India has increasingly utilised technology as a force for growth and development, and Budget 2024 continues this trend
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This essay is part of the series "Budget 2024-25"
On 23 July 2024, Minister of Finance (FM) Nirmala Sitharaman presented the Union Budget 2024. A key focus area in the Budget is the increasing importance of and reliance on technologies and data to support the growth of the country. The FM highlighted India’s experience with leveraging technology for furthering productivity and reducing inequality in the last decade. She noted the importance of public investments and private innovation in improving digital infrastructure, which, in turn, has improved the lives of the common people. She emphasised that technology is an enabler of improving total factor productivity and bridging inequality, and that the country will continue to increase adoption of technology and the digitalisation of the economy.
Under the Budget 2024, the Ministry of Electronics and Information Technology (MeitY) has been allocated a budget of INR 21,936 crores as compared to INR 16,549 crore in the previous year. The MeitY implements the DIGITAL INDIA Programme, INDIAai Mission, National Informatics Centre, and the Production Linked Incentive Scheme, among other initiatives focusing on technology, data, cybersecurity, and other digital solutions.
Under the Budget 2024, the Ministry of Electronics and Information Technology (MeitY) has been allocated a budget of INR 21,936 crores as compared to INR 16,549 crore in the previous year.
Budget 2024 provides for incorporating technology and digital solutions in the following key areas:
The Budget provides for setting up of Digital Public Infrastructure (DPI) at scale to improve the services sector and further productivity gains, innovation and business opportunities. Some of the sectors where such applications are planned are e-commerce, health, law, urban governance and service delivery.
There are plans for setting up of an Integrated Technology Platform for an Inter-Blockchain Communication Protocol (IBC) ecosystem that would help facilitate timely outcomes under the statute and promote consistency, transparency and better oversights.
The Budget provides for implementation of DPI for agriculture for coverage of farmers and their lands in the next three years. This will provide for a digital crop survey for Kharif crops and the data of six crore farmers will be added to the farmer and land registries.
Several technology-based solutions would be adopted in relation to land, such as the assignment of Bhu-Aadhaar for all lands, digitisation of maps using Geographic Information System (GIS) mapping, and the development of IT-based systems for record management.
A one-stop solution is being developed by integration of the eShram portal with other portals to provide a wide array of services to labour. This database would aim to provide skill requirements and available job roles as well as connect the job-seekers with potential employers.
Improving data and statistics is an important priority for Viksit Bharat. The Budget provides for the use of various sectoral databases and advanced technological tools for improving data governance, collection, and processing, as well as management of data and statistics.
Other areas of focus include the use of technology to support the MSME sector, the Critical Minerals Mission, space, and nuclear energy.
There is a major focus on skilling, though bridging the digital divide is not explicitly mentioned. However, a reduction of the Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Board Assembly (PCBA), and mobile chargers to 15 per cent can help make these devices more affordable for consumers, ultimately improving device ownership and strengthening efforts to close the digital divide in the country.
India has witnessed a massive digital transformation in the last decade or so. With Aadhaar and IndiaStack, the world's largest biometric ID system, and the world’s largest open API, India has successfully onboarded billions of individuals and businesses and supported financial and social inclusion. To support this growth, there has been a steady growth in the budget for MeitY as demonstrated below:
Figure 1: MeitY's Budget (In Crore (Rs)) Source: Author’s own, based on Annual Union Budget from 2017-2024
While this data does not cover implementation of all tech-based solutions in the country, the increasing trends in MeitY’s budget clearly demonstrates the government’s vision and efforts towards increasing digitalisation and the growth of information technology and electronics industries.
Digital transformation and the increasing adoption of technology can have a serious impact on society and the economy at large; the development of inclusive tech-enabled solutions can help foster sustainable growth in multiple sectors. By developing DPI for supporting sectors such as agriculture, health and urban governance, India can accelerate its progress towards the 2030 Agenda for Sustainable Development and the implementation of its Sustainable Development Goals.
Digital transformation and the increasing adoption of technology can have a serious impact on society and the economy at large; the development of inclusive tech-enabled solutions can help foster sustainable growth in multiple sectors.
As a word of caution, it is also important to ensure that the benefits of this tech revolution are not concentrated to a limited few, but are distributed evenly. It is important to bridge the digital divide to ensure that people in vulnerable situations are not left out of the benefits of technology. Further, it is important to ensure that the tech-based solutions are secure, and are covered by appropriate data governance structures. That said, India has increasingly utilised technology as a force for growth and development, and Budget 2024 continues this trend.
Basu Chandola an Associate Fellow at the Observer Research Foundation.
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Basu Chandola is an Associate Fellow. His areas of research include competition law, interface of intellectual property rights and competition law, and tech policy. Basu has ...
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