Tech Budget 2024: How India’s interim union budget is set to shape AI for all
As India charts its course towards becoming an artificial intelligence (AI) powerhouse, the Union Budget for 2024-25 assumes critical significance, building on the substantial groundwork laid in the previous fiscal year. With a focus on ethical safeguards, upskilling initiatives, and supportive policies for startups, the budget is likely to aim at fortifying the nation’s AI sector for sustained growth.
Ethical AI Practices: Governance and Regulation
Recognizing the potential biases that AI systems may inherit from non-uniform data distribution, the budget may emphasise the necessity of regulations. Governance regulations to establish ethical standards for AI developers and companies. Drawing inspiration from the Digital Personal Data Protection (DPDP) Act, the government is likely to look at setting clear guidelines for the meaningful use of personal data, guarding against malicious algorithms and deepfakes, Financial Express reported.
Also read: Tech Budget 2024 Live Updates: FM at Parliament to present Interim Budget
The incorporation of governance tools, such as model cards, is likely to be advocated to prevent the misuse of AI solutions. These short documents would encapsulate crucial information about model usage, intention, and performance, ensuring transparency and ethical usage. Additionally, the establishment of a regulatory body, leveraging industry experts, is likely to be proposed to address inconsistent AI usage and ethical infringements.
Strategizing India’s Global AI Position
The AI industry, with an estimated year-over-year growth rate of 30 percent, plays a pivotal role in propelling India towards its ambitious $5 trillion economy target. Leveraging AI in various sectors promises substantial improvements, from reducing legal case backlogs and enhancing tax compliance to predicting disease risks and detecting fraud in government schemes.
The budget has a unique opportunity to implement Public-Private Partnership (PPP) models, optimise infrastructure, and focus on centralised data repositories, fostering completeness, trust, and controlled access.
Anticipation for AI Education and Skill Development
Building on the momentum created in the 2023 budget, the government may allocate resources for AI Centers of Excellence (CoEs) in educational institutions. These CoEs, established with a significant outlay, will foster partnerships between industry and academia, driving interdisciplinary research and solutions in key areas like healthcare, agriculture, education, and sustainable infrastructure.
With a recognition of the need for increased education spending, the budget may enhance AI-based vocational training. This will empower a wider workforce, including those in Tier-2 and 3 institutes, enabling them to contribute meaningfully to citizen services through the application of AI.
Supporting AI Startups: Financial Incentives and Tax Deductions
The National DeepTech Start-up Policy (NDTSP), formulated in 2023, remains a key instrument to stimulate innovation and economic growth in the AI startup landscape. Despite challenges in the global macroeconomic environment, AI startups have shown resilience.
Expectations for the 2024-25 budget include financial incentives and tax deductions for AI startups. The Startup India initiative’s positive impact is acknowledged, and further support is sought through measures addressing taxes, carry-forward losses, investments, and employee stock options. Encouragement for AI adoption in various sectors, along with funding mechanisms like the Startup India Seed Fund Scheme (SISFS), is anticipated to enhance the growth of AI startups, particularly those operating in tier-2 and 3 cities.
As India charts its course towards becoming an artificial intelligence (AI) powerhouse, the Union Budget for 2024-25 assumes critical significance, building on the substantial groundwork laid in the previous fiscal year. With a focus on ethical safeguards, upskilling initiatives, and supportive policies for startups, the budget is likely to aim at fortifying the nation’s AI sector for sustained growth.
Ethical AI Practices: Governance and Regulation
Recognizing the potential biases that AI systems may inherit from non-uniform data distribution, the budget may emphasise the necessity of regulations. Governance regulations to establish ethical standards for AI developers and companies. Drawing inspiration from the Digital Personal Data Protection (DPDP) Act, the government is likely to look at setting clear guidelines for the meaningful use of personal data, guarding against malicious algorithms and deepfakes, Financial Express reported.
Also read: Tech Budget 2024 Live Updates: FM at Parliament to present Interim Budget
The incorporation of governance tools, such as model cards, is likely to be advocated to prevent the misuse of AI solutions. These short documents would encapsulate crucial information about model usage, intention, and performance, ensuring transparency and ethical usage. Additionally, the establishment of a regulatory body, leveraging industry experts, is likely to be proposed to address inconsistent AI usage and ethical infringements.
Strategizing India’s Global AI Position
The AI industry, with an estimated year-over-year growth rate of 30 percent, plays a pivotal role in propelling India towards its ambitious $5 trillion economy target. Leveraging AI in various sectors promises substantial improvements, from reducing legal case backlogs and enhancing tax compliance to predicting disease risks and detecting fraud in government schemes.
The budget has a unique opportunity to implement Public-Private Partnership (PPP) models, optimise infrastructure, and focus on centralised data repositories, fostering completeness, trust, and controlled access.
Anticipation for AI Education and Skill Development
Building on the momentum created in the 2023 budget, the government may allocate resources for AI Centers of Excellence (CoEs) in educational institutions. These CoEs, established with a significant outlay, will foster partnerships between industry and academia, driving interdisciplinary research and solutions in key areas like healthcare, agriculture, education, and sustainable infrastructure.
With a recognition of the need for increased education spending, the budget may enhance AI-based vocational training. This will empower a wider workforce, including those in Tier-2 and 3 institutes, enabling them to contribute meaningfully to citizen services through the application of AI.
Supporting AI Startups: Financial Incentives and Tax Deductions
The National DeepTech Start-up Policy (NDTSP), formulated in 2023, remains a key instrument to stimulate innovation and economic growth in the AI startup landscape. Despite challenges in the global macroeconomic environment, AI startups have shown resilience.
Expectations for the 2024-25 budget include financial incentives and tax deductions for AI startups. The Startup India initiative’s positive impact is acknowledged, and further support is sought through measures addressing taxes, carry-forward losses, investments, and employee stock options. Encouragement for AI adoption in various sectors, along with funding mechanisms like the Startup India Seed Fund Scheme (SISFS), is anticipated to enhance the growth of AI startups, particularly those operating in tier-2 and 3 cities.
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