As India aims to become a developed nation by 2047, marking 100 years of independence, the IT sector is set to play a crucial role. From services for the world to services for Indian citizens, India’s IT sector has been the backbone of the movement that has made technology more accessible to people worldwide.
We are looking at new challenges in the AI and 5G eras. AI and Deep Tech are no longer fictitious elements found in sci-fi. Digital public infrastructure is not just a luxury for the first world but an essential government function pioneered by the developing world. With initiatives like UPI, digital wallets, and digital vaults, India is leading the way. However, the upcoming 2024 Union Budget needs to bolster this vision with strategic investments and reforms that will drive innovation, enhance infrastructure, and foster economic growth.
Vision 2047: A Developed India
Srividya Kannan, Founder and CEO of Avaali Solutions, highlights the importance of the IT industry in India’s future. “As we envision ‘Viksit Bharat’ by 2047, India aims to become a developed nation through comprehensive socio-economic reforms. Central to this vision is the focus on manufacturing, emphasizing sectors such as machine learning, artificial intelligence, and renewable energy. Global Capability Centers (GCCs) play a pivotal role in the IT industry, currently employing 1.66 million people and expected to rise to 2 million by 2026 with 1900 centers, up from 1580.”

Several key recommendations are being proposed for the Union Budget 2024 to achieve these ambitious goals. These include enhancing export incentives, developing tier 2 locations, extending benefits to GIFT City, fostering innovation, advancing skill development, revising safe harbor rules, and improving infrastructure and GST policies.
Kannan elaborates, “Prioritizing cybersecurity, hyper-scale computing, and AI will position India as a preferred destination for IT staffing and sourcing solutions. Affordable data rates and strategic partnerships with global firms will enhance India’s appeal as an IT hub. Achieving equilibrium between input and output costs and fostering a human-centered culture are essential. The journey towards ‘Viksit Bharat’ by 2047 is ambitious and achievable. With strategic focus and comprehensive reforms, India is poised to emerge as a global leader in various sectors, creating a prosperous future for all its citizens.”
What do Fintech startups say?
Amjad Raza Khan, CEO of Cashaa, shares his expectations for the upcoming budget. “We are hoping for the same things as we were with the Interim Budget in February 2024. Rationalization of capital gains tax down from the current 30% and the TDS tax rate of 1%. Treating crypto at par with other financial asset classes like equity. A well-defined regulatory framework for crypto in the country makes crypto a suitable investment option for the commoner and spurs industry investment in the crypto sector.”
Key focus areas:
By 2030, India’s digital economy is expected to touch the $1 trillion mark, contributing almost 20 percent to the country’s GDP. Consistent investment in the right technologies at the right time is essential to maintaining this momentum. Ranjana Adhikari, Partner, Technology, Media, & Telecom Law Practice Group at IndusLaw, writes:
“Based on ongoing initiatives and past spending trends, here are some key expectations from the upcoming budget:
1. Support for Digital Public Infrastructure (DPI): The Budget will continue supporting India’s DPI, including Aadhaar, UPI, and DigiLocker, through expanded use cases and incentives. This is evident from the recently released ‘Report of India’s G20 Task Force on Digital Public Infrastructure’.
2. Enhancing the Skill India Mission: To tackle unemployment, the Budget is likely to increase the outlay for the Skill India Mission, which will focus on upskilling and training in coding, AI, robotics, IoT, 3D printing, and drones.
3. Focus on AI and Deep Tech: The government is anticipated to enhance its focus on AI and deep tech. Initiatives like ‘Make AI for India’ and ‘Make AI Work for India’ will be supported through capacity building, R&D, and funding of AI applications in healthcare, agriculture, education, smart cities, mobility, and governance. This will likely be facilitated through the Startup India Seed Fund Scheme, the Atal Innovation Mission, and the NIDHI scheme. Public-private partnerships in deep-tech R&D may also be considered.
4. Cybersecurity Investments: Cybersecurity is expected to remain a critical focus area. The interim budget nearly doubled the funds for cybersecurity from INR 400 crores in 2023–24 to INR 759 crores, indicating continued emphasis in the upcoming budget.”
The 2024 Union Budget is pivotal in India’s journey towards becoming a developed nation. By focusing on IT services, innovation, and comprehensive reforms, India is well-positioned to emerge as a global leader and create a prosperous future for all its citizens.