Editorial – February 2024

Finance minister Nirmala Sitharaman presented Interim Budget 2024 in the Lok Sabha. The government is looking at generating Rs 120,267 crore from communication services in FY25 by way of license fees, spectrum charges etc from the telecom players.

The government has allocated Rs 1 lakh crore corpus in the interim Budget 2024 for long-term financing of technological research. The interest-free or low interest rate loans and focus on deep tech will further encourage the private sector to scale up research and innovation. This move will be beneficial for startups in the rapidly expanding space sector. Additionally, the new scheme being launched for boosting deep-tech for the defense sector will be transformative. This initiative holds significant promise for DefSpace startups, which can play a substantial role in enhancing the ecosystem due to the integral relationship between space and defense industries.

The Interim Budget 2024 has established a vision for a technology-driven and knowledge-centric nation by 2047. The government’s emphasis on deep-tech, technology-enabled development to benefit the last mile, fostering innovation, R&D and transformational reforms to skill, reskill and upskill India’s youth reflects the country’s commitment towards inclusive and sustained development for all.

Continued focus on a green budget that prioritizes sustainable development through Green Growth, has sent a very strong signal of India’s commitment towards achieving net zero goals and energy transition. Expansion & strengthening the EV infrastructure by supporting manufacturing and charging infrastructure will vastly strengthen this commitment further.

India’s electronics production has grown exponentially about 400 per cent from Rs 190,000 crores in 2014 to Rs 822,000 crores and mobile phone production has grown from Rs 18,900 crores to Rs 350,000 crores in FY23. Electronics has climbed to India’s 5th largest exporting commodity, with mobile phones contributing 50 per cent of this export backed by supportive government policies like PMP, PLI, and SPECS underscoring a collaborative success story. The Interim Budget will further fuel the growth of this segment.