The Union Budget 2024 Allocation for AI, and Emerging Technologies is Commendable
From Akash Manwani, the Secretary-General
Dear Members, Subscribers, and Well-wishers of the Indian Society of Artificial Intelligence and Law,
We extend our heartfelt congratulations to the Government of India for the forward-looking initiatives outlined in the Union Budget 2024-25. The budget's focus on innovation, research, and development in critical technology sectors is a significant step towards realizing India's potential as a global AI powerhouse.
Increased Allocation for MeitY and AI
The Ministry of Electronics and Information Technology (MeitY) has received a substantial 52% increase in its budget allocation, totaling Rs 21,936 crore for the financial year 2024-25. This includes a dedicated Rs 551.75 crore for the IndiaAI Mission, aimed at bolstering the country's artificial intelligence infrastructure. The mission's objectives include establishing advanced computing capacity, innovation centers, datasets platforms, and supporting AI startups.
While this allocation is commendable, concerns persist over the adequacy of the funding to achieve the mission's ambitious goals. It is to emphasize the need for increased investments in AI research and development, as India currently lags behind other nations in terms of innovation, citation index, and global exposure.
Angel Tax Abolition: A Boon for Startups
A major highlight of the budget is the abolition of the angel tax, effective from April 1, 2024. This move is expected to unlock domestic capital for Indian startups, reducing compliance burdens and encouraging investments. The exemption of taxation on investments received in excess of fair market value will provide much-needed relief to startups and foster a more conducive environment for their growth.
Skepticism and Concerns
Despite the positive initiatives, the lack of clear policies and robust investments in AI education and infrastructure could hinder India's ability to compete globally in the AI race. Experts caution that without a focused approach, India risks falling behind in addressing critical issues such as job losses, data privacy, and ethical concerns arising from AI adoption.
Moreover, the relatively low expenditure on research and development, currently at 0.64% of the GDP, remains a concern. To truly harness the potential of AI, the government must establish comprehensive policies for AI governance, security, and ethical use while encouraging public-private partnerships, which prioritise standardisation over regulatory capture.
The Way Forward
The Union Budget 2024-25 has laid the foundation for India's AI-driven future. However, to fully capitalize on this opportunity, the government must address the concerns raised by industry experts and stakeholders. This includes:
Developing a comprehensive AI strategy with clear policies and guidelines
Increasing investments in AI research and development
Encouraging public-private partnerships and funding collaborations
Establishing robust frameworks for AI governance, security, and ethical use
Addressing potential job displacements through reskilling and upskilling initiatives
As the Indian Society of Artificial Intelligence and Law, we remain committed to working with the government and industry stakeholders to navigate the challenges and opportunities presented by AI. Together, we can shape an inclusive, ethical, and transformative AI ecosystem that drives India's growth and global competitiveness.
Regards,
Akash Manwani
Secretary-General, Indian Society of Artificial Intelligence and Law
The ISAIL Leadership
Abhivardhan, Founder & Chairperson
Pratejas Tomar, Chief Policy Advisor
Aditya Jakki, Chief Media Advisor
Mridutpal Bhattacharyya, Chief Strategy Advisor
Sanjay Notani, President of the Advisory Council
Bogdan Grigorescu, Vice-President of the Advisory Council
Kailash Chauhan, Chairperson, R&D Committee
Samridhi Jain, Co-Chairperson, R&D Committee
Ayush Chandra, Chairperson, Research Ethics Committee
