Union Budget 2023-24 takes AI-forward approach to technology and fintech development

The Budget has been a watershed for the technology and fintech industry in more ways than one. Artificial Intelligence (AI) and innovative technology applications are one of the big priorities in this Budget, and with this, the government is sending a clear message about the importance of technology for the country’s future. The Budget’s push for 5G, artificial intelligence, digital transformation, online payment, and SaaS platforms are going to boost innovation. As the finance minister rightly said, the government’s vision for Amrit Kaal includes a technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. Promoting digital payments One primary move that continues is the allocation of Rs 1,500 crore in the Budget to promote digital payments. This remains a key positive for the fintech sector, as it provides support to banks to further augment and strengthen the digital payment ecosystem. Three centres of excellence for AI A key initiative in this Budget is the setting up of three centres of excellence for Artificial Intelligence (AI). This is a huge positive step toward boosting the development and application of AI in the country with the aim to ‘make AI in India and make AI work for India.’ By partnering with leading industry players and conducting interdisciplinary research, these centres will help develop cutting-edge AI applications and solutions in key areas such as agriculture, health, and sustainable cities. This will help to create a stronger AI ecosystem in India and enable innovative applications in AI. It will also provide opportunities for individuals to receive high-quality education and training in AI, thus building a strong pool of human resources. Labs for 5G applications The development of 100 labs for 5G applications in engineering institutions is a significant step towards advancing the development and application of 5G technology in India. It will also create opportunities for collaboration between academia and industry, as well as between different research groups. This will help to speed up the development of new 5G applications and bring them up to the market quickly. The support and seeding of digital labs are a must in this tech-driven era. This helps research centres develop innovative ideas and products not only for the fintech sector but for the business ecosystem. Proposals for PAN, DigiLocker to boost public infrastructure  The use of the PAN as a common identifier across various government agencies will streamline processes and make it easier for innovation in this field. The Budget proposals for a strong digital public infrastructure provide a solid foundation for fintech services to thrive. Expanding the scope of documents in DigiLocker will streamline the process of acquiring necessary documentation and reduce the time and effort spent on manual processes. These moves will support the development of new technologies and improve data analytics, as well as increase the efficiency of the banking sector. Promoting entrepreneurship The extension of Income Tax benefits and carrying forward of losses for startups will support entrepreneurship and promote economic development in India. The extension of the incorporation period from 7 to 10 years will provide start-ups with more time to make larger investments and recoup their investments, leading to long-term success. Overall, the Budget initiatives will shift the trajectory of growth and innovation for the tech, start-up and SaaS platforms on an upward slope. The writer is Managing Director and CEO, Zaggle- -a B2B SaaS fintech firm. He tweets @avinashgod @zaggleapp. Views expressed are personal. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.