Finance Minister Nirmala Sitharaman presented the Union Budget of the Modi government before the 2024 Lok Sabha elections on 1 February 2023. The total size of the 2023-24 Budget stood at Rs 45.03 lakh crore - a 7.5 percent jump over the revised estimate for 2022-23 - and to help meet the gap between its income and expenditure. The Centre will borrow a record Rs 15.43 lakh crore from the market through the issuance of bonds.
“Currently, those with an income of Rs 5 lakhs, do not pay any income tax and I proposed to increase the rebate limit to Rs 7 lakhs in the new tax regime," the Finance Minister said while presenting the Budget. The income tax exemptions and restructuring will provide a huge relief to the middle- and lower-middle classes and help them accomplish their aspirations.
“This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100. We envision a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially our youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes” the Finance Minister said.
In the last nine 9 years, the Indian economy has increased in size from being 10th to 5th largest in the world. We have significantly improved our position as a well-governed and innovative country with a conducive environment for business as reflected in several global indices. We have made significant progress in many Sustainable Development Goals, Finance Minister Nirmala Sitharaman added.
The key features of the budget are highlighting inclusive development with opportunities for citizens with focus on youth, growth and job creation, strong and stable macroeconomic environment.
Industry’s reaction on this year’s Union Budget 2023-24
Puneet Gupta, vice president & managing director, NetApp India/SAARC
“The announcements made by the Hon’ble Finance Minister Nirmala Sitharaman have given us a lot to be excited about. The mission of Amrit Kaal has put us in a strong position to truly call this a digital budget, given its large focus on technology and digital. From the government’s announcement of setting up of 100 5G labs and the development of 3 Centers of Excellence for AI, all of these will go a long way in unleashing the digital potential of the country. In a world that is driven by data and AI, we see numerous and infinite opportunities ahead of us. It will be a privilege for us at NetApp to play our role in building a truly digital nation which is the future of tomorrow.”
Country Manager, Pure Storage India
“The Union Budget presented by the Hon’ble Finance Minister is growth-oriented and inclusive. The impetus for the 'Digital India' vision is clear from budgetary allocations across sectors like infrastructure, skill development, sustainability, MSME, and entrepreneurship.
This budget provides numerous growth opportunities for the technology industry by bringing digital solutions and innovation in legacy sectors like infrastructure, manufacturing, education, railways, healthcare, financial services, and regulatory bodies to turn India into a technology-driven, knowledge-based economy. Also commendable is a clear intent and investment in making India a net zero carbon emission country by 2070 through National Green Hydrogen Mission. Overall, the budget 2023 promises to sustain and catalyze India’s economic and digital growth with a strong role played by technology."
In this Union Budget, the government has set the tone to unleash both human and digital potential for the country’s socio-economic development. This is reflected from all the 7 key priorities including reaching the last mile, infrastructure and investment, youth power, inclusive development, unleashing the potential, green growth, and financial sector.
The government has shown a clear objective of raising the infrastructure development in the country as it plans to raise its capital expenditure by 33% to INR 10 trillion ($122.29 billion) in the next fiscal year. This will provide the much-needed impetus to the existing infrastructure schemes like Gatishakti, Bharatmala, Parvatmala, Sagarmala amongst others.
Apart from this, with the announcement of PM Kausal Vikas Yojana 4.0, the government has set a clear agenda to make the Indian youth ready for next generation technologies. The initiative to train 47 lakh youths digitally on industry 4.0 technologies like AI, IoT, drone and 3D printing etc. will make them ready for the industry-specific roles. This will be key for the logistics sector as organizations have started deploying technologies to automate warehouse, supply-chain, and workforce management.”
From agriculture to youth, the government has taken concrete steps in every segment to facelift the country’s socio-economic status. With organizations increasingly investing in next-generation technologies like AI and ML to elevate customer experience, visions like ‘Make AI in India’ and ‘Make AI for India’ will be critical to elevate operations in the customer engagement industry amongst others. This will help in creating a talent pool, doing R&D or developing products that will work for both Indian and global organizations in their CX journey.
Apart from this, with the PM Kausal Vikas Yojana 4.0, the government has set the agenda clear to make the Indian youth ready for next-generation technologies. The initiative to skill 47 lakh youths digitally on AI amongst other next-generation technologies will make them ready for industry-specific roles and this will also help organizations to bridge the engagement capacity gap. As an organisation with 100% AI-enabled solutions, including technical services support, cloud operations, development services, and R&D, India is our second largest revenue-generating market in the APAC region. Enabling an environment to research and develop further on Artificial intelligence will help the overall services sector grow by leaps. At present all our services are being offered from India.”
Alok Dubey, Chief Financial Officer, Acer India
"The Union Budget unveiled today echoes the government's objective of "Digital Development" for the country.
It places a high value on technology and innovation as a whole. Realizing the vision of "Make AI in India and Make AI Work for India" is projected to strengthen the country's standing in the technology industry globally and generate numerous possibilities for the youth. The mention of lowering the minimum TDS threshold and clarifying taxability linked to online gaming is an encouraging step towards gaming industry in India, and it is expected to open up more prospects in the following year. This year's budget also has prioritised sustainability; this is a step toward a green future that allows businesses and SMEs to enter the market with green products and services; this is a commendable and promising move. Overall, the Union Budget 2023 is promising and represents a significant step toward digital transformation and a holistic sustainable growth.”
Manoranjan Mohapatra, CEO, Comviva
“With the ongoing 5G rollouts in India, the government's decision to establish 100 5G application Labs is a timely move to spur innovation in developing the 5G ecosystem and India relevant use cases. There is a great opportunity to combine 5G and AI to improve network speed, responsiveness, and efficiencies. The special emphasis on establishing AI centres of excellence shall help produce specialized talent to enable India preserve its global advantage and leadership. These are extremely positive initiatives and shall bring technological advancements to the country as AI and 5G are the two most critical elements to enable futuristic innovations and developed related 5G ecosystem.”
“I am pleased to see the focus in Union Budget to strengthen the Digital ecosystem, India's digital advancements in this decade have been remarkable, especially the integration of digital infrastructure and identity framework. Establishing a strong national identity system is crucial as it boosts security, drives economic growth, and strengthens social unity. The adoption of a unified KYC process, utilizing Digilocker and Aadhaar as the primary means of identity verification, is a positive step forward and will increase financial accessibility for marginalized communities”.
“The government's focus on the skill development of India's potential youth talent through initiatives like NEP, PMKVY 4.0 for skilling in niche new-age technologies like 5G, AI, 3D printing, drones, coding, mechatronics, robotics, and IoT draws further impetus to the ongoing efforts. Blue and grey-collar job demand in India grew by up to four-fold in 2022. Annual demand in telecommunications and 5G have increased by 33.7 per cent in September 2022. There was a demand for 1.3 million workers in FY22-23 which is growing each year and. New use-cases including cloud computing, robots, and the Internet of Things (IoT) are also seeing a sharp rise in hiring. We believe the initiatives will be beneficial to close country's growing demand supply gap of technical talent workforce. With the government's push to establish 30 Skill India international centres, 100 premier labs for developing applications to use 5G services, and centres of excellence for AI, India has the potential to deliver talent not only across domestic markets but also to the international market. The initiative like the Eklavya Model Residential Schools (EMRS) is also a progressive move by the government to uplift the tribal population and empower the students to take up new job opportunities.”
Rajiv Bhalla, Managing Director, India & Vice President APAC, at Barco
“Indian economy is heading towards a bright future, the 'Saptrishi' of the Budget 2023 prioritizes on inclusive development, reaching last mile, unleashing potential, green growth, youth power. Announcement around adding 50 tourist destinations as a whole package and focusing holistically on physical as well as virtual connectivity, tourist guides, high standards for food streets and tourists’ security through an app to enhance tourist experience, is a significant step that will unlock growth and job opportunities in the sector. The Budget is perfectly aligned with Barco’s aim to make India a popular tourist destination with visible impact, allowing people to enjoy compelling entertainment experiences. Further, Budget has focused on overall growth & sustainability as India has the potential to be a world-class infrastructure centre, moving toward net zero carbon emissions by 2070 & setting up the AI based solutions in health, education, and sustainable cities will give additional push towards the extensive use of technology”.
A. Gururaj, MD, Optiemus Electronics
“This year’s budget is a strong effort to consolidate the Indian economy in post-pandemic dynamics, raising the personal tax exemption limit will certainly boost consumption and the electronics industry will surely benefit from it. Continuing the import duty cuts on Camera Lens and batteries for mobile manufacturing is a welcome step and this will continue to fuel the remarkable growth India has witnessed in domestic manufacturing.”
“It is a very positive budget from a technology sector perspective, as it sets the right message about 5G labs, setting up AI centre of excellence and the focus around skilling, which is absolutely the key need for the country as we live through the Prime Minister’s vision on TechAde and technology being the core enabler. From a business perspective, steps around ease of doing business have been taken and I think that's commendable. I would like to congratulate the Finance Minister and the government for taking these steps”.
Triveni Rabindraraj, Head of Sales at GoTo, India.
"Union Budget 2023 is a great development and comes with many positives keeping people at the heart of Amrit Kaal vision. With the level of technology disruption and digital adoption witnessed in the last year, it is exciting to see the government’s inclined interest towards a technology-driven and knowledge-based economy. Start-ups and SMEs have the potential to be the key employment generator in the country. The renewed emphasis on growth in the MSME sector, women empowerment, and skilling is a welcome move as it strengthens inclusive and sustainable progress across all industries. The Pradhan Mantri Kaushal Vikas Yojana 4.0, Make AI in India, and increased focus on 5G continuum will prove to be a big push to bridge the talent gap and prepare country’s youth for Industry 4.0 by empowering them with new-age technology skills needed to make India one of the world’s preferred innovation hubs. These initiatives will level the playing field to enable MSMEs to invest in and improve their digital talent, enhance employee value proposition, and drive better business outcomes.”
Balaji Rao, Area Vice President, India & SAARC, Commvault
“The budget 2023 has been laid down with a future-ready outlook and highly compliments nation’s objective of innovative, technology-driven and knowledge-based economy. The increased impetus on data generation and management while ensuring privacy, security, and trust is a powerful move. The India Datasets program and the proposed National Data Governance Policy will empower academia, researchers, and start-ups with access to a large repository of India-specific dataset and is an indispensable move by the government to further propel the Digital India vision.
Furthermore, the government is pushing the agenda of upskilling to prepare for a resilient future. The framework outlined to upskill the youth with 30 Skill India International centres, will bridge the persisting digital gap and unlock a massive pipeline of jobs and entrepreneurial opportunities. The initiatives for telecom services and modernization of agri sector through Digital Public Infrastructure will be critical in modernizing and broadening the scope of data generation, management, and protection.
The cumulative effect of all the initiatives will eventually generate enormous amounts of data that will intensify the need for reliable, unified data management and protection solutions. The budget 2023 is a foundation for India@100 and will strengthen our digital ecosystem, drive transformation, and fortify India as a leading digitalized nation.”
Sudhir Kunder, Country Director, DE-CIX India
‘Successes in the previous budget and our transformation into the 'AmrutKal' were highlighted today by the Honorable Financial Minister.
It's encouraging to see continued support for digital payment systems, digital document integration, and the creation of a digital public infrastructure for agritech and Fintech. Introduction of Digital lockers, Digital Library, E-Courts, and the promise of one hundred research labs to create applications for 5G were the landmark announcements.
Empowering youth with 30 Skill India Centers imparting skills like Coding, AI, robotics, mechatronics, IoT, 3D printing, and drones with other NextGen cutting-edge technologies will make them economically independent.
Establishing three Institutes of Excellence for Artificial Intelligence Development is a major step forward for our country and will help to create AI in India and make AI work for India.
Summarizing, the budget makes it abundantly clear that 2023 will be the year of digitalization, with demands for digitalization rising throughout the year. As an Interconnection Platform, DE-CIX India is pleased to shoulder the duty of ensuring the long-term viability of India's Digital Infrastructure as "We Make Interconnection Easy. Anywhere".’
“The 2023 Union Budget holds immense promise for technology development and skilling. Today, developing new skills is essential for various industries with new and emerging technologies. In particular, cybersecurity is a field that is constantly evolving and requires regular upskilling through advanced training programs. In the recent years, we have seen a significant rise in cyberattacks, however, many organizations are struggling with skill gap and resource crunch. It is encouraging to see that infrastructure and investment as well as youth power are main priorities as these are closely aligned with dynamic industry needs. Investments in infrastructure will have a large multiplier impact on growth and employment, leading to ramping up the virtuous cycle of investment and job creation.
The government’s decision to formulate the National Education Policy, focused on skilling will facilitate job creation at scale. The digital ecosystem for skilling will be further expanded with the launch of a unified Skill India Digital platform for enabling demand-based formal skilling. The proposed Pradhan Mantri Kaushal Vikas Yojana 4.0 meant for skilling youth shall entail new age courses for Industry 4.0 like coding, AI, robotics, soft skills etc. It is a great incentive keeping in mind the importance of skilling, upskilling and reskilling in the present scenario. Another emerging technology today is Artificial Intelligence.
The three proposed centres of excellence for Artificial Intelligence too is a good opportunity for industry players to partner in interdisciplinary research, develop cutting-edge applications and scalable problem solutions. These initiatives will pave the way for building a workforce that will be skilled and ahead of the curve in their respective industry.”
“The Union Budget for 2023 sets the stage for a growth-friendly strategy with a vision of a technology-driven and knowledge-based economy in the post-pandemic world. As the budget focuses on seven pillars of growth with a three-pronged approach to facilitating ample opportunity for citizens, especially the youth, providing a strong impetus to the development and job creation, and stabilizing the macroeconomic environment, we are well-positioned to tackle difficulties and prosper in the new normal.
This year's budget provides us with a forward-looking blueprint for India’s resilience, competence, and innovation. The Centre emphasizes on ensuring the community's overall progress through technology and digitalization. By offering new-age courses in 3D Printing, drones, coding, Robotics, AI, etc, through Kaushal Vikas Yojana or developing 30 Skill India International centers, India could further strengthen its position as the ultimate destination of top talent. I am pleased with the Centre's measures for Make AI for India and Make AI Work for India, intended to encourage innovation in AI. The establishment of three Centres of Excellence for Artificial Intelligence at prestigious educational institutions coupled with leading industry players partnering to conduct research and develop cutting-edge applications would unleash the potential of the Indian economy. As a result, India will be able to create an effective AI ecosystem as well as nurture skilled AI professionals. This is also a significant step in promoting financial inclusion in India, allowing industries across sectors to become more accessible to a broader segment of the population.
Innovation is at the core of this year's budget as the government takes its digital India initiative to the next level with the deployment of 5G services and a new program to promote R&D in pharma. In addition, the Data Governance Policy will be launched this year to enhance startup and academic research and innovation. Thus, we are indeed on a highway to building an open, digital, and inclusive India in the coming years.”
Kuldeep Malhotra, Dy. Managing Director, Konica Minolta Business Solutions India Pvt Ltd
“We are delighted to have a Union Budget that focuses on introducing new technologies on a wide scale. Since our youth is the backbone of our economy, Finance Minister Nirmala Sitharaman talked about training millions of youth within a period of the next three years under the government's Pradhan Mantri Kaushal Vikas Yojana 4.0. The scheme will also cover new-age courses for Industry 4.0, like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. These are the technologies that will assist businesses across multiple fields to function smoothly. Additionally, the decision to set up 30 Skill India International Centres will open the doors of international markets to Indian youth.
Furthermore, with Budget 2023, the government is taking its sustainability initiatives to new heights. Programs that promote green fuel, green energy, green farming, green mobility, green buildings, and green equipment, are the need of the hour. These green growth efforts help cut down the carbon intensity of the economy and provide large-scale green job opportunities.”
Parag Khurana, Country Manager, Barracuda Networks India
“Cybersecurity has for long been a critical matter of concern, especially in light of rapid digitization. With the rollout of 5G and cloud migration, there has been a significant uptick in cyberattacks across the country. In 2022, we have seen the rise of ransomware against critical infrastructure, with education (15%), municipalities (12%), healthcare (12%), infrastructure (8%), and financial (6%) being the five key targeted industries according to research. The Union Budget announcement today paints a favourable picture for the sector with the introduction of the National Data Governance policy will help academia and start-ups gain access to anonymised data by the government.
Provisions like the establishment of three centers of excellence for Artificial Intelligence in top educational institutions noting that 'Make AI in India' and to 'Make AI work for India' will support the creation of a stronger technology infrastructure in the country. This will further boost the government’s vision of ‘Digital India’ and ‘Atmanirbhar Bharat’. That being said, Budget 2023 amply highlights the greater focus that the government has placed on string digital infrastructure and technology at large. And, we are hopeful that today’s announcement will have an inherently positive effect on the sector.”
Pramod Sharda, CEO, IceWarp, India and Middle East
“The Union Budget 2023-24 by FM today has announced attractive incentives and rebates. The Income limit for rebate of Income Tax increased from 5 Lakhs to 7 Lakhs is a welcome note for the employee base. The budget includes renovations in the digital framework of the nation focusing on increasing the accessibility of these services for rural and tribal areas. We highly support the government’s initiatives to create jobs, and are keen on contributing towards the projected employment generation initiatives.
We are excited to witness the development of a tech-driven economy while contributing towards the same and enabling the growth-bound MSMEs sector, which will be infused with Rs 9,000 crore in revamped credit guarantee scheme, with our affordable, seamlessly integrated, secure Email & Collaboration solutions to effectively communicate and collaborate towards the growth path.
It certainly boosts our morale when we noticed that investment and job creation continue to be the government's top priority as they announce capital investment outlay being increased by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. Announcement of National Data Governance policy is also a positive move to protect the data privacy.”
Prashanth GJ, CEO, TechnoBind Solutions
“The Union Finance Minister Mrs Nirmala Sitharaman tabled the Union Budget 2023-24. She began by stating that the government sees the next 25 years as ‘Amrit Kaal’ marking the centenary of India’s independence. This is the first budget of this period and the government aims to achieve a technology-driven and knowledge-driven economy. The budget certainly reflected the FM’s statement and the plans being laid out to achieve this milestone. The budget has focused on youth, their skill enhancement and job creation, and the strengthening of the macroeconomy.
Technology will be a driving force in achieving these goals. 5G has been the center of focus with enterprises diving to benefit the most by using it as an instrument for development. The government’s focus on setting up 100 5G labs in engineering colleges to develop 5G-based applications will further enhance the efforts being made by the private sector. The initiative of having an open-source standard for the agriculture sector will help technology firms and startups in helping the farmers, which is still one of the largest sectors in India. The focus given to youth through various announcements shows the government’s focus on the future of the country. Apart from the 5G labs set up in the colleges, the government’s recognition towards new-age skills will help SMEs with a competent workforce. The access to courses on coding, mechatronics, IoT, robotics, drones and 3D printing will help the youth enter the workforce. Make AI in India and Make AI Work for India – this slogan boosts the tech vertical’s efforts in including artificial intelligence in every aspect of our life as it betters the living and boosts development in every vertical. The government announcing the setting up of 3 Centres of Excellence for artificial intelligence has strengthened the efforts. Experts from the industry will be helping in the research and development of AI-based applications to help the agriculture, healthcare and sustainability sectors. These announcements in the budget will definitely have a positive outcome and help India’s tech vertical to achieve bigger milestones in the coming years.”
Piyush Somani, Managing Director and Chairman, ESDS Software Solution Ltd.
"The Union Budget 2023-24 has put a lot of emphasis on Agritech, fintech, Co-operatives and future technologies like AI, ML, IoT and etc., signaling a positive push towards technologically advanced Digital India & a greener India. The government's emphasis on digital infrastructure through 100 labs to facilitate apps employing 5G services will aid technology adoption that will help the country advance towards more digital applications like smart classrooms, precision farming, intelligent transport systems, and healthcare in order to realize new range of options, business models, and job potential. The emphasis on the co-operative sector, Millets, agriculture sector by facilitating Agri-based rural startups certainly will improve the livelihoods of farmers, increase food security and boost exports through open-source digital public infrastructure. The national data governance policy to be released to encourage innovation and research by startups and academic institutions and will make it possible to obtain anonymous data. Overall, this budget focuses more on Capex spending from the government, while most of the technology related announcements had no budget allocated at the moment. We need to wait for next couple of months to see some budget getting allocated to the technology related initiatives."
S Durgaprasad, Co-Founder, Director, and Group CEO, Bahwan CyberTek
“The political will to invest in people and research for technology-driven growth is clear. The announcement of three centers of Artificial Intelligence and 100 labs for 5G apps to nurture R&D in India with the vision to Make AI in India and Make AI work for India will further strengthen India’s position vis-à-vis global counterparts. The 30 Skill India international centers focused on emerging technologies, with a strong focus on, on-the-job training, will contribute to the country’s expanding knowledge capital, positioning India as a strong digital contender.
The reduction of compliances to improve ease of doing business, the 33% hike in capital expenditure, along with the continuation of interest-free loans to state government will catalyse economic growth providing job opportunities. Budget 2023 is a progressive step towards building a stronger digital and green India.”
Sachit Nayak, Country Controller & Finance Director, Eaton, India
“Pathbreaking budget that would drive Indian economy and deliver on Amrit Kal goals. FMs seven saptarishi is a step in the right direction and aptly will catapult Indian economy to newer heights. FM has touched major segments wherein significant investment outlay has been budgeted that are growth drivers i.e. Infrastructure, Railways, agriculture, MSMEs, cooperatives, etc. another notable thing is the discipline to get fiscal deficit to under 4.50% progressively in the next 3 fiscal years. Middle class income tax payers would be in happy camp with 5 key measures. This should help drive consumption thereby fueling growth in economy. Reducing basic customs duty structure, simplified tax structure and several sops for agriculture & cooperatives are positives. Overall, I will classify this as growth budget, will lead to ease of doing business and attract investments.”
Dr. Rishi Bhatnagar, President at Aeris Communications
“The forward looking of budget 2023-2024 and its seven priorities or the “Saptarishi” will complement each other in India's growth during Amrit Kaal. The budget ticks all the boxes in terms of use of AI, emerging technology, social entrepreneurship, employment generation, push for manufacturing, infrastructure development, skilling and R&D to help India march towards inclusive and sustainable development. I personally admire the attention given to future technology with the proposal of setting up centres of excellence for Artificial Intelligence in top educational institutions of the country and prompting 5G labs. Budget 2023 is futuristic and encourages avenues of growth in future tech, healthcare, smart cities, digital communications, agriculture and multiple other sectors. I believe that new technologies drive innovation across business models and demands supportive policies and skills which have been managed well in this budget.”
Sudhindra Holla, Director, India & SAARC, Axis Communications
“The Union Budget for this year focuses on inclusive economic growth in order to strengthen India's status as a global digital powerhouse. We are optimistic about the government's saptarishi, or seven pillars, with a renewed emphasis on green growth. We are delighted with the Centre's focus on tourism and investment in transportation infrastructure projects as this indicates an increase in demand for safety and surveillance solutions. We are aligned to further action India's vision to transform our cities into ‘sustainable cities of tomorrow’. This will serve as a stepping stone in revitalising Smart Cities planning and urban development. The budget 2023 has a future-ready outlook and compliments the nation’s unmatched growth for digital economy, innovation, and inclusive development.”
Javed Tapia, Founder & Managing Director, Clover Infotech
“The measures introduced in the Union Budget 2023 in terms of ease of doing business such as reducing compliance requirements and legal provisions will play a key role in attracting global investments into India. By relaxing contract execution policies, facilitating availability of credit, and extending tax benefits to start-ups and MSMEs, the FM has taken progressive steps to build a favourable support ecosystem for start-ups and MSMEs. The training and skilling initiatives under the ‘Make AI in India’ and ‘Unified Skill India Digital Platform’, will create a highly skilled workforce that can significantly accelerate our economic growth.”
Hitesh Garg, India Country Manager, NXP Semiconductors
“The government has brought a progressive budget that will support green mobility and innovation in the automobile sector. Major steps like National Green Hydrogen Mission and extending the subsidy on EV batteries will help the country to have a seamless transition towards a low carbon intensive and fossil fuel dependent economy, empowering the country to achieve its net zero goals.
The three centers of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India' will stimulate an effective AI ecosystem and nurture quality human resources in the field of technology. It will also boost the Public-private partnership in conducting research and developing cutting-edge applications and scalable solutions across industries.
In line with the government’s vision of digital India, all these initiatives will help us transform into a digitally empowered society and knowledge economy.”
Sanjeev Singh CEO & MD - CMS IT Services
“The infra and capex push of the budget combined with a focus on creating a tech and knowledge-driven ecosystem will accelerate India’s journey to becoming a $ 5 trillion economy. This will also generate tremendous opportunities for the tech industry in multiple advanced domains like 5G, AI, digital, agri-tech & fintech.”
Arun Balasubramanian, Vice President & Managing Director, India & South Asia, UiPath
“We are glad that in this year’s budget, a greater focus has been given to Digital India where technology is an enabler for the economic and overall development of the nation. For India to adopt and implement emerging technologies, a robust skilled workforce is needed. And the provision of the Skill India Digital Platform is the right step in making a highly skilled workforce. It will unify and enable demand-based formal skilling, which has been much needed to bridge the gap between academia and industry. With the Skill India Digital Platform and the proposed National Digital Library, we are confident that young Indians will have the resources to upskill in areas like AI, automation, and robotics, which will in turn make Digital India a reality. With the launch of The National Data Governance Policy, Indian users and companies can now access anonymized data, which will provide greater opportunities for innovation. These are exciting times for a tech-enabled India, and soon the country will become a talent powerhouse for the world.”
Vishak Raman, Vice President of Sales, India, SAARC and Southeast Asia at Fortinet
“A steep increase of 33% in capital investments to 10 Lakh Crore almost three times the outlay made in 2019 shows why India is one of the most buoyant economies in the world. While Investments and development programs are all tech-driven the budget realises the potential of 5G by setting up 100 labs in engineering institutions to develop Apps to assist in all verticals including smart classroom, precision farming, smart transport systems and healthcare.
The capital flowing into AI-Startups last year was $2.7 billion globally. The race in AI is heating up after the success of ChatGPT and the budget has realised this potential with the vision of Make AI in India and Make AI Work for India. The setting up of 3 centers of excellence for artificial intelligence in top educational institutions will combine tech and computing power with some of the best engineering brain power in our country.
A robust financial sector, expanding the scope of Digilocker to allow more documents to be made available and setting up of e-courts will all go hand in hand with maintaining data privacy. There simply cannot be any data privacy without data protection and cybersecurity will requireanentire system of people and technology working together to protect data and networks.”
Arundhati Bhattacharya, Chairperson & CEO Salesforce India
“The 2023 budget is a growth-oriented and inclusive one that lays a solid foundation and strengthens the economic outlook for India. We have a unique opportunity of being a demand-driven economy with a rapidly digitising population. The increased capital investment outlay has a multiplier effect on generation of employment opportunities and thereby better standard of living for citizens. India is the talent basket of the world and has one of the youngest populations globally; we have a tremendous opportunity to unlock the potential of the country’s young workforce. The unified Skill India Digital Platform, addresses the imperative of businesses and Government to do more to address the skills gap enabling inclusive development of talent. Promoting sustainable growth is an opportunity for India to lead and has been essential and top of mind for all leaders; the focus on ‘green growth’ across sectors can unlock new economic opportunities for India. We are proud of the progress we have made over the last few years on Digital Public Infrastructure and a significant driver to this has been the innovation in Fintech, this budget is an impetus to further accelerate this growth with investments in AI, 5G, startups and more, accelerating demand and innovation at scale. Continued emphasis on Trust-based Governance and Ease of Doing Business, especially in a growth economy, has the potential to attract investments. The budget gives businesses India an opportunity to shine bright - domestically and internationally - ensuring they act, and fast.”
Hemant Tiwari, Managing Director, India, Hitachi Vantara
“This year's budget spells growth and inclusion overall. The government's initiative around Fintech services, enhancing the usage of the national level cloud platform DigiLocker, will further boost technology adoption among individuals and MSMEs. The introduction of the National Data Governance Policy will enable safe access to anonymized data and increase transparency. Moreover, with the AI revolution happening globally, the AI centres of excellence will provide exciting opportunities for cutting-edge innovations to be deployed across important sectors such as healthcare and sustainable cities, while providing new employment opportunities. Additionally, ‘The Green Credit programme’ as well as the initiatives towards building ‘Sustainable cities of tomorrow’ are strong leaps forward in building India’s green future. These are indicators of our nation’s commitment to climate action and efficient use of resources.”
Amit Chadha, CEO & MD, L&T Technology Services
"The Union Budget 2023 has shown a strong focus on boosting digital infrastructure and adoption, which is a positive sign for the technology industry. It was also encouraging to see Hon'ble Finance Minister Smt. Nirmala Sitharaman share her vision of "making AI in India and making AI work for India”, further highlighting the importance of building a strong AI ecosystem in India. We welcome the government’s move towards developing three AI excellence centres and 100 5G labs, as well as introducing the National Data Governance Bill, which will open up a wide range of opportunities for business growth and employment generation. As a pure-play ER&D services provider, our belief is that such a mass scale enablement of digital transformation and innovation will unlock the full potential of the Indian engineering and technology sector. It will also result in complementing uptake of digital engineering capabilities resulting in the country maintaining its strong hold as a global preferred destination for engineering services.”
Venkatraman Narayanan, MD & CFO, Happiest Minds Technologies
“Digital has emerged as the hallmark of Union Budget announced today. Be it setting up of AI-focused CoEs, or Unified Digital Skilling platform, the role of digital technologies is empathetically at the forefront of India's economic rise. It will be interesting to see how the paperless digital locker based documentation storage and management for citizens shapes up, as accordingly it promises to open up a wave of opportunities in the domestic market related to cyber security, cloud, AI and ML. While tax exceptions on exports are a welcome step, certain breather on corporate tax would have complemented it well. Overall, it is a sound and holistic budget devised to ensure upliftment, empowerment and inclusivity to all.”
Manpreet Singh Ahuja, Partner & Leader TMT, PwC India
“India continues its journey of taking a digital leapfrog by following a bold,
futuristic approach in the Union Budget 2023 with a focus on CapEx led growth and sustained development, along with embracing emerging technologies. By promoting an AI ecosystem, 5G labs and setting-up skill centres for emerging technologies, India will get the interdisciplinary R&D boost.
Push for green growth will create the much-needed ESG driven innovation ecosystem. The boost for MSMEs and startups through credit support and tax incentives will help in strengthening India’s core. With custom duty reliefs on machinery and critical components, along with fiscal support for digital infrastructure and access to anonymised data, India is all set for its journey to become a strong manufacturing alternative for the world.”
Rajesh Doshi Director and Co-founder at Zebronics
"The Union Budget 2023 was presented by the Union Finance Minister Nirmala Sitaraman today. The budget is being received positively as a progressive step towards improving the economy. One of the notable changes is the increase in the tax slab limit from 5L to 7L, providing more purchasing power to the general public. The new tax regime also offers relief to law-abiding taxpayers. These rebates on income tax will infuse a new life in the economy. The reforms in agriculture and health sectors are expected to have a positive impact on the economy. Additionally, the budget introduces new tax reforms and incentives for the "Make in India" program, as well as duty rebates for manufacturing, like TV Panel, li-ion batteries etc, which are expected to drive growth in the modern electronics and mobility sector. These rebates will help in setting up the local electronics manufacturing ecosystem in the country, which is the need of the hour. We can surely see India becoming one of the manufacturing hubs in the world."
Sunil Nayyar, Managing Director, Sony India
“This budget is quite progressive and growth-oriented which is in line with the government's long-term vision for India’s path to becoming a major global economy. Measures taken for significant job growth opportunities, especially in infrastructure, agriculture and the rural sector is very encouraging. This will in turn give a major boost to the rural economy, thereby increasing business potential in tier II and tier III towns in India which is a positive step in the right direction. This budget should propel more demand and consumer spending across various sectors, especially with more disposable income in hand of consumers owing to significant tax benefits. The newly announced reduction in Basic Customs Duty for several television component imports is a big boost for the television industry. We welcome this budget in its entirety and we are optimistic of our future business plans in India.”
Subbu Iyer, Regional Director, India & SAARC, Forescout Technologies Inc.
“As announced by the Hon’ble Finance Minister in the Union Budget 2023, the government shared its exemplary vision of ‘Amrit Kaal’ which includes a technology-driven, knowledge-based sustainable economy. The government appears to cover a vast gamut of sectors and some of the priority areas are Digital India, 5G services, upskilling and building a cyber resilient nation. This is expected to drive the next phase of cybersecurity infrastructure in the country thereby bringing in focus around solutions providing stronger compliance, data privacy, IoT security, advanced detection, and response.
Government is fast tracking 5G adoption with focus on application development, training, smart transport and healthcare. The combination of 5G and IoT would result in massive growth in the number of connected devices. Hence it will be critical for organizations to protect their IT, IoT, IoMT and OT device landscape against growing cyberattacks.
The initiative of setting up CoEs for artificial intelligence (AI) with a vision of “Make AI work for India” will further boost the government’s aim of “Digital India.” AI is critical in every sector today and more so in cybersecurity where there is a growing need to improve visibility, compliance, detection, and response through automation.
While automation is important, the government has rightly placed equal emphasis on development of manpower. The “Pradhan Mantri Kaushal Vikas Yojana” clearly outlines the need to upskill the youth to develop competency of functionaries and professionals in upcoming areas like coding, automation, and IoT. It also highlights the need for key partnerships in developing courses and enabling on-job training. This will act as a catalyst to address the skills gap in cybersecurity by providing better means for training and upskilling of resources.
Government is also leading from the front in terms of allotting investments towards cybersecurity response and projects. This clearly indicates the importance of cybersecurity to build a strong nation and will definitely inspire businesses to follow and invest in protecting their ever-expanding digital infrastructure.”
Dr. Deepak Kumar Sahu, Editor-in-Chief- VARINDIA & Group Publications
“The Union Budget 2023-24, lays a futuristic 'Amrit Kaal' supporting critical sectors including Digital India, fintech, agriculture and big public investment for infrastructure, which balances growth with fiscal prudence. Despite the global economic slowdown, it is truly remarkable. Investment in research and development is crucial in overcoming the challenges posed by macro trends and the threat of recession. For instance, allocating more funding to R&D than marketing, companies can ensure their continued success.
The introduction of three centres of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India' is something to look forward to for the upcoming digital nation. The initiatives outlined for skill development and research in cutting-edge fields like artificial intelligence (AI), robotics, and 5G, among others are encouraging for the IT industry. The budget brings a huge push to the digital economy with the government’s initiative to set up 100 labs for 5G solutions across engineering colleges and the announcement around the National data governance framework will further empower the students, Indian start-ups, and researchers that will collectively help us achieve our collective vision for the 5 trillion economies.”
Aalok Kumar, President and CEO, NEC Corporation India
"With a clear focus on inclusive development, reaching the last mile, infrastructure development and unlocking the nation's potential, the Union Budget 2023-24 is comprehensive to fast-track growth. From strengthening India’s prowess in technology and AI and being future ready to truly unleashing the potential of 5G, the budget is holistic in its approach and will certainly pave the way for tech-enabled growth for the country in the coming years. Coupled with strategic focus on building infrastructure and connectivity in sectors including transportation and aviation will have a significant impact in making India a more agile economy, and in making the daily lives of citizens more convenient and efficient. We look forward to collaborating with the government to help shape India’s digital future."
Vinod Nair, Global VP of Sales and General Manager, Noventiq India
In recent budgets, India’s government has shown itself to be both imaginative and effective when it comes to deploying policies and incentives which will continue to attract innovators and incentivise them to draw on India’s spectacular talent pools. Of course, these have mostly been life-support measures to help those companies which took a hit during the COVID-19 pandemic, but, this year, we can expect more positive incentives, aimed at encouraging foreign investment, and creating a business-friendly environment which will propel the startup ecosystem on to new heights.
Many companies in India, even those who are not categorised as IT companies, are struggling to find the right balance for employees who are working remotely. One of the policies that would be welcomed with open arms would be a working from home allowance, essentially allowing employers to mitigate the costs of recruiting and running a predominantly remote workforce. We also anticipate that incentives may be on the cards in the form of tax breaks and grants for implementing platforms and tools to level up those working from home.
Aakrit Vaish, CEO and Cofounder, Haptik
With the implementation of 5G, the government has made it their mission to establish a Center of Excellence in Artificial Intelligence. The application and use of AI technologies have revolutionized a wide range of areas including e-commerce, retail, healthcare, BFSI (banking financial services & insurance), real estate, education and travel. By creating this hub for technological innovation we can continue to propel our nation forward into new heights! The budget presents a comprehensive analysis of the potential uses of Artificial Intelligence (AI) to bolster India's economy, and outlines numerous applications for this revolutionary technology. 100 laboratories will be established in engineering colleges across the nation so as to generate AI-based 5G services; likewise, three Centres of Excellence for Artificial Intelligence are slated to open up at top educational institutions. This government-led initiative has the potential to create a thriving AI ecosystem and cultivate an abundance of talented professionals in this field.
Sanjiv Bajaj, President, Confederation of Indian Industry (CII)
“It is very much a Budget that balances growth with fiscal prudence. We are seeing significant focus on agricultural productivity and efficiency, actions on the green energy industry and opportunities there as well. So, overall, I would say it is very good.”
Prativa Mohapatra, Vice President and Managing Director, Adobe India
“The Union Budget 2023's emphasis on digitization further solidifies India's position as a global technology hub. According to the government of India's goal of ‘AatmNirbhar Bharat’ in the ‘Amrit Kaal’, the Indian technology sector continues to be extremely crucial, and is prepared to reach new heights and add $1 trillion to the national economy. The establishment of AI excellence centers will lead to increasing adoption of cutting-edge technologies like Web 3.0, generative AI, and the metaverse, and will lead to driving the next phase of digital transformation. By making AI work for India and prioritizing digital and creative skills across all sectors, we can unlock even greater potential for growth.
To fully realize the benefits of this technological revolution, it is important to continue to advance the story of Digital India with a focus on accessibility. To that end, we are committed to support the government’s agenda in transitioning from physical content to digital libraries pan-India to build a robust digital education ecosystem and encourage creation of digital content. As a leader in digital innovation, we at Adobe recognize the critical role that technology has played in propelling India's growth and economic development and the plans announced today will further help establish India as a global technological hub. We are excited to put our best foot forward to contribute with our bit to the overall development on the nation.”
Rajesh Ganesan, President, ManageEngine.
"The resilience of the Indian economy, despite global economic slowdown, is truly remarkable. Investment in research and development is crucial in overcoming the challenges posed by macro trends and the threat of recession. For instance, allocating more funding to R&D than marketing, companies can ensure their continued success.
Initiatives such as the Skill India Digital platform, which provides training in cutting-edge technologies and soft skills, are commendable as the youth need to upskill to succeed in the rapidly changing job market. This investment in human capital is critical to ensure that India remains competitive and well-positioned for future growth."
Muneer Ahmad, Vice President, Sales and Marketing, ViewSonic India
"We are happy to see that the budget 2023 talks at length about decreasing the digital divide by introducing National Digital Libraries that will facilitate access to quality books for children and adolescents across geographies, languages, genres, and levels. Furthermore, the centre's mission to re-envision teachers’ training through innovative pedagogy, curriculum transaction, continuous professional development, dipstick surveys, and ICT implementation will help boost the sectoral growth and knowledge sharing with the District Institutes of Education and Training set to be developed as vibrant institutes of excellence for this purpose. Furthermore, we are excited to see that the centre is working towards setting up of three Centres of Excellence for AI (Artificial Intelligence) in top educational institutes. It is a progressive measure that will help boost knowledge sharing and technology development in the education sector. However, we expected substantial measures in the budget for the allocation of resources for the development of technology in the educational sector. This would have supported higher investment and opened doors for new ventures in the industry."
Vishal Agrawal, MD, Avaya“We appreciate the government’s continuous focus on the technology sector with the Budget 2023-24. The introduction of three centres of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India' is something to look forward to for the upcoming digital nation.
The initiatives outlined for skill development and research in cutting-edge fields like artificial intelligence (AI), robotics, and 5G, among others are encouraging for the IT industry.
In line with the GoI’s initiative to strengthen the MSMEs, we look forward to supporting them in creating a user-friendly space and helping them further to scale up with the help of our robust and collaborative solutions.
The government’s initiative to set up 100 labs for 5G solutions across engineering colleges and the announcement around the National data governance framework will further empower the students, Indian start-ups, and researchers that will collectively help us achieve our collective vision for the 5 trillion economy.”
Rajiv Srivastava, Managing Director, Redington
“We welcome the progressive initiatives announced in the Union Budget 2023, focusing on Artificial Intelligence, 5G, youth skilling, Green Growth, data governance, consumer empowerment, and customs duty relief for mobile phone components—all these initiatives will help intensify the focus on making India a skill capital for the world, a consumption growth economy.
The budget’s focus on green growth will have a multiplier effect on the industrial sustainability, leading to country’s goal of net-zero carbon emission by 2070. Centres of Excellence for Artificial Intelligence, one hundred labs for 5G applications in engineering institutions are very positive steps taken to spur breakthrough innovations in the field of education, agriculture, transport, and healthcare. Further, an impetus to R&D for startups and academia that utilizes data for their growth will be secured under National Data Governance Policy (NDGFP).
Overall, the first budget of Amrit Kaal lays the foundation for a developed India by providing a framework of growth and development through Skilling, Green Energy, R&D, and Technology, which will accelerate the country’s journey to becoming a $10 Trillion economy in the near future.”
Dr. Kailash Katkar, Managing Director & Chief Executive Officer, Quick Heal Technologies
“In the year 2022, India witnessed an unprecedented increase in cyberattacks and their level of sophistication. Cybercriminals are using new and advanced AI technology to attack Indian government agencies and businesses in India to cause significant damage to the country’s reputation. The 2023 Union Budget showcased our government's focus on strengthening the digital infrastructure of the country, which finds a clear reflection in the National Data Governance policy which will create a secure channel to access anonymized data. This budget fully supports the vision of a self-reliant and cyber-safe India. Some of the key takeaways include the three centers of excellence for artificial intelligence to enable 'Make AI for India' and 'Make AI work for India', online training platforms for government employees, impetus on creating informative and accessible digital public infrastructure for agriculture and the setting up of a National Digital Library for children and adolescents amongst others. With this, I am confident that cybersecurity has become more relevant than ever, and will be the make or break for the economic progress.”
Manoj Paul, Managing Director, Equinix India
“With focused initiatives to promote the usage of AI and 5G, the Indian Government is geared up to leverage the advanced technologies for building futureproof businesses and strengthening the digital ecosystem in the country. The emphasis on digitization results in a high demand for tech talent that’s technologically adept and skilled in digital know-how. With the three proposed centres of excellence for AI and 30 new International skill India centres, our government is all set to empower the youth with advanced tech skills. Additionally, the usage of 5G services by the proposed labs in engineering institutions will create a new range of opportunities, business models, and employment potential, lending a widespread purpose to 5G and increasing the need for a robust digital infrastructure. We welcome these government measures as we believe our digital infrastructure will play a pivotal role in boosting India’s digital growth.
With our global climate neutral goal and 100% renewable energy coverage target, along with our green data center design innovations, Equinix can build and operate resilient, efficient and sustainable data centers to support the Government’s Green Growth focus and the National Green hydrogen mission that can help transition to low carbon intensity and reduce dependency on fossil fuel inputs.”
"The Union Budget 2023-2024 has been one of hits and misses according to us. We welcome the National Data Governance Policy that has been announced by the government to unleash innovation and research by start-ups and academia. This will enable access to anonymized data thereby safeguarding companies against data misuse and insider exploitation risks.
AI and skill development in areas such as IoT, Robotics through the proposed setting up of AI centers of excellence will go a long way in mainstreaming AI adoption. Considering the digital world that we operate in, there is a massive demand for AI-trained professionals to not only develop a diversity of solutions for various industries, but also to create automated cybersecurity solutions.
AI in cybersecurity can help overcome the limitations of manual cyberspace monitoring and threat detection. For the Digital India to thrive successfully, training of youth on coding, AI, IoT and Robotics are going to be highly beneficial steps and we are glad that the Government is focusing on these areas. However, the fact that despite rapid surge in cyber attacks and a lot of high value Government institutions like AIIMS being attacked, the Government didn’t focus on any cybersecurity allocations or initiatives, is concerning. The need of the hour is to substantially modernize cybersecurity measures and upgrade cybersecurity knowhow of the Government institutions. In the absence of such measures, it is going to be a tricky scenario where increasing footprint of Digital India might become a playing ground for the cyber criminals. We hope that this gap area is addressed urgently."
Thompson P. Gnanam, MD & Global CEO, 3i Infotech
"The first Amrit Kaal budget is certainly a progressive direction by the Government of India to give a boost to the overall technology-driven and knowledge-based economy within the country. The government's focus on AI and 5G in the Union Budget 2023 will help India’s aspirations of being a global powerhouse of technology, innovation, and digital transformation. The budget comes with a strong promise for development towards the creation and promotion of the vision ‘Make AI in India' and 'Make AI Work for India’. This will indeed enable and establish a strong AI ecosystem in India.
As a company, we envisaged the potential of 5G and AI by setting-up COEs and tying-up with prestigious institutions like IIT Madras Research Park to establish FutureTech Business Labs focused on 5G and allied areas. Hence, the Government’s priority on setting-up 100 labs for developing 5G applications in engineering institutions, to realize new range of opportunities, business models & employment potential, is greatly appreciated and applauded.”
Varun Gupta, Founder & CEO, of Boult Audio
"Budget 2023-24 seems promising for the consumer electronics sector. As the Indian government plans to set up three Centres of Excellence for Artificial Intelligence with the goal of research and development of practical AI applications in various sectors. Realizing the vision of “Make AI in India” and “Make AI Work in India” will enhance the paths towards success for the consumer electronics sector, thereby increasing opportunities and production with cutting-edge technology. Enhanced limits for micro-enterprises and professionals to take advantage of presumptive taxation have opened many opportunities for the industry. Also, the key point that a deduction on payment made to an MSME will be allowed if the payment is actually made has clarified many obstacles. Considering the fact that the Indian consumer electronics market size is expected to expand at a compound annual growth rate, the country provides a global opportunity for average consumer spending. And with the budget announcement regarding the new tax regime to be extended to INR 7 Lakh instead of 5 Lakh as the previous year; middle-class consumers will increase spending on electronics and gadgets. The extended cash withdrawal for co-operative societies - up to INR 3 Crores is an addition to the set of relief aids for the industry.
Dr. Arun Singh, Global Chief Economist, Dun and Bradstreet
The budget is presented at a time when India has become the most populous country and has one of the highest share of working age populations globally. It solidifies the economic agenda of prudential macroeconomic reforms while balancing the growth. Capital expenditure at ` 10 tn, which is more than 11 times the amount expended in FY09, will benefit the economy from the time-tested Keynesian principle of spurring infrastructure to create jobs and channelise multiplier cycles. The 33% increase in capital expenditure assumes significance as India needs to increase its gross fixed capital formation by 5 percentage points to 33% of its GDP in order to realise the vision for Amrit Kaal. Despite a significant rise in expenditures, it is noteworthy that the government continues to adhere to its fiscal deficit target of less than 4.5% by FY26.
The impact on the economy can be seen as generally positive, as it highlights various initiatives taken by the government to support the growth of various sectors such as green mobility, urban planning and development, housing, medical technology, steel, and rubber. The provision of grants, subsidies, and tax exemptions aimed at supporting indigenous production, reducing import dependency, and providing skilled manpower can be seen as positive measures to boost the sector. The budgeted capital expenditure of the Centre and the estimated net tax receipts also suggest positive financial management by the government. The increase in customs duties on some goods, including gold and platinum, can be seen as a way to regulate imports and enhance domestic production.
A few key observations in the technology sector-
Digital infrastructure
The positivity level can be considered high as the focus is on improvements and growth in these sectors, such as the creation of the Infrastructure Finance Secretariat to facilitate private investment, the allocation of a large capital outlay for the Railways, and the establishment of the Urban Infrastructure Development Fund. The plans also aim to improve connectivity, sustainability, and accessibility, through regional air connectivity, mechanical de-sludging of septic tanks, and a National Digital Library. The government also plans to invest in technology, such as the development of 5G applications and the construction of a transmission system for renewable energy. Additionally, there is emphasis on addressing regional needs, such as providing central assistance for drought-prone areas.
Telecom
The creation of 100 labs for developing applications using 5G services will help in realizing a new range of opportunities and business models. It will also aid in creating additional employment opportunities. The announcement on duty concessions is expected to further augment the domestic manufacture of mobile phones, which increased by almost 14 times in value in the last seven years. Announcements for the sector will strengthen the momentum for creation of a robust public digital infrastructure, in line with the digital India initiative.
IT/ITES
The Union Budget is positive for the IT sector with focus on digitization, skill development, innovation and research. The setting up of the National Finance Registry and Central Processing Center for companies will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability. The simplification of the KYC process and the one stop solution for identity reconciliation will make the sector more accessible. The announcement related to development of semi-conductor ecosystem will support the India’s outlook as a global manufacturing hub. The continued investment in Digital India Program, cyber security programs and with institutions such as UIDAI and MeiTy and expected to provide long-term growth of the sector.
Dipesh Kaura, General Manager, Kaspersky (South Asia)
The Indian government's growing interest in building a Technology driven Indian Economy will be a pioneering move for building world class digital structure.
In today's budget, we saw the government's major focus on Robotics, Drones, and Artificial Intelligence along with implementing a strong National Data Government Policy. This budget projects to empower the youth by focusing on new-age skills and coding. India aims to become one-stop solution and this will be a major relief for the MSME sector. During the 2023 -24 Budget, the government aims to formulate 100 labs that will be effective to develop 5G services and very evidently pictures positive growth for India.
The budget looks favorable and aims at improving the threat landscape margin in India by implementing 3 centers of excellence for Artificial intelligence. India’s growth being the highest among major economies is a powerful aspect and will definitely be able to drive the path to create a Technology driven economy.
Varun Sridhar, CEO, Paytm Money
“Union Budget 2023 reflects the government's focus on inclusive growth and digitisation. The stability of reforms will contribute to the India growth story and will positively boost the morale of capital markets. From the simplification of KYC, cap on the maximum tax rate, to increasing the rebate on income tax and strengthening our infrastructural power — there are many welcome moves that will benefit Indians.”
“The Union Budget 2023 is a progressive & far-sighted one that lays significant emphasis on supporting the growth of start-ups & proposes several measures aimed at fostering a favourable environment for startups to thrive & succeed. While there is no big-ticket announcement for the FMCE sector as a whole, there are still a few indirect positive impacts on the industry. As per the Economic survey of 2023, India is now the 2nd largest Mobile manufacturer in the World & also saw a 200% increase in rural internet subscriptions as against 158% in urban areas between 2015 & 2021. As announced in the Budget 2023, the GOI’s(Government of India) invested approach of “Reaching the last Mile” to make the remotest area connected and robust plan to leverage 5G services applications for a digitally strong tomorrow, shall further boost the internet penetration in the rural areas. This shall surely bring a new age of opportunity to the FMCE sector with promising growth due to an increase in demand for FMCE products.”
Anil Valluri, MD & Regional VP - India & SAARC, Palo Alto Networks
“It is heartening to see the continued focus of the government on technology and its efforts toward realizing its vision for a truly digital India.
Digital Public Infrastructure for the country’s agricultural, fintech, manufacturing, and healthcare industries, including their Information Technology (IT) & Operational Technology (OT) capabilities, will help usher in a new age for the sectors. This will be characterized by cutting-edge solutions that will deliver advanced farmer-centric solutions, exhaustive market intelligence, evolved Agri-firms & start-ups, and more. The provision of 5G labs across India’s top engineering institutions will help power new applications, innovations, and opportunities that will further boost the development of the high-speed network service in India. Enterprise and academia collaboration to “Make AI in India and Make AI work for India” will be instrumental in bringing the technology and its innumerable applications into the mainstream and fostering an unprecedented AI ecosystem that will benefit both organizations and individuals. This ecosystem will flourish thanks to the newly announced youth-focused skilling initiatives for AI, Industry 4.0., coding, robotics, and more.
Competent cybersecurity will be crucial to the success of these initiatives, considering our digitally transformed populace. With ransomware attacks seeing alarming highs and national critical infrastructures becoming regular targets, any further transformations may render us more vulnerable to attack. A strong focus on data governance - reflected in the Union budget’s plans to set up a National Data Governance Policy - and cybersecurity skilling, combined with a cybersecurity-first approach powered by AI & ML for devices, networks, and applications will be essential for digital India to become a reality.”
Ashish Saraf, VP and Country Director, India-Thales.
“We welcome the Government’s inclusive and growth-oriented budget. The seven priority areas including green growth targeted in the budget will certainly position India’s growth ahead of other leading economies of the world. We appreciate the focus on solidifying the technology ecosystem in the country through a set of announcements including setting up of three Centres of Excellence for Artificial Intelligence in top educational institutions, 100 labs in engineering schools for development of 5G applications and the formation of a National Data Governance Policy, among others. This paves the way for enhancing the robust tech ecosystem in the country, fostering innovation, and entrepreneurship.”
Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India
"The budget 2023 is oriented to economic growth of the country. I am sure that 33% growth in capital expenditure will result in balanced development. This is a smart move since it will help the country achieve its goal of becoming a 5 trillion-dollar economy and a global powerhouse. I believe that the announcement of setting up 100 labs to effectively develop 5G services and the vision to promote Artificial Intelligence in overall industries is a strong step by the government. This will further lead to automation in the industries which will help in propelling India’s growth and promoting smart cities. The union budget 2023 has come up with positive announcements for different sectors to support the Make In India initiative and can result in balanced growth in the near future.”
“The 2023 Union Budget has a focused aim to improve growth and job creation in the country, along with improving stability of the macro economy and encouraging youth aspirations. However, the Budget should not be seen as a board exam that happens only once in the 10th and 12th standard, respectively. It should be viewed with intention and continuity of medium to long-term policies. Within that, the focus on development, there has been increased Capex spending by another 33% to now 10Lk cr, as well as Railways, spend of 2.4lk cr. This will fuel job creation and economic cycles in core sectors of construction, steel, cement, and labour to the tune of at least 1 crore man-years of work.
Focus on PLI sectors like mobile and electronic manufacturing assembly lines creates medium to long-term assembly line, semi-skilled, and skilled jobs, which benefits both domestic and export output. Green and renewal push coupled with the scrappage of government vehicles shall significantly benefit the automobile and auto ancillary sector. To aid ease of doing business, the removal of nearly 39,000 compliances, de-criminalizing 3400 sections, Jan Vishwas Bill, as well as PAN as a common unified identifier will enhance our ranking and actual ease of doing business, thereby encouraging more private investment and FDI into India.
As shown in the Economic Survey yesterday, nearly 41% of new EPFO additions are from expert services, which include staffing and security services. It is clear that job creation is happening at the crucial bottom of the pyramid in both blue and grey-collar jobs, i.e., workers from the 10th, 12th, and diploma categories. Such personnel are transitioning from either erstwhile informal employment or rural/farm sectors, wherein the skilling ecosystem support will be key to transitioning these personnel smoothly. With this, we will be able to add another 100Mn into the formal workforce over the next decade.
The govt. has focused on skill development and healthcare investment as key initiatives- two aspects that lie at the core of employability for any country. Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the government plans to set up 30 Skill India International Centres, which will ultimately boost job creation by training the youth with new-age industry-relevant skills, including coding, AI, robotics, IoT, and the like which can boost employment growth multifold.
The finance minister today informed that the average per capita GDP is now at 1.97lac pa, the average earning of workers in informal sectors is nearly half this amount. Moving more people to formal work and increasing the per capita GDP shall create a massive amount of disposal income and private spending towards food, vehicles, entry-level homes, financial products, and better education for the next-gen, fueling another growth cycle. We are confident that this budget of capex expenditure, manufacturing push, skilling, and ease of doing business is the good stimulus required for medium to long term for India to become the 3rd largest economy by the end of the decade.”
"The 2023 Budget lays out a clear vision for India’s future with a focus on physical infrastructure, such as roads and rails, and investment in new technologies like AI to spur economic growth. The move to exempt raw materials for Li-ion battery manufacturing and emphasis on reducing carbon emissions is a strong signal that the government is committed to promoting sustainable technologies like electric vehicles. This budget is poised to drive the accelerated adoption of EVs and related technologies like chips, connectivity modules, and TCUs."
Amit Luthra, Managing Director- India, Lenovo Infrastructure Solutions Group (ISG)
"The budget underscores the importance of data infrastructure and digital transformation across sectors. Whether its data repositories or creation of data embassies, data management is here to stay. With its ‘Make AI in India,’ vision, the budget has also highlighted skilling initiatives for the youth in IoT, mechatronics, AI and robotics. This is a very welcome direction and demonstrates the tech-first approach of the government. Emerging technologies such as AI, edge and 5G have accelerated the speed at which data is generated and consumed. Together they are creating the digital architecture for industries of the future. The National Data Governance Policy will enable businesses, startups, and academia to have better access to data. I welcome this intent to create smarter technology for all.”
Ashish P. Dhakan, MD & CEO, Prama Hikvision India
“The Union Budget 2023-24 clearly has the visionary roadmap to put India on the path to become a $5 trillion economy. The seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector. It shows the government’s vision and missionary zeal for a developed India.
We welcome the growth oriented budget positively as it is aimed at furthering the cause of the Indian manufacturing industry. The Union Budget has the blueprint of a sustainable economic growth in Amrit Kaal (Amrit Kaal refers to the next 25 years (up to 2047) leading to the centenary of India's independence), backed by consistent and well-planned strategy. It also shows the strong commitment towards the electronic manufacturing sector and infrastructure development. The budget shows clear intent to offer calibrated Customs Duty Rates to provide a graded rate scheme to facilitate domestic electronic manufacturing sector.
The government's commitment to empowering the youth by introducing mandatory courses such as AI, coding, drones, IoT, 3D printing, and other soft skills under Pradhan Mantri Kaushal Vikas Yojana 4.0 and establishing of 30 Skill India international centers, will connect skilled youth with employers and leaders in the industry and encourage entrepreneurship. As an integral part of India’s fast developing electronic security manufacturing ecosystem, we are sure that this Union Budget will help to realize the vision of ‘Surakshit Bharat’ (Secure India) through the ‘Atmanirbhar Bharat’ (Self-Reliant India) roadmap.
From the security industry perspective, this is an industry friendly budget as it acknowledges MSMEs as growth engines of the economy, the Budget proposes enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation. To support MSMEs in timely receipt of payments, the Budget allows deduction for expenditure incurred on payments made to them only when payment is actually made. The Union Budget offers a solace to the MSME sector. The revamped credit guarantee scheme for MSMEs is to take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 percent.
In hindsight, the Union Budget strikes a fine balance between big capex and fiscal discipline, it will spur the growth of the Indian economy, improve the infrastructure and empower the common people.”
Ankit Agarwal, Managing Director, STL
‘Today’s budget was a much-awaited one as we were looking forward to growth-inducing changes. It is heartening to see that the Government is well-aligned with the needs of the country. I have three key takeaways from the budget 2023 which are: Capital investment in infrastructure, Empowering Rural India, and an impetus on Skilling. All three hinge on a robust digital economy as it is at the heart of all infrastructure and people-related interventions in the country and the world over.
The increase in the capital expenditure outlay by 33% to INR 10L Cr, which is 3.3% of the GDP is expected to give a major push to infrastructure and job creation. It will help the Government's CAPEX get aligned with the OECD average of 3.5% of nominal GDP. Additionally, the Government's announcement to put INR 10,000 crore per year for urban infra development will further stimulate overall economic development. For both of these, there would be an additional push towards digital infrastructure to create smart cities, impart education, and so on and so forth.
One of the most meaningful features of this budget is the Hon'ble Finance Minister. Smt Nirmala Sitharaman and the Government’s impetus on growing the agri tech industry. Almost 85% of farmers operate less than 5 acres of land. Around 36 mn hectares of agri-land have been affected by natural calamities over 6 yrs (the size of one Himachal Pradesh each year). Imagine a world where companies are able to integrate IoT sensors and analytics to improve the lives of farmers! It is an indication of a truly inclusive country in the making. Fiber technology will be one of the key steps toward digital transformation for the agriculture sector in India.
Last but not least, the pandemic has intensified the need for a tech-enabled skilled workforce. Government, training institutes, and corporates must ensure that they have a good grasp of the changing dynamics. Budget 2023 has put an important focus on skilling and training youth for the future of India and for the world. The announcement of setting up 100 labs for 5G services-based application development will tap employment potential and business opportunities in the country.
We also wholeheartedly welcome the government's decision to move in favor of the telecom Optic Fibre industry by maintaining the customs duty rate on its raw material which we believe will help the domestic industry to strengthen its position in the global arena and transform the country into a global manufacturing hub.
Post-pandemic, the approach to welfare and growth has naturally been influenced by technology and the power of digital and it is this power that we will harness to become one of the top 3 economies in the coming years.’
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