In a significant move towards fostering innovation and technological advancement, Finance Minister Nirmala Sitharaman unveiled key highlights in the Interim Budget 2024.
One standout announcement is the allocation of a massive ₹1 trillion corpus dedicated to financing research in technology.
Let’s delve into the details of this groundbreaking initiative and its potential impact on India’s technological landscape.
Understanding the ₹1 Trillion Corpus Technology Research in Interim Budget
Finance Minister Sitharaman emphasized the importance of innovation as the “foundation of development.” To facilitate this, the government has allocated a whopping ₹1 lakh crore with a unique approach – a 50-year interest-free loan.
This corpus aims to provide long-term financing and refinancing options with extended tenors and low to nil interest rates.
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The primary goal is to incentivize the private sector to scale up research and innovation significantly, particularly in emerging and sunrise domains.
Strengthening Deep Tech Technologies
In addition to the financial boost, Sitharaman announced the introduction of a new scheme aimed at strengthening deep tech technologies for defense purposes and achieving self-reliance (atma nirbharta).
The emphasis on deep tech underscores the government’s commitment to harnessing advanced technologies for national security and self-sufficiency.
Jai jawan, Jai kisan, Jai vigyaan, Jai Anusandhan
During her budget speech, Sitharaman recalled the evolution of former Prime Minister Lal Bahadur Shastri’s famous slogan “Jai jawan, jai kisan.”
This slogan, expanded by former Prime Minister Atal Bihari Vajpayee to include “Jai vigyaan,” and further modified by Prime Minister Narendra Modi to “Jai Anusandhan (research),” reflects the evolving importance of research and innovation in the country’s growth trajectory.
Encouraging Private Sector Participation
The Finance Minister’s strategic approach involves encouraging the active involvement of the private sector in research and innovation.
By providing a significant financial incentive through the interest-free corpus, the government aims to create a conducive environment for businesses to invest in cutting-edge technologies.
This, in turn, is expected to drive economic growth and position India as a global technology hub.
Digital Public Infrastructure and Financial Savings
Sitharaman also highlighted the government’s achievements in digital public infrastructure. Through direct benefit transfer to PM Jan Dhan accounts, a staggering ₹34 lakh crore has been disbursed to beneficiaries, resulting in a remarkable ₹2.75 lakh crore in savings by plugging leakages.
This underscores the government’s commitment to leveraging technology for efficient governance and financial management.
Skill India Mission Impact
The Finance Minister provided insights into the success of the Skill India Mission, which has trained 14 million youth and reskilled and upskilled an additional 5.4 million.
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This initiative aligns with the government’s focus on enhancing the skill set of the workforce, making them better equipped for the evolving demands of the job market.
eNAM Integration in Agriculture
Sitharaman shared achievements in agriculture, noting the integration of 1,361 mandis in the electronic National Agriculture Market (eNAM).
This integration has provided services to 18 million farmers, with eNAM witnessing a substantial trading volume of ₹3 lakh crore.
The digitization of agricultural markets is a crucial step towards modernizing the sector and ensuring fair returns for farmers.
Conclusion
The announcement of a ₹1 trillion corpus for technology research in the Interim Budget 2024 marks a significant stride towards fostering innovation and technological advancement in India.
The government’s focus on deep tech, coupled with a strategic financial approach, aims to propel the country into a leadership position in the global technology landscape.
As the private sector actively engages in research and innovation, the long-term impact on economic growth and national development is expected to be substantial.
The Interim Budget emphasis on leveraging technology for governance, financial efficiency, and skill development further reinforces the government’s commitment to a technologically empowered and self-reliant India.
