The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has garnered positive reactions from leaders in India’s technology sector. The budget’s focus on skill development, support for MSMEs, and reduction in customs duties for mobile technology has been widely praised. Industry leaders see these measures as crucial steps towards fostering innovation, boosting manufacturing, and positioning India at the forefront of the global digital revolution.
itel India: Embracing Affordability and Innovation
Arijeet Talapatra, CEO, itel India has said: “We commend the government on the Union Budget and are encouraged by the strong backing for the mobile technology sector. The Indian mobile phone industry has seen a remarkable transformation with a threefold increase in domestic production and a hundredfold surge in exports over the past few years. This clearly indicates how the mobile industry in India has matured throughout the years and the reduction to 15% in BCD is a step in the right direction.
A reduction in the Basic Customs Duty (BCD) mobile PCBAs to 15% will not only enhance affordability for our consumers but also drive innovation within the sector. This reduction will bolster the competitiveness of our industry on a global scale, enabling us to deliver cutting-edge technology at more accessible price points. It is imperative that we create a conducive environment for the technological sector to thrive, ensuring that India remains at the forefront of the digital revolution. This move will attract further investments, spur local manufacturing, and ultimately contribute to the economic prosperity of our nation.”
BenQ India: Empowering Education Through Technology
Rajeev Singh, Managing Director, BenQ India and South Asia mentions “The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has adopted a strategic approach for fostering economic growth while bolstering India’s technology landscape. The planned upgrade of 1,000 Industrial Training Institutes (ITIs) through a hub-and-spoke model, along with the alignment of course content to industry needs, reflects a proactive strategy to address the skills gap in the workforce and prepare students for the evolving job market. Such an emphasis on skill development and education bodes well for not only the emerging workforce but also interactive technology companies.
For display and interactive tech companies which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology. By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges. This alignment between government initiatives and private sector capabilities is crucial for driving educational transformation in India.”
Amazfit: Boosting MSMEs and Manufacturing
CP Khandelwal, Joint Managing Director – HTech, CEO – PR innovations & PSAV Global – Establishing Amazfit and HONOR in India.: “We congratulate the government on the Union Budget and are heartened to see the robust support for MSMEs and manufacturing sector. The credit guarantee scheme for MSMEs in the manufacturing sector, with coverage up to Rs 100 crore, is a game-changer. This initiative will spur innovation and growth, providing critical support to homegrown enterprises and elevating India’s position in the global manufacturing landscape.
The government’s decision to reduce the Basic Customs Duty on mobile phones, PCBs, and chargers to 15% marks a pivotal moment for our technology sector. This strategic move recognizes the significant maturation of the Indian mobile industry in recent years and is set to attract global value chains to our shores, enabling large-scale manufacturing operations.
These measures collectively ensure a more resilient and innovative ecosystem, benefiting both the industry and consumers. This budget has not only addressed current challenges but also lays the groundwork for a prosperous and self-reliant India in the years to come.”
Workforce Skilling and Technology Adoption
Srividya Kannan, Founder and CEO commented: “In its detailed roadmap for ‘Vikisit Bharat,’ the budget emphasized the urgent need to focus on upskilling the workforce through centrally sponsored schemes. The government aims to create employment for about 4.1 crore youth over the next five years, with an allocation of ₹2 lakh crore announced by the finance minister.
Additionally, ₹1.48 crore has been proposed for skilling our citizens. This initiative aims to skill 20 lakh youth over the next five years, with 1,000 industrial training institutes being upgraded to meet industry skill requirements. This investment underscores the government’s commitment to making the workforce industry-ready and globally competitive.
These efforts will be complemented by the private sector, providing crucial internship opportunities. The announcement of 1 crore youth gaining internships in the top 500 firms aims to offer real-world experience and corporate exposure, essential for developing a skilled workforce. With emerging technologies like Generative AI transforming industries, this initiative will help close the gap between job requirements and skills.
The Finance Minister also highlighted the need for increased technology adoption to enhance the ease of doing business, improve data and statistical records, and enable informed decision-making. This focus on technology as an enabler is set to enhance our workforce’s capabilities, making them more adaptable to rapid global market changes.
By prioritizing skilling and technology adoption, the government seeks to boost the economy’s production capabilities. The vision of a Digitalized India is poised to propel our growth story forward, ensuring our workforce remains competitive and ready to meet future challenges. This holistic approach will drive economic growth and ensure our youth contribute meaningfully to the nation’s development.”
Kapal Pansari – Managing Director, Rashi Peripherals Limited, said, “This is a good budget for the Indian economy. The Finance Minister, Nirmala Sitharaman, has proposed several changes in income tax to ease doing business and provide relief to income taxpayers. The basic import duty on mobile phones, PCBA, and chargers is reduced from 20% to 15%. This is expected to increase competition in local manufacturing against imports. In networking products, the basic duty is increased from 10% to 15%, which is expected to support local manufacturing. Overall, this is a good budget for rural, industrial, and agricultural development.”
Mohammed Roshan Aslam, Co-founder & CEO of GoSats, feels abolishing Angel Tax and reducing Corporate Tax offers a unique opportunity for Indian startups to grow at an unprecedented rate, “The financial blueprint put forward by the Union Budget is highly favourable to the startup ecosystem in India. The Angel Tax has been one of the limiting factors for Indian startups, and doing away with it offers a unique opportunity for entrepreneurs to ensure scalability and attract angel investments. Furthermore, the Union Budget proposes to reduce the corporate tax rate on foreign companies from 40% to 35%, aligning with long-term business goals and FDI inflow, assisting the entrepreneurial spirit further.”
Vivek Tyagi – Managing Director, Field Sales – Analog Devices India, commented, “The Union Budget 2024–25 has taken a substantial leap towards positioning India as a global technology and manufacturing hub. With a keen focus on semiconductor and electronics industries, the announcements are in sync with Analog Device’s vision for India. We, at Analog Devices, aim to focus more on R&D initiatives to propel India’s growth towards technological development and manufacturing prowess.
While the government has launched these initiatives aimed at providing a conducive ecosystem for economic and technological development, we play our part in upskilling our workforce, contributing towards the government’s goal of a trained workforce. We are optimistic about India’s future and all geared up to make our contribution towards this historical momentum.”
“I am encouraged by Budget 24’s focus on startup growth through the abolition of the angel tax. The emphasis on digitization and ease of business are commendable steps. The “Viksit Bharat” initiative is a welcome step to create a skilled workforce, driving employment and innovation in the country. However, I had hoped for more robust policies and infrastructure support for AI, as awareness in the Indian market is still nascent, and there is a mix of fear and excitement about its potential across various fields,” said Tapan Barman, Chief Executive Officer, Mihup.ai, an AI-powered Conversational Intelligence platform for enterprises.
Lakshmi Mittra, SVP and Head of Clover Academy, commented,
“The Union Budget 2024’s focus on upskilling and education is a crucial step towards empowering youth and preparing them for the ever-changing demands of the tech industry. The allocation of Rs 2 lakh crore to five key schemes aims to create jobs and provide skill development opportunities to 41 million young people over the next five years. This strategic investment will bridge the gap between current skills and industry needs, equipping our young population for future challenges.
In addition, the initiatives to increase women’s participation in the workforce are significant strides toward gender diversity. These include the establishment of working women’s hostels in partnership with industry, the setup of creches, women-specific skilling programs, and the promotion of market access for women-led self-help group enterprises. With over Rs 3 lakh crore allocated for women’s initiatives, the government is fostering an environment where women can thrive and make substantial contributions to the tech industry.”
Puneet Gupta, Vice President & Managing Director, NetApp India/SAARC, said, “The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, highlights digital infrastructure as a key driver of economic development. The substantial allocation of over 11 lakh crore rupees for infrastructure development and the support for private sector investments signal a strong commitment to advancing India’s digital capabilities. NetApp’s objective of advancing intelligent data infrastructure closely aligns with this focus on digital infrastructure.
At NetApp, we recognise that effective digital infrastructure is essential for enhancing productivity, creating business opportunities, and fostering innovation. The Budget’s emphasis on improving data governance, including better data collection, processing, and management through sectoral databases and technology tools, supports our goals. By utilising AI and observability, we are committed to advancing these initiatives and improving data management, cyber resilience, and data governance. Additionally, the government’s significant provision of Rs 1.48 lakh crore for education, employment, and skilling will be instrumental in developing a workforce equipped to harness these advancements effectively.
The government’s focus on promoting women’s participation in the workforce through the establishment of working women hostels and the allocation of over Rs 3 lakh crore for schemes benefiting women and girls is commendable. These initiatives will enhance diversity and inclusivity in the tech sector, fostering a more balanced and innovative workforce that drives industry growth and progress.”
Pankaj Jathar, CEO of NIIT Ltd. Commented, “The budget announcement has laid a strong foundation for advancing education, skilling, and employment opportunities and is truly commendable. The allocation of Rs 2 lakh crore for the five employment and skilling schemes, along with Rs 1.48 lakh crore for education, employment, and skilling, underscores the government’s dedication to the country’s youth and its commitment to propel growth. The new centrally sponsored scheme aimed at skilling 20 lakh youth over five years will significantly contribute to fostering a skilled workforce. This significant step is the need of the hour to bridge the gap between education and the skills essential to equip the youth to be industry-ready. These initiatives will help us maximize our education and skilling efforts, propelling the next phase of growth for the Indian economy.”
Joseph Sudheer Reddy Thumma, MD & CEO, Magellanic Cloud, commented, “The Union Budget 2024 marks a significant step forward in shaping India’s future, and at Magellanic Cloud, we are truly inspired by the bold measures outlined to drive innovation, create jobs, and strengthen infrastructure.
The proposed schemes to incentivize hiring first-time employees and the introduction of a new credit guarantee scheme for MSMEs are steps in the right direction. These initiatives will not only bolster the manufacturing sector but also enable MSMEs to thrive without the constraints of collateral, thereby fueling innovation and job creation.
The increase in Basic Customs Duty (BCD) on telecom equipment, particularly PCBA, presents a challenge for the drone manufacturing industry. However, this shift underscores the need for us to intensify our focus on local sourcing and innovation to mitigate cost impacts and ensure sustainable growth.
Additionally, the ₹11 lakh crore allocation for infrastructure development and investment-ready industrial parks will enhance our operational efficiencies and capabilities. The support for R&D through the Anusandhan National Research Fund further aligns with our commitment to innovation and growth.
Moreover, the allocation for employment and skilling under the PM Package and the comprehensive internship scheme will nurture the next generation of talent, which is vital for sustaining our industry’s growth.
As we navigate these changes, Magellanic Cloud remains committed to leveraging these opportunities to drive excellence and contribute to India’s technological and economic advancement. In alignment with the vision of a “Viksit Bharat,” we are dedicated to playing our part in building a developed and prosperous India.”
Amit Chadha, CEO and Managing Director, LTTS, said, “We welcome the Union Budget FY25 announcement by Finance Minister Nirmala Sitharaman, which presents a holistic approach to boosting employment, skilling, and infrastructure development. The allocation of ₹2 lakh crore towards employment and skilling schemes, coupled with groundbreaking initiatives for women empowerment and an ambitious internship program, will create a robust talent pipeline vital for the industry.
The reduction in corporate tax rates, alongside the substantial ₹11 lakh crore allocation for capital expenditure, reflects a favourable pro-business environment that will drive innovation and attract investments. As an ER&D services company, we are particularly excited about the focus on digital public infrastructure and the establishment of the Anusandhan National Research Fund. These initiatives will foster a culture of innovation and elevate India’s position in the global R&D landscape.
Additionally, the development of investment-ready industrial parks promises to create new opportunities for technological advancements. I am confident that these measures will significantly contribute to India’s journey towards becoming Viksit Bharat,” he added.
A. Gururaj, Managing Director, Optiemus Electronics Ltd., said, “We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries in particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related eco system in India.”
Joyshree Das Verma, National President, FICCI FLO, said, “This year’s budget marks a significant stride towards enhancing women‘s role in India’s economic development. The allocation of more than Rs 3 lakh crores for women-specific schemes and skilling programs underscore the government’s commitment to women-led development and enhancing economic inclusivity. The government is creating a supportive environment for women professionals through market access to women-led Self Help Groups and the establishment of working women’s hostels and creches in partnership with businesses. Furthermore, the reduction in duties for properties purchased by women and the introduction of the NPS Vatsalya scheme, which promotes long-term savings for minors, exemplify the government’s commitment to an inclusive financial landscape for women and their families. Schemes like PM Vishwakarma, PM SVANidhi, Mudra Yojana and Lakhpati Didi are a testament to the transformative impact of targeted financial support for women. FICCI FLO stands poised to collaborate closely with the government to ensure these initiatives translate into tangible benefits for women entrepreneurs. Together, we can accelerate the momentum towards gender equality and inclusive growth, enabling women entrepreneurs to thrive and contribute significantly to the nation’s economy”.
Agendra Kumar, Managing Director, Esri India said, “It was encouraging to see the focus given in the budget on Infrastructure, Energy sector and urban development. GIS plays a very important role in these sectors. The Finance Minister spoke about improving productivity in the agriculture sector and digital crop survey in 400 districts. GIS can be an important tool in these as well. The focus on rural land records, GIS mapping for urban land records, and the use of GIS for property tax collection also offer opportunities for the GIS industry. These will improve the income of cities which can be used to improve the quality of infrastructure in cities and to provide better living conditions to the citizens. The investment of more than Rs 11 lakh crores in infrastructure development is also a positive news for the GIS industry.”
Kavitha Ramachandragowda, Co-Founder and Executive Director, Routematic, said, “The Union Budget 2024-25 serves as a significant stride towards women’s empowerment, earmarking over ₹3 lakh crore for initiatives benefiting women and girls. By facilitating higher participation of women in the workforce through the establishment of working women hostels and creches in collaboration with industry, the government is creating supportive environments for women professionals. The government’s focus on higher education, women centric skilling, employability, and enhanced schemes for women entrepreneurs along with the abolition of the angel tax is commendable and will undoubtedly boost the startup ecosystem in India and representation of women in the Indian workforce.”
Neha Bagaria, Founder & CEO, Herkey, said, “As a woman entrepreneur, I am deeply encouraged by the Union Budget 2024-25’s commitment to fostering women’s participation in the workforce. The dedicated focus on creating hostels and women-specific skilling programs reflects a significant step towards gender parity in business. Moreover, the new credit guarantee schemes for MSMEs, which remove the burden of collateral requirements, will empower countless women-led enterprises to grow and innovate. This budget not only addresses immediate economic needs but also lays a strong foundation for a more inclusive and equitable future. It is heartening to see such a comprehensive approach to unlocking the potential of countless women across India.”
Atul Soneja, Chief Operating Officer, Tech Mahindra said, “Employment and skilling are important pillars of a growing economy. The government’s sustained focus on prioritizing skilling and employment is a commendable step towards enhancing human capital and creating job opportunities for the youth. In today’s rapidly evolving world, skill development is critical, and the government’s commitment to training 20 lakh young people over the next five years will help them in the job market and foster job creation nationwide, beyond the Tier-1 cities. This initiative aligns with the industry’s increasing demand for a workforce equipped with contemporary skills. Further, the expansion of skill development programs to Tier-2 and Tier-3 cities resonates with the government’s vision of ‘Vikshit Bharat 2047’. These cities are emerging as talent hubs and will contribute to long-term growth and the creation of local employment opportunities. It will also strengthen the pace of infrastructure development and scale the R&D initiatives in the country.”
Archana Jahagirdar, Founder & Managing Partner, Rukam Capital, said, “We applaud the Hon’ble Finance Minister for abolishing the Angel Tax in the Union Budget presented today. The removal of this tax, which had raised major concerns among foreign investors regarding startup investments in the country, has been a long-standing demand of the startup ecosystem. This announcement provides much-needed relief and paves the way for further growth in this burgeoning sector. Additionally, the introduction of the credit guarantee scheme for MSMEs, the self-financing guarantee fund with a guarantee cover up to ₹100 crore, and the increase in the limit of Mudra loans to ₹20 lakh from the current ₹10 lakh are crucial supportive measures. These initiatives will significantly help entrepreneurs by easing access to finance, fostering innovation, and driving economic growth. We are optimistic that these steps will create a more conducive environment for startups and MSMEs to thrive.”
Dr. Yajulu Medury, Vice Chancellor, Mahindra University, said, “An increase in the budget allocation for the education sector is a positive development. It indicates a commitment to make education more affordable and accessible. Many private institutions already support research-based education through substantial subsidies. The new internship scheme could also encourage industries to offer paid opportunities, addressing the issues of unpaid internships. While this budget reflects a hopeful step towards stabilizing and enhancing education, especially after the challenges posed by the pandemic, we look forward to more support in research and competency-building.”
In conclusion, the Union Budget 2024 has received widespread approval from the technology sector. Leaders across various segments of the industry have praised the government’s focus on skill development, support for MSMEs, and initiatives to boost manufacturing and innovation. As India continues its journey towards becoming a global tech powerhouse, these budget measures are seen as crucial steps in the right direction.
