IT sector cheers Union budget 2020 for focusing on AI, digitisation

The thrust on technology and digitisation during the current budget has been welcomed by the technology sector. The budget has recognised the importance of analytics, IoT (Internet of Things). Machine Learning (ML), Artificial Intelligence (AI) besides other technologies, and a policy has also been announced to set up data centre parks throughout the country.

There has been also mention of widespread digitisation as fibre to home will link over 1,00,000 gram panchayats during the Financial Year (FY) 2020-21 through BharatNet. The government has allocated Rs 6,000 crore for this initiative. Besides, the budget has also allocated Rs 8,000 crore to set up National Mission on Quantum Computing and Technology.

“It is good to see technology find a significant mention in the budget. If done correctly, initiatives such as setting up data centre parks, fibre to home and investments in quantum computing and other technologies have the ability to create a digitally connected India. However, the complete proof will always be in the execution of all these initiatives,” pointed out Abhishek Kothari, co-founder at FlexiLoans.com.

Experts have found that budget proposals to build data centres will go a long way in further pushing the technology sector in the country. “With the finance minister accepting aggregators displacing regular businesses, the new policy to set up data centre parks throughout the country is a laudable move and will gain many start-up heroes to make a mark when India is embracing technology at various levels and taking big leads,” said Mehul Bhatt, CEO, FloCareer a Bengaluru-based technology start-up.

Some experts also believe that enabling the private sector to build data centre parks throughout the country would help in on-demand access to ICT infrastructure. “Building new data centres will not only will help in the on-demand access to the the ICT infrastructure, it will also cater to Indian regulatory requirements and will also drive scalability for businesses in India,” remarked Deepak Mittal, CEO and co-founder, TO THE NEW, a software development company.

Similarly, a few experts feel that setting up of data centres will also help in securing data properly. Data parks in India is a welcome move as this will ensure enhanced data safety because servers and allied infrastructure are likely to be hosted in India and globally benchmarked practices of data encryption will ensure that customers’ data is not misused or profited from as the momentum around Data Protection Law gathers steam. This may just be a precursor to that. While we await for the finer print, programmes like knowledge clusters should help younger technology companies in securing their IP and safeguarding their core product codes. It will also motivate them to apply AI, ML and deep tech for more refined solutions for existing problems in the country,” observed Kalpit Jain, Group CEO, Netcore Solutions, a SaaS based IT product company.

The industry was pleased to see Artificial Intelligence adoption emphasised in the budget by the government. There is a tremendous opportunity in India to reskill existing and develop new AI talent for jobs of the future. It's also equally important to bring in regulations to sure ethical use of AI as part of this development process. The finance minister’s announcement on creating programmes with local bodies to provide opportunities for young engineers is a positive move. 

However, some experts feel that though a lot has been announced in the budget, giving thrust to the technology sector in India, more could have been done to alleviate the financial stress in the telecom sector. “In budget 2020, technology has been clearly recognised as both a disruptor and enabler of new models of business and lifestyles. The government is looking to the future and the next generation of quantum technologies with the announcement of Rs 8,000 crore for further R&D in this field. Start-ups are receiving due attention with measures announced to not just provide early life funding from the government to support ideation and development, but also ensure that innovation and associated IP can be protected. The finance minister also proposed a scheme to promote the manufacturing of electronics and semi-conductor packaging in India. On balance though, a few more announcements of measures to alleviate the financial stress of the telecom sector, which is the underlying platform for most digital innovation, would have been timely,” said Satya Easwaran, partner and leader, Markets Enablement and Leader Technology, Media and Telecom, KPMG in India.

A few representatives from IT services companies have also welcomed the budget's push for technology. “From the perspective of the engineering and technology services industry that thrives on innovation, the government’s move to re-revitalise the IP filing and protection process is a welcome step. Additionally, the thrust on quantum computing as a key focus promises to further consolidate India’s position in the global digital transformation landscape. The announcement of proposal to set up data centres is also a step in the right direction in terms of acknowledging the importance of data and data analytics. Overall, the budget puts the role of technology in limelight, spanning across all the three focus areas as announced by the government, namely aspirational India, economic development and a caring society,” remarked Dr. Keshab Panda, CEO and MD, L&T Technology Services.

Some experts are also of the opinion that a burgeoning digital infrastructure of India as announced in the budget will need a strong cybersecurity framework to support it. “Since it has allocated Rs. 99,300 crore to the education sector and Rs. 3,000 crore for skill development itself, a good way to realise India's digital vision could be by working on the cybersecurity front from the very beginning. The government may want to cover its technology initiatives with avant-garde simulation-based cyber security training platforms for proposed cyber forensic university and skill India campaign. This will help India in generating millions of jobs for the youth and also strengthening national security,” said Rakesh Kharwal, managing director, India-South Asia and ASEAN, Cyberbit.