Budget 2024: How India’s Interim Union Budget Focuses on AI for All

• Blockchain Council
• September 13, 2024

In a visionary move, Indian Finance Minister Nirmala Sitharaman presented the Interim Union Budget 2024-25 on February 1, highlighting a groundbreaking focus on democratizing Artificial Intelligence (AI) for all sectors of the Indian economy. The budget not only addresses fiscal concerns but also signifies a pivotal step towards harnessing the potential of AI to transform India into a technological powerhouse.

As the world grapples with the ever-evolving landscape of technology, India has recognized the paramount importance of AI in driving economic growth, innovation, and social development. The 2024 budget signifies a resolute commitment to democratizing AI and ensuring that its benefits reach every corner of the nation.

One of the standout features of the budget is the allocation of a monumental ₹1 Lakh Crore fund for research and innovation. This significant investment underscores India’s determination to nurture homegrown talent, foster innovation, and position the nation as a global leader in AI development.

India’s PM Narendra Modi aptly summarized the budget’s spirit, stating, “This budget has a reflection of the young aspirations of a young India. Two important decisions were made within the Budget. For research and innovation, a fund of ₹1 Lakh Crore has been announced.”

The budget’s focus on AI extends to various sectors, including agriculture, healthcare, education, and infrastructure, with a clear objective of enhancing productivity, efficiency, and competitiveness.

To support India’s rapidly growing infrastructure needs, FM Nirmala Sitharaman has allocated ₹11,11,111 crore, an 11% increase from the previous fiscal year. This substantial investment will not only create essential infrastructure but also drive job opportunities for the youth, aligning with PM Modi’s vision of a ‘sweet spot’ for India’s capex and infra spending.

Despite these bold investments, the budget maintains fiscal prudence. The fiscal deficit target for FY25 stands at 5.1%, lower than expected, demonstrating the government’s commitment to responsible financial management. This fiscal responsibility ensures that funds are allocated efficiently, especially in the AI sector, where research and development require careful planning.

Efforts to boost farmers’ income are being accelerated, with a focus on reducing fertilizer imports and subsidies through the promotion of nano DAP. Moreover, the government is actively encouraging private investment in post-harvest activities, paving the way for modernization in the agricultural sector.

Industry leaders from various sectors have applauded the budget’s visionary approach to AI and its potential to drive India’s growth in the coming years.

Jayesh Jain, Group CFO of Balanchero India, praised the budget’s transformative path towards ‘Viksit Bharat’ by 2047, highlighting the significant rise in average real income as a catalyst for economic empowerment.

Dheeraj Arora, Managing Director & CEO of HRIPL, commended the budget’s emphasis on achieving a harmonious blend of economic growth and sustainable development.

Kalyanram Udathu, CEO of Enerparc Pvt. Ltd., lauded the budget’s milestone initiative for solar energy adoption, which aims to solarize 1 crore households and provide free electricity, thereby accelerating renewable energy adoption.

Naveen Tewari, Founder & CEO of InMobi Group, extended commendation to the government for its forward-looking budget, emphasizing research, innovation, and sustainable technology.

The Interim Union Budget 2024-25 presents a visionary roadmap for India’s economic transformation through AI. With a historic investment in AI research and innovation, a focus on key sectors, and fiscal responsibility, the budget is poised to usher in an era of AI-driven prosperity, ensuring that the benefits of technology are accessible to all citizens. As India positions itself as a global AI leader, the journey towards ‘Viksit Bharat’ by 2047 gains momentum, promising a brighter and more technologically empowered future for all.