Industry pins hope on support for deep-tech, digital, AI from new govt

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With AI and new-age technologies set to drive transformation agenda across sectors, the new government would need to steer ahead with unwavering focus on tech and digital innovation to sustain robust growth and to realise ambitions of a 'Viksit Bharat' by 2047, experts say.

Analysts believe that Centre will continue to build on its storied success around electronics and semiconductor manufacturing, as well as digital public infrastructure while according high-priority to AI, and deep-tech domains, notwithstanding a weaker mandate for the BJP-led NDA.

Given past impetus on technology-led development, the momentum on digital payments, tech-based startups, entrepreneurship and innovation could continue, despite the likely return of coalition politics.

As such, India's tech achievements have scaled new highs, be it digital public goods, or fintech, AI or drones for various use cases.

India Electronics and Semiconductor Association (IESA) President Ashok Chandak said that over the past five years, the Modi government has implemented economic reforms fostering growth, particularly in the semiconductor and electronics sectors. He expects that the "trend will continue, contributing to the Viksit Bharat vision and making India a developed nation by 2047".

"IESA will present a blueprint to the new ministry, emphasising incentives and initiatives for these sectors over the next five years. The goal is to enhance local value addition, reduce import dependence, and position India as a global leader in semiconductor and electronics production," Chandak said.
 

According to IESA, key focus areas are job creation, education, talent development, manufacturing, startup support, global collaborations, and IPR development, supported by tailored government incentive schemes.

All eyes would also be on crucial regulations that are awaiting the next logical steps -- the rules for Digital Personal Data Protection, as also crafting the framework for Digital India Act to replace the archaic IT Act, 2000.

"We expect the new government to facilitate further expansion of the digital ecosystem while addressing key challenges such as interoperability, policy frameworks, cybersecurity, financial literacy, and the digital divide. This will empower fintechs to provide out-of-the-box financial solutions to a broader audience, catalyse financial inclusion, and fast-track the adoption of AI and ML capabilities," Rishabh Goel, co-founder and CEO, Credgenics, said.

Goel said he looks forward to policies that further enable ease of doing business, nurture tech-startups with sustained access to funding, and safeguard the intellectual property.

"We are confident that the focus on sustainable infrastructure development, large-scale skill enhancement, and bridging the gaps in digital connectivity will provide the necessary impetus for businesses to scale and thrive," Goel said.

Bhuvan Rustagi, Co Founder and COO of Per Annum, expects the new government to provide a more condusive environment for startups to innovate, and widen the reach of financial services to the masses.

As per available trends, BJP is likely to get about 240 seats in the 543-member Lok Sabha. With a landslide eluding the party, it will have to rely on allies like TDP and JD (U) to form the next government.

Industry watchers believe that a weaker mandate for the BJP or the need for coalition formation could trigger market volatility.

"However, sectors such as fintech, health-tech and consumption could outperform, given their resilience to political uncertainties," Samir Bahl, CEO - Investment Banking of Anand Rathi Advisors, said.

A Gururaj, Managing Director, Optiemus Electronics, believes India is poised to become a global electronics manufacturing hub in the coming years.

"We will continue to work towards growing the electronics supply chain in India including design capabilities for the next level of growth," Gururaj said.