With a strong emphasis on technological innovation, the cornerstone of a major transformation of the Indian economy was laid in the 2018 Union budget. While the previous budget encouraged an innovation-driven approach , the current budget has been followed up in the form of strong leadership and a focused methodology to strengthen the culture of innovation in India.
First, recognizing the catalytic role that fintech companies have played globally, the Union budget has, for the first time, laid the groundwork for political empowerment and the creation of an institutional framework enabling fintech companies to grow while creating impact for MSMEs. to generate growth and enable job creation. In order to further catapult the Indian fintech revolution, it is imperative to break down barriers to innovation through revolutionary models. Creating a ‘regulatory sandbox’ could serve as a ‘safe space’ in which FinTech companies can test innovative products, services, businesses and operating models without having to face the usual regulatory consequences. . A pro-innovation perspective coupled with bold policies as outlined in the budget will advance fertile ideas to thrive through a smooth experimentation phase.
Second, the budget highlighted the strategic direction towards futuristic technologies such as blockchain, artificial intelligence, Internet of Things to usher in digital India literally. Using these cognitive technologies to provide targeted solutions and funding of public infrastructure can bring maximum social impact and development to the bottom of the pyramid. One example is Dubai, which is set to become the world’s first government powered by blockchain, a strategy that can potentially save 25.1 million man hours, or $ 1.5 billion in savings per year. for the Emirates. In the future, these technologies are expected to be an integral part of India’s overall development agenda.
Third, the budget re-emphasized the seedling role VCs and angel investors play in building an innovation ecosystem. The initiative to design a separate policy for hybrid instruments to attract foreign investment in niche areas, in particular for startups and venture capital firms, would ensure adequate capital support for start-ups Are growing. In addition, extending the date of incorporation of startups to March 31, 2021 from March 31, 2019, in order to benefit from the benefits of section 80-IAC would help and promote the future innovation pipeline. In addition, the proposal to streamline the terms of turnover to reap the benefits would give entrepreneurs a much needed boost to continue to innovate and run sustainable business operations with strong financial models in place.
Fourth, the launch of the Cyberphysical Systems (CPS) mission would foster and promote R&D through dedicated centers of excellence. These centers can unlock vast economic and societal potential and strengthen national security. On this basis, doubling the allocation to Digital India to over Rs 3,000 crore would have a multiplier effect.
Amid tectonic shifts in global economic policies and rapid digital advancements, the bold policy steps adopted over the past year have laid the foundation for a vibrant and vibrant India. With India’s aspirations to become the cradle of futuristic innovation and to provide affordable and quality services to 1.3 billion people, creating an ecosystem based on innovation is of paramount importance. . I think India has effectively galvanized these technological advancements within a political framework, with the ethics of design, innovation and creativity in entrepreneurship.
This budget gave a major boost to “Digital India” in its attempt to mainstream the “culture of innovation” in India and created a unique window to generate entrepreneurial opportunities for its vast young population.
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