The Digital Budget of 2022-23: A New Start

Asoke K Laha, President & MD, Interra Information Technologies

What is so significant about our National Budget 2022-23? There can be different shades of opinion. Some argue that it was not a populist budget, despite expectations among the analysts in view of the ongoing elections in five states. An overwhelming opinion is that it was a digitally focused  budget in the sense that there were many proposals in the budget to strengthen the digital economy. That way, many observe that it was a futuristic one since the beneficial spin offs of the budget would take time to permeate into the grassroots. I concur with the view that the budget is unprecedentedly focused on the digital economy.

Let me catalogue some of the Budget proposals that can really give the digital economy a boost. From data centers to Kissan drones, to animation and digital currency,  to gaming and edutech,  to e-health and e-passport, the budget  contains a bouquet of proposals that can transform the Indian economy. The caveat is that provided the proposals are implemented in letter and spirit. Is the focus on the digital economy a recent phenomenon? I do not think so. Every Budget, for quite some time, has been focusing on the digital economy in one way or the other. Perhaps, this is the first time several proposals have come together in a harmonized way, to create a general opinion that the Budget’s focus on the digital economy is unprecedented.

It is a good augury that the Government of India has taken a cue from what is happening in countries which have advanced in the digital world. That cannot happen in a vacuum. We have to take concrete steps towards that. I must say, the budget 2022-23 has taken clear steps towards that.

Where do we lag in the digital landscape? For making incremental advances in the digital world, we have to take a  ground level assessment about the prevailing situation. Of course, we should point out the advances that we have made in recent years. They are impressive.   But at the same time,  we should take stock  situations where we are lagging. While complimenting the government for the proactive programs being unveiled, let me point out some of the challenges before us. Foremost is the challenge of poverty. Since independence, we may have come a long way in addressing this problem. Should we not collate data about the areas of shortages of food, quantum of their requirements, how fast such food grains can be dispatched to these centers on a regular basis with the help of the local administration. The village officers should be empowered to  notify the requirements and should be made responsible if such things do not  reach regularly to such areas. They should also be held responsible for pilferages. I am not saying that such monitoring is not happening. Yet, we have to completely eradicate them.  

Should we not use our digital network to store such data and monitor the supply positions on a day- to - day basis? There should be an affordable price tag coupled with easy access to such services. Such prompt services should be the part and parcel of the inclusive welfare measures. 

The other challenge is potable water. We have been implementing several schemes to make available portable water to citizens. Yet, there are several hundred villages which are still cut off from having such facilities. Should we not address these issues squarely and pin responsibility on officers who cannot implement them in time and in the proper way. What is more important is to empower the officers to take decisions and to give them resources to implement them in time. Modern gadgets like drones, satellites, sensors, data mining, artificial intelligence etc. should be deployed to collate information about problem villages and to strategize how clean drinking water can ensure such places.

Digital education has received a great boost during the pandemic days. Many technologies are now being devised by the central government to make distance education of required quality and content. New TV channels are being launched  for that purpose. There is always a digital divide between the cities and rural areas. Every village should have dedicated lines to beam educational materials to the students to help them catch up with their city brethren. Equally important are empowering teachers in rural areas. Online orientations for teachers will be convenient and practical. 

In the case of higher education,  the students in tier 2 and three cities suffer a lot as compared to their counterparts in metros. They are denied the benefit of good faculty who are mostly employed in city colleges. Online classes inviting good faculty can be arranged for students across the country. Let the governments pay for such expenses. The same also is the case with engineering and medical colleges. Can we have faculty hired from outside India, such as MIT and other top technology institutions to take online classes on specific subjects, which should be open to all students irrespective of their affiliation?

Another important area is R&D. Empirical evidence indicates that India is a laggard in that area. Data speaks for itself. While most of the developed countries spend between 5 to 10% of their GDP on R&D, for India, it is less than 0.5%, which is abysmally low. Most of that expenditure is accounted for by the government run organizations like central laboratories and public sector undertakings.   Involvement of the private sector is insignificant. Coming specifically to the ICT sector, my sense is that India has to start from ground zero for R&D and innovation. 

Let us try to do some comparisons. Global ICT companies invest heavily in R&D and innovation. Examples galore:  Apple, Intel, Dell, Samsung etc. invest a good portion of their sales income in R&D,  so also internet companies like Microsoft, Facebook, Twitter etc. That is why they are coming out with new products and solutions in a sustainable manner. Whereas in the case of India, whatever little R&D works we do are confined to the government laboratories, with very little practical use or commercial value.  The government should fund only such projects, which should have practical application and should closely monitor their progress.  The best way is to handhold the research projects with concerned industry or a consortium of industries to find end-users for such research works. 

The other important area of priority should be streamlining the patent system to make it fast so that patents are given without undergoing the rigmarole of delays. We should develop a distinct patent culture in India. 

In conclusion, the Budget is a good start for ICT. But for the ICT to become a game changer, several such steps are needed. Indeed, there is a growing realization of the power of technology and the ICT sector. Let that continue in the same vigor to help us to emerge as a strong and vibrant ICT production and export hub. Let us make the Digital Revolution happen and keep happening.