A budget proposal to use technology to bring in changes in administration across sectors and deliver citizen services is expected to benefit Indian IT companies, helping them expand their domestic business and build models that they can take globally.
“The intent shown by the government means that for the first time companies like Tech Mahindra will be able to build government, citizen and cyber security models in India and then take them outside, instead of it being the other way around,” CD Gurnani, CEO of Tech Mahindra, told ET.
Indian IT firms have traditionally built their business by exporting services to global firms at the cost of local opportunities. The IT sector contributes to over a 4th of India’s exports.
Finance minister Nirmala Sitharaman dwelt on two cross-cutting developments – radical shifts in technology such as Artificial Intelligence (AI) and Machine Learning (ML) that is disrupting traditional models and the country having the highest number of people in the productive age group.
“The new economy is based on innovations that disrupt established business models. Artificial intelligence, Internet-of-Things (IoT), 3D printing, drones, DNA data storage, quantum computing, etc, are rewriting the world economic order,” she said.
Gautam Sinha, CEO – Times Internet, said, “Budget 2020 is a promising step towards establishing India’s future as an enduring digital economy. The increased focus on improving data connectivity under Bharat Net, steps to boost the smartphone manufacturing industry and the ₹8,000 crore allocation for the National Mission on Quantum Computing & Technology will help to build better digital infrastructure to support this sector’s rapid growth.”