The finance minister Nirmala Sitharaman highlighted the need for increased technology adoption to enhance the ease of doing business, credit guarantee scheme for MSMEs and emphasis on skill development and education institution at the Union budget 2024. This will improve data and statistical records and enable informed decision-making.
The measure announced by the minister in Union budget will collectively ensure a more resilient and innovative ecosystem, benefiting both the industry and consumers.
Here are few Key Take away from Union budget2024
Focus on technology is an enabler is set to enhance our workforce’s capabilities, making them more adaptable to rapid global market changes which are witnessing skill related to artificial intelligence.
Upgrade Industrial training Institutes
To bolster India’s technology landscape Govt. will plan upgrade of 1,000 Industrial Training Institutes (ITIs) through a hub-and-spoke model, along with the alignment of course content to industry needs, reflects a proactive strategy to address the skills gap in the workforce and prepare students for the evolving job market.
Skill Development
Emphasis on skill development and education institutions well for not only the emerging workforce but also interactive technology companies.
Amongst many pointers the important one aspect remains prioritizing skilling and technology adoption and this will boost government’s economic production capabilities and growth with skilled workforce. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology
Digitalization
The vision of a Digitalized India is poised to propel our growth story forward said Sitharaman. Digitalised India will ensure competitive workforce who are ready to meet future challenges. This holistic approach will drive economic growth and ensure our youth contribute meaningfully to the nation’s development.”
Space Economy
The Union government will set up a Rs 1,000 crore venture capital fund for investments into the space economy. However, the finance minister did not elaborate on which entity will set up the fund, or how the funds will be invested.
Focus on Interactive technology
For display and interactive tech companies which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges.
MSME, eCommerce, DPI & Roadmap for ‘Vikisit Bharat’
Ecommerce export hubs will be set up to facilitate access to international markets by micro, small and medium enterprises (MSMEs) and traditional artisans. These hubs will be set up in a public-private partnership mode.
Development of population-scale digital public infrastructure (DPI) tools by the private sector in areas of credit, ecommerce, health, law and justice, logistics, MSME service delivery, and urban governance.
The credit guarantee scheme for MSMEs in the manufacturing sector, with coverage up to Rs 100 crore, is a game-changer.
This initiative will spur innovation and growth, providing critical support to homegrown enterprises and elevating India’s position in the global manufacturing landscape.
Detailed roadmap for ‘Vikisit Bharat,’ the budget emphasized the urgent need to focus on upskilling the workforce through centrally sponsored schemes. The government aims to create employment for about 4.1 crore youth over the next five years, with an allocation of ₹2 lakh crore announced by the finance minister.
Additionally, ₹1.48 crore has been proposed for skilling our citizens. This initiative aims to skill 20 lakh youth over the next five years, with 1,000 industrial training institutes being upgraded to meet industry skill requirements. This investment underscores the government’s commitment to making the workforce industry-ready and globally competitive.
These efforts will be complemented by the private sector, providing crucial internship opportunities. The announcement of 1 crore youth gaining internships in the top 500 firms aims to offer real-world experience and corporate exposure, essential for developing a skilled workforce. With emerging technologies like Generative AI transforming industries, this initiative will help close the gap between job requirements and skills.
Union Budget 2024 has received widespread approval from the technology sector. Leaders across various segments of the industry have praised the government’s focus on skill development, support for MSMEs, and initiatives to boost manufacturing and innovation.
