Budget 2024: Centre To Step Up Adoption Of Technology For Digitalisation, Says Sitharaman

Finance Minister Nirmala Sitharaman presented the Union budget 2024 in Parliament on July 23—the first budget of Prime Minister Narendra Modi's new coalition government.

Sitharaman said that India has used technology for improving productivity and bridging inequality in the economy in the past decade. Public investment in digital infrastructure and innovations by the private sector have helped in improving access for citizens to market resources, education, health and services. She underscored that the government will step up the adoption of technology towards digitalisation of the economy.

Below are some key highlights of Sitharaman’s budget speech, with regards to technology and digitalisation:

Research And Innovation: In line with announcements in the interim budget, the government will set up a mechanism for spurring private sector-driven research and innovation with a financial package of Rs 1 lakh crore, the Finance Minister reiterated.

E-Commerce Export Hubs: To facilitate micro, small and medium enterprises and traditional artisans to sell their products in international markets, the Finance Minister proposed the establishment of e-commerce export hubs in public-private partnership. These e-commerce hubs, under a regulatory and logistic framework, will facilitate trade- and export-related services under one roof.

Data Governance: For improving data governance, collection, processing and management of data, various sectoral databases—including those established under the Digital India Mission—will be utilised with active use of technology tools, Sitharaman said.

DPI For Agricultural Sector: The Finance Minister highlighted the importance of digital public infrastructure in agriculture, announcing that the central government in partnership with states will push DPI in the sector. Additionally, digital crop survey will be conducted in 400 districts, details of around 4 crore farmers will be included in farmer and land registries, and land records will be digitised.

Space Economy And Tech: The government will continue to promote space economy and technology, earmarking a venture capital fund of Rs 1,000 crore, which is expected to fuel technology innovation and growth of small companies and spacetech startups.

Reduction In Duties For Mobile Components: The Finance Minister proposed a reduction in basic customs duty to 15% from 20% for mobile phones, mobile PCBAs and chargers.

IT-Based System For Property Records: An IT-based system for property record and tax administration will be established, which will help facilitate improving the financial position of urban local bodies, Sitharaman said.

Tech Platform For IBC: An integrated technology platform will be set up with the aim of improving the outcomes under the Insolvency and Bankruptcy Code, in a bid to achieve consistency, transparency, timely processing and better oversight for stakeholders.

Credit Assessment Model For MSMEs: Public sector banks will develop a new credit assessment model based on the scoring of digital footprint of MSMEs. This technology-enabled assessment is expected to be an improvement from the traditional assessment of credit eligibility of MSMEs.

Technology As An Enabler Of Productivity And Equality: The Finance Minister stressed that technology will be a key enabler for improving productivity and bridging inequality as the government aims to implement next-generation reforms for various factors of production, including land, labour, capital and entrepreneurship.