Budget 2024: Tech Boost May Help Cybersecurity

The Union Budget 2024-25 outlined nine priorities aimed at generating ample opportunities and fostering growth across various sectors.

by Samiksha Jain July 23, 2024

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Indian Finance Minister Nirmala Sitharaman presented a record seventh consecutive Budget on July 23 for the fiscal year 2024-25, surpassing the previous best of former Prime Minister Morarji Desai. This Budget 2024 is the first under the BJP-led NDA government since its re-election in June.

The Union Budget 2024-25 outlined nine priorities aimed at generating ample opportunities and fostering growth across various sectors: Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Services, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development, and Next Generation Reforms.

Key Priorities of the Union Budget 2024

1. Productivity and Resilience in Agriculture
2. Employment and Skilling
3. Inclusive Human Resource Development and Social Justice
4. Manufacturing and Services
5. Support for the Promotion of MSMEs
6. Urban Development
7. Energy Security
8. Infrastructure
9. Innovation, Research and Development

Understanding the Union Budget 2024

The Union Budget 2024 is a comprehensive financial statement presented annually by the Indian government. It outlines the government’s revenue and expenditure for the upcoming fiscal year and sets the economic agenda.

The India Budget 2024 plays a crucial role in shaping the country’s economic policies, addressing key areas such as taxation, infrastructure development, social welfare, and national priorities. It is a pivotal event that impacts various sectors and the overall economic trajectory of the country.

The comprehensive measures and incentives introduced aim to address current economic challenges and lay the foundation for a resilient and prosperous future. The abolition of the angel tax underscores the government’s commitment to supporting startups and creating a dynamic business environment, playing a crucial role in the present budget 2024.

Budget 2024-2025: Abolition of Angel Tax

A major highlight of the Budget 2024 was the announcement that the angel tax would be abolished for all investors. This tax, imposed on the funding startups receive from angel investors when the investment exceeds the fair market value of the startup’s shares, was introduced in 2012 to prevent money laundering through investments in unlisted companies at inflated valuations. The difference between the amount received and the fair market value was considered as income and taxed accordingly.

For startups, this tax posed significant challenges, as early-stage investments are often based on future potential rather than current value, making it difficult to justify the valuations. Consequently, startups faced substantial tax liabilities, which could hinder their growth and deter investors. The removal of the angel tax has been a longstanding demand from venture capitalists and industry experts who argued that its abolition would foster a more conducive environment for startups in India.

Benefits of Abolishing Angel Tax

The scrapping of the angel tax will come as a relief for investors and startups alike. By eliminating this tax, the government aims to:

1. Encourage Investment in Startups: Removing the angel tax will attract more investments into startups, providing them with the necessary capital to innovate and grow.
2. Boost Entrepreneurial Ecosystem: This move is expected to stimulate the entrepreneurial ecosystem in India, making it easier for startups to secure funding and scale their operations.
3. Promote Economic Growth: By fostering a vibrant startup culture, the abolition of the angel tax will contribute to job creation, technological advancements, and overall economic development.

India Budget 2024 for Women

Sitharaman also announced that the government is allocating over ₹3 lakh crore for schemes benefiting women and girls. This allocation aims to enhance women’s participation in the workforce and drive inclusive growth. As part of this initiative, the government will set up women-specific skilling programs designed to equip women with the necessary skills to thrive in various sectors.

India’s female labor force participation rate climbed to 24 percent in Q2FY24, and these measures are expected to further boost this upward trend. These initiatives are anticipated to create more opportunities for women, fostering an environment where they can contribute significantly to the nation’s growth and prosperity.

The 2024 budget speech by India’s Finance Minister, Nirmala Sitharaman, outlines several initiatives that could impact the cybersecurity sector:

• Innovation and R&D: Increased funding for research and development, including a new financing pool of ₹1 lakh crore, encourages advancements in technology, potentially benefiting cybersecurity innovations.
• Digital Public Infrastructure: Development of applications for credit, e-commerce, education, health, law and justice, logistics, MSMEs, services delivery, and urban governance, enhances digital security needs across sectors.
• Employment and Skilling: Schemes focusing on skilling and internships in top companies can produce a more cybersecurity-aware workforce.
• Next Generation Reforms: Emphasis on improving productivity through technology and digitalization, which can bolster the cybersecurity infrastructure.

Expert Opinions on the Overall Budget 2024-2025

Experts have praised Finance Minister Nirmala Sitharaman’s Union Budget 2024-25 for its comprehensive approach and strategic focus on key sectors. Economists and industry leaders commend the emphasis on inclusive growth, infrastructure development, and innovation.

“The Union Budget 2024-2025 demonstrates a forward-thinking approach by the Indian government, particularly in its focus on skilling and employment, which is crucial for the rapidly evolving cybersecurity sector.”

– Mandar Patil, SVP – META, SAARC, and ASEAN, Cyble Inc.

“The emphasis on digital public infrastructure and support for MSMEs aligns perfectly with the needs of the cybersecurity industry, fostering innovation and resilience. The significant tax reforms and relief measures are also commendable, as they will attract more investments and boost the startup ecosystem, further driving growth in cybersecurity. Cyble welcomes these initiatives and looks forward to contributing to a more secure and digitally empowered India,” Patil added.

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Analyzing the budget, Rohit Shinde, Business Head – Cyber SecurityBusiness Head – PetaDot said, “My analysis of the Union Budget 2024 reveals several key points. MeitY’s budget has increased by 40% to ₹21,000 crore, with a significant rise in cybersecurity funding, doubling by ₹750 crore. This boost underscores the emphasis on enhancing cybersecurity to support growth, job creation, and skill development. There is also a focus on grassroots training and awareness around data protection and cyber fraud risks.

The budget recognizes the impact of startups and the need for collaborative initiatives between public and private sectors, covering technology areas such as AI, IoT, and blockchain. Support for “DeepTech” innovations highlights the need for robust cybersecurity solutions to protect these technologies. Overall, there is optimism that the budget will drive industrial growth and job opportunities, with a strong emphasis on education and foundational training to build a resilient digital infrastructure.”

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“India’s Union Budget 2024 underscores a strong commitment to cybersecurity under the “Viksit Bharat Vision.” Key highlights include a significant increase in the cybersecurity budget to ₹750 crore, reflecting a focus on protecting critical infrastructure and advancing technologies like AI. The budget promotes the development of indigenous cybersecurity solutions to reduce dependence on foreign technologies, enhancing national security and minimizing risks. Strategic initiatives such as the National Cyber Coordination Centre and Cyber Surakshit Bharat are bolstered to improve internal and external security measures. Recent cyberattacks on critical infrastructure emphasize the need for robust protection. Overall, the budget demonstrates India’s dedication to securing cyberspace, fostering innovation, and strengthening critical infrastructure,” Santosh Tripathi, Director – Information Security & Compliance, Virsec.

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“We at Indusface commend the government for recognizing the critical role of technology and innovation in driving economic growth. The budget’s emphasis on the development of Digital Public Infrastructure applications across various sectors such as credit, e-commerce, education, health, law and justice, logistics, MSME services delivery, and urban governance demonstrates a forward-thinking approach. However, while these initiatives are promising, we believe that a more pronounced focus on cybersecurity is essential. As digital transformation accelerates, robust cybersecurity measures are crucial to safeguard our nation’s digital infrastructure. We urge the government to allocate dedicated resources and policies to bolster our cybersecurity framework, ensuring that our technological advancements are secure and resilient,” Ashish Tandon, Founder and CEO, Indusface.

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“We are pleased with the Union Budget 2024’s focus on digitalization and data governance. The substantial investment in digital infrastructure and encouraging private sector involvement presents exciting opportunities. At Fulcrum Digital, we are committed to leveraging our expertise in AI and emerging technologies to support these initiatives.

The emphasis on improving data collection, processing, and governance aligns perfectly with our commitment to helping businesses make more informed decisions. Our work across various industries, including financial services, insurance, and education, positions us well to contribute to these efforts. By utilizing sectoral databases under the Digital India mission, we aim to enhance access to resources and services for everyone.

We also applaud the government’s initiative to set up working women hostels and the allocation of over Rs 3 lakh crore for schemes benefiting women and girls. This is a notable step towards promoting gender diversity and inclusion, as these efforts are crucial in creating a more diverse industry.

The budget’s focus on easing business operations and incentivizing states for business reforms is a welcome move. We look forward to playing a part in driving innovation and efficiency, helping India move towards a more digital and data-driven future,” Sachin Panicker, Chief AI Officer, Fulcrum Digital.

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“One of the biggest challenges that organizations face from a cybersecurity perspective is skilling of resources. It is reassuring to see the Government’s commitment to developing a skilled workforce with a provision of Rs 1.48 lakh crore being made for education, employment, and skilling. With this, we are confident that we will be able to create a pool of talented resources that can address India’s growing cybersecurity challenges.

At the same time, the Union Budget 2024 emphasized stepping up of adoption of technology towards digitalization of the economy. Having the right talent, to be able to support this vision will be critical to enabling the Government to achieve its goal of ViksitBharat @2047.

Additionally, the Government has also taken a positive step towards increasing the presence of women in the workforce. Through their various initiatives, we are hopeful of seeing a reimagined industry, one driven by diversity and inclusion,” Sunil Sharma, Vice President-Sales, Sophos India & SAARC.

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“The Union Budget 2024 marks a significant step forward in shaping India’s future, and at Magellanic Cloud, we are truly inspired by the bold measures outlined to drive innovation, create jobs, and strengthen infrastructure.

The proposed schemes to incentivize hiring first-time employees and the introduction of a new credit guarantee scheme for MSMEs are steps in the right direction. These initiatives will not only bolster the manufacturing sector but also enable MSMEs to thrive without the constraints of collateral, thereby fueling innovation and job creation. The increase in Basic Customs Duty (BCD) on telecom equipment, particularly PCBA, presents a challenge for the drone manufacturing industry. However, this shift underscores the need for us to intensify our focus on local sourcing and innovation to mitigate cost impacts and ensure sustainable growth.

Additionally, the ₹11 lakh crore allocation for infrastructure development and investment-ready industrial parks will enhance our operational efficiencies and capabilities. The support for R&D through the Anusandhan National Research Fund further aligns with our commitment to innovation and growth.

Moreover, the allocation for employment and skilling under the PM Package and the comprehensive internship scheme will nurture the next generation of talent, which is vital for sustaining our industry’s growth.

As we navigate these changes, Magellanic Cloud remains committed to leveraging these opportunities to drive excellence and contribute to India’s technological and economic advancement. In alignment with the vision of a “Viksit Bharat,” we are dedicated to playing our part in building a developed and prosperous India,” Joseph Sudheer Reddy Thumma, MD & CEO, Magellanic Cloud.

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“We welcome the Union Budget FY25 announcement by Finance Minister Nirmala Sitharaman, which presents a holistic approach to boosting employment, skilling, and infrastructure development. The allocation of ₹2 lakh crore towards employment and skilling schemes, coupled with groundbreaking initiatives for women empowerment and an ambitious internship program, will create a robust talent pipeline vital for the industry.

The reduction in corporate tax rates, alongside the substantial ₹11 lakh crore allocation for capital expenditure, reflects a favourable pro-business environment that will drive innovation and attract investments. As an ER&D services company, we are particularly excited about the focus on digital public infrastructure and the establishment of the Anusandhan National Research Fund. These initiatives will foster a culture of innovation and elevate India’s position in the global R&D landscape.

Additionally, the development of investment-ready industrial parks promises to create new opportunities for technological advancements. I am confident that these measures will significantly contribute to India’s journey towards becoming Viksit Bharat,” Amit Chadha, CEO and Managing Director, LTTS.

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“The 2024 budget speech by India’s Finance Minister, Nirmala Sitharaman, outlines several initiatives that could impact the cybersecurity sector. Increased funding for research and development, including a new financing pool of ₹1 lakh crore, encourages advancements in technology, potentially benefiting cybersecurity innovations. The development of applications for credit, e-commerce, education, health, law and justice, logistics, MSMEs, service delivery, and urban governance enhances digital security needs across sectors. Schemes focusing on skilling and internships in top companies aim to produce a more cybersecurity-aware workforce. Emphasis on improving productivity through technology and digitalization can bolster the cybersecurity infrastructure. Overall, the budget aims to create a robust digital ecosystem with a focus on research, innovation, and skill development, indirectly boosting the cybersecurity sector,” Col Subhajeet Naha, Retd, Co-Founder and CTO, Protecte Technologies.

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“The government’s commitment to energy security and sustainability is evident in today’s announcements. They are focusing on employment and sustainability with a policy document on energy transition pathways. The auction of offshore mineral blocks will leverage existing exploration efforts, providing essential metals like lithium, crucial for reducing carbon footprints. Introducing green hydrogen into our manufacturing processes will significantly lower our carbon impact. Since hydrogen is part of our raw materials, this change is vital. Coal gasification will enhance self-sustainability and reduce import dependency. We are committed to ensuring that all our practices support a reliable and eco-friendly mining supply chain. These initiatives collectively demonstrate our dedication to a sustainable and resilient future for India,” Sanjay Choudhari, Chairman at SBL Energy Limited.

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Overall, the budget aims to create a robust digital ecosystem with a focus on research, innovation, and skill development, indirectly boosting the cybersecurity sector.

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