Budgeting for the future of tech

The decade ahead for the government will have more technology-based services than ever before. 

The Budget announcements made by Finance Minister Nirmala Sitharaman indicate that the government is ready to embrace the benefits of technology in diverse roles and sectors. The focus on technology includes agriculture, textiles, urban renewal, ports and healthcare.  

Phrases like Internet of Things and machine learning, which were alien to the government, are now part of official lexicon. 

This is an important shift for governments since it must counter the perception that higher use of technology is at the cost of employment and job creation.  

“The new economy is based on innovations that disrupt established business models. Artificial intelligence, Internet-of-Things, 3D printing, drones, DNA data storage, quantum computing, etc., are re-writing the world economic order. India has already embraced new paradigms such as the sharing economy with aggregator platforms displacing conventional businesses. Government has harnessed new technologies to enable direct benefit transfers and financial inclusion on a scale never imagined before,” the Budget says. 

The Budget has also announced investment in the future. It has promised to set up data centre parks and a National Mission on Quantum Technologies and Applications with a fund of Rs 8,000 crore for a five-year project. “Quantum technology is opening up new frontiers in computing, communications, cyber security with wide-spread applications. It is expected that lots of commercial applications would emerge from theoretical constructs which are developing in this area,” the Finance Minister announced. 

The government has also provided a much needed Rs 6,000 crore boost to provide rural regions with Bharat Net fibre-to-home connectivity. 

Realising the importance of artificial intelligence in managing data, the government is now ready to deploy analytics for official statistics. A new policy on official statistics would use AI for data collection, integration, assessment and dissemination. Hopefully the archaic, flawed and poor data collections systems would be replaced rapidly with new AI-led processes.

India is a laggard in investing in new technologies. Government bodies and private enterprises have not invested enough in developing and enhancing emerging technologies. Small and smart start-ups are doing a better job of developing and deploying such technologies. But it is better late than never in this field where there is a breakthrough almost every six months. 

Focus on local development is important. Hindustan Aeronautics, for instance, is moving to manufacture unmanned combat aerial vehicles with an Israel Aerospace Industries. 

Linked to the use of emerging technologies is the oft-repeated need for revamping education. Instead of obsolete four-year degrees, the government must consider a life-long learning approach for students and professional. Short courses that are linked to market needs and breakthrough technologies will be far more useful than degrees that are outdated from day one.  Perhaps the better encouragement of technology is its usage. Even as the government allocates billions for development, it must also change its rules so that it can utilise the services of young tech companies. 

Government rules still focus on legacy, size and precedence for granting work to private companies. As the delivery of government services depends increasingly on technology, the government will have to consider ways of involving small and smart companies.  Such changes should be done before the rollout of high-speed connectivity promised by 5G mobile services. China’s investment in technology has outshone even the US. India has a responsibility to protect its interests by investing, encouraging and deploying emerging technologies. 

The Budget announcements are a good start and will bear fruit for the country once related efforts are made simultaneously.