The Indian economy must match the pace of adopting digital and innovative technologies for a seamless digital transformation. Technology has the potential to be a critical pillar in nation-building in the current century. However, it needs support from stakeholders, including the government, to ensure that technology can achieve its potential benefits and play a critical role.

The Indian government has demonstrated a focus on promoting the sector’s growth, including AI and data analytics, in the last few years. With initiatives like investments in research and development, tax incentives for start-ups, and the creation of digital infrastructure, the government has been playing an active role in supporting the technology sector.

The Union Budget 2023-24 has continued to build further on the long-term priorities set by the government. The focus on Digital India, start-ups and ease of doing business continued to rank high on government’s agenda in this budget. Promoting a digital revolution and the use of Artificial Intelligence is expected to help the AI and data analytics industry to grow at a fast pace.

Key budget announcements

The Union Budget 2023-24 had a lot in store for the AI and data analytics industry. The establishment of three Institutes of Excellence for Artificial Intelligence development is critical for the country’s development, significantly impacting the AI industry. It is expected that these centres will also emerge as incubators that will create a steady supply of talented AI/ML professionals and create a robust research ecosystem in the country.

In addition, the introduction to the National Data Governance policy will enable access to anonymized data. While the data privacy act is waiting for parliamentary approval, it is good to have an overall data governance policy framework clearly outlining the do’s and don’ts of data consumption for various research, education and commercial purposes. Similar to how the government liberalized services exports with SEZs and communication with telecom policy, a proper data governance policy is expected to be a mass enabler for using and consuming AI in various sectors.

These announcements will produce more AI-powered and data-centric innovation in start-ups, education, agritech, manufacturing, banking and automation, thereby enhancing growth, exports, research outcomes etc., in these industries.

Impact on AI and data analytics industry

The vision of “Make AI in India and Make AI work for India” will go a long way in supporting the growth of the AI and data analytics industry. The budget promoting AI/ML/data management helps job creation in high-tech areas in AI and Data analytics. It is expected that Machine Intelligence will soon drive the economic and overall development of the country.

AI and Machine Learning are expected to play a critical role in the future of every major sector. However, you need a large amount of data to run algorithms and validate outcomes. The ability to access anonymized data will help drive AI/ML research outcomes and create an enabling ecosystem for AI/ML and data analytics industry.

Simply put, the budget is pro-technology and start-up with forward thinking and a positive tone. AI and data analytics companies will be able to generate new growth opportunities with the announcements made in the budget.