FM Nirmala Sitharaman’s 2024 Budget has crucial role to play in India’s data sovereignty & cybersecurity

Finance Minister Nirmala Sitharaman’s upcoming 2024 Budget is expected to play a significant role in enhancing India’s data sovereignty and cybersecurity. As the country generates a substantial portion of the world’s data, there is a pressing need to boost its data infrastructure and security measures.

According to a recent IDC report, India produces over 20 per cent of the world’s data but only has 2 per cent of the global data centres. This disparity underscores the urgent need for India to invest in more data centres to manage and secure its growing data output. Geopolitical factors, the expanding manufacturing sector, and the global race for artificial intelligence (AI) development further highlight the necessity of substantial cybersecurity investments.

Focus on Security and Innovation
Julian Wheatland, CEO of Progility Technologies, emphasizes that the budget should prioritize the increased use of technology, digital adoption, skill development, job creation, and IT services. He also advocates for tax breaks on maintenance contracts to enhance the business environment.
“The key areas that the budget should focus on are increased utilisation of technology, digital adoption, digital skill development, job creation, IT services and products, and tax breaks on maintenance contracts to improve the business environment in the country,” says Wheatland.

He also stresses the importance of supporting investments in cybersecurity startups that focus on innovative technologies. These startups should develop secure communications, encryption, and advanced data protocols, which provide multiple benefits.

“More importantly though, the budget must support investment in cybersecurity startups that focus on innovative technologies such as secure communications, encryption, and data protocols that offer multiple benefits. This budget should focus on newer ventures to drive innovation in threat detection and defence, improve cybersecurity skills, stimulate job creation, and promote economic growth through technological entrepreneurship. By strategically allocating resources in the form of grants, tax incentives, and funding programs, governments and organisations can strengthen their cybersecurity defences against evolving digital threats,” he explains.

Leveraging AI for Security and Growth
AI has shown to be a double-edged sword, offering significant benefits while also posing risks as a tool for scammers and cybercriminals. However, it has the potential to act as a powerful deterrent against cyber threats in real-time.

Sandeep Agarwal, Global MD and CTO of Visionet, believes that the upcoming Union Budget should focus on AI, cybersecurity, and sustainability to transform India’s technological landscape.

“The upcoming Union Budget holds immense potential to revolutionize India’s technological landscape by prioritizing artificial intelligence (AI), cybersecurity, and sustainability,” says Agarwal.

By focusing on these areas, India can position itself as a global leader in technology and environmental stewardship. Agarwal suggests that comprehensive policies for AI governance, security, and ethical use are essential to balance innovation with robust protections against data breaches. He also advocates for incentives to establish Global Captive Centres (GCCs), which can boost local employment and technological advancement.

“By prioritizing AI, cybersecurity, and sustainability, the Union Budget can pave the way for a resilient and innovative economy, positioning India as a global leader in technology and environmental stewardship. To truly harness AI’s transformative power, the government must establish comprehensive policies for AI governance, security, and ethical use, ensuring that innovation is balanced with robust protections against data breaches. Moreover, the Budget should incentivise the establishment of Global Captive Centres (GCCs), which can significantly boost local employment and technological advancement. Streamlined processes and quick patenting procedures can attract multinational investments, driving economic growth,” he adds.

The 2024 Union Budget has the potential to revolutionize India’s technological landscape. By focusing on AI, cybersecurity, and sustainability, the government can pave the way for a resilient and innovative economy. Investments in these areas will not only enhance India’s cybersecurity defences but also stimulate job creation and economic growth through technological advancements.