What's in store for Digital India in the Union Budget 2024?

India anticipates that the upcoming budget will prioritize the digital economy, research and development, and advancements in the logistics sector to propel the country towards its $7 trillion economy goal. Union Finance Minister Nirmala Sitharaman, presenting the first full budget of PM Narendra Modi-led NDA government's third term, should focus on both digital and physical infrastructure to drive growth and innovation, according to industry leaders.

“To achieve a $130 billion industry by 2030, the budget should prioritize research and development, following the example of last year’s Promotion of Research & Innovation Program (PRIP) Scheme,” stated Srivardhan Khemka, Director of Sanjivani Paranteral Ltd. He emphasized the need for credit schemes and policies to support international trade, which is crucial for the pharmaceutical sector's reliance on exports. Simplifying access to international markets will strengthen India's role in the global pharmaceutical industry.

To boost industrial activities, there is also an expectation for enhanced physical infrastructure, particularly through the creation of multiple logistics hubs. Mahesh Fogla, Executive Director of Patel Integrated Logistics, highlighted the importance of implementing policies and developing infrastructure that promote the growth of the aircraft leasing sector in India, addressing fleet management and expansion. He called for the budget to prioritize investment in constructing new airports and leveraging tier II airports to foster regional aviation development.

In addition to physical infrastructure, there is a significant expectation for a push towards digital infrastructure, especially to help micro, small, and medium enterprises (MSMEs) secure the necessary funding for their operations and expansions. Sundeep Mohindru, Promoter & Director of M1xchange, pointed out that most MSMEs are not traditionally credit-ready, and banks lack the infrastructure to reach them. Therefore, stronger digital methods of credit assessment can bridge the credit gap, ensuring MSMEs are credit-ready and making risk assessment easier for financial institutions.