incentives for robotics and AI development and investing in AI-driven public services are critical measures. These steps will accelerate innovation, improve efficiency and enhance service delivery. Strategic R&D funding can address pressing challenges in healthcare, education and sustainability, paving the way for a more equitable and technology-enabled economy.
- Skilling and upskilling: The government must prioritise skilling and upskilling initiatives in advanced technologies such as Generative AI, Large Learning Models (LLMs), cloud computing, Intefrnrt of Things (IoT) and cybersecurity. Investment in public-private partnerships, nationwide skilling programmes and reskilling initiatives will create a future-ready workforce capable of driving innovation and enhancing productivity. Substantial funding in human capital development is essential to maintain global competitiveness and support sustained digital transformation.
- Production-Linked Incentives (PLIs): Expanding PLI schemes to include sectors such as data centres, defence, consumer electronics and industrial electronics will bolster manufacturing growth and attract investments. By reducing import dependency and strengthening supply chains, these measures will position the country as a major global player while fostering economic resilience.
- Space technology: Significant investment in space technology is crucial for strengthening national security and creating high-tech jobs. Public-private partnerships in commercial space ventures will unlock new opportunities, foster innovation and position the country as a leader in the global space industry. Strategic policies and funding will catalyze the growth of a thriving and competitive space ecosystems
- Enhancing cybersecurity: Transitioning from traditional audits to real-time cybersecurity management is essential to combat increasingly sophisticated threats. Streamlined regulations under Digital Personal Data Protection Act (DPDPA) 2025, backed by government funding for compliance, Information Technology (IT) infrastructure upgrades and advanced technologies, will ensure a secure and resilient operating environment.
- Simplifying tariff structure: Reducing the current seven tariff slabs to three will simplify trade, lower compliance costs and enhance business competitiveness. Streamlined tariffs will attract investments, boost exports and foster a more business-friendly environment, creating a stable foundation for long-term economic growth.
- AI governance and deployment: Developing clear ethical guidelines and a robust AI governance framework is critical to balance innovation with responsible use. Dedicated funds for AI research, tax reliefs for AI deployment and startup-focussed loan programmes will spur innovation while addressing ethical concerns. AI-driven public services can transform governance, making it more efficient and citizen-centric.
- Strengthening hardware-software ecosystems: The global semiconductor shortage underscores the need for significant investment in local chip manufacturing. Strengthening supply chains and incentivising data centers will ensure the technology sector remains resilient and self-sufficient. Investments in robotics and advanced infrastructure will further solidify the country’s technological capabilities and global competitiveness.
A focussed push on strengthening infrastructure, fostering R&D, skilling and incentivising critical sectors will enable India to build a future-ready technology ecosystem. Strategic investments in data security, AI, local manufacturing and simplified regulations will drive innovation, create jobs and position the country as a global leader in the digital economy.
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