What Industry Wants from Interim Union Budget 2024

Mr. Gaurav Sahay, Practice Head (Technology & General Corporate), Fox Mandal & Associates shared his views:

In 2023, India was hit by 2,138 cyber-attacks per week per organisation. The Ministry of Electronics and Information Technology (MeitY) allocated a sum of Rs 625 crore to improve the country's cybersecurity infrastructure in the Union Budget 2023. Analysts are wondering if the government will make a similar allocation this year as well.

Interim Budget 2024 to focus on shaping the industry with more advanced technologies like artificial intelligence (AI). The Indian government's involvement and framing of relevant policies is crucial. Therefore, it has become increasingly fundamental in Make AI in India and therefore the government should invest heavily, establish enabling mechanisms for its rapid growth.

Expectations for continued government investment in technology, with a rising trend in the space tech industry urges GST exemption expansion to satellites, launch vehicles, and ground equipment in the upcoming Interim Budget. Indian Space Association (ISpA) has represented 39 start-ups and major companies, and seeks tax exemptions for space sector firms. They have advocated for reducing tax rate to 5 percent on external commercial borrowings and lowering withholding tax on the satellite sector from 10 percent to 2 percent.

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Mr. Kahraman Yigit, Co-Founder and CEO of Olive by Embassy commented:

"India's 2024 budget should prioritize revitalizing the hospitality sector, emphasizing sustainable tourism and infrastructure development. Incentives for digital innovation and skill training are vital to cater to the post-pandemic era's demands, ensuring long-term industry resilience and job creation."

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Mr. Hitesh Garg, Vice President, and India Managing Director, NXP Semiconductors commented: 

“As we approach Union Budget 2024, the semiconductor industry in India is all set for a significant boost. Programs like PLI and DLI, especially in supporting Global MNCs, are set to spark innovation on a global scale. The rapid formation of the Indian Semiconductor Research Consortium (ISRC) further indicates a commitment to progressive research.

Our pre-budget forecast emphasizes on joint funding and collaboration with technology leaders, which can be seen as a smart move to establish India as the world’s semiconductor hub. The key proposals include the exemption from customs duty for electronic transmissions and a uniform tax policy that fosters favorable business conditions by promoting smooth cross-border data flow.

The focus on fostering start-ups and creating jobs in the semiconductor industry also brings out India’s stride towards becoming a center for advanced technological prowess, ensuring a resilient semiconductor ecosystem."