Tech Industry Sees Growth, Calls for Focus on Manufacturing & Innovation

New Delhi, Jun 5 (PTI) The technology sector will emerge as a centre of key investments, the industry said on Wednesday as it hopes that the new government will continue to prioritise hi-tech manufacturing, innovation, and entrepreneurship.

The industry's comments come as the Lok Sabha elections have handed a clear majority to the National Democratic Alliance (NDA), although the BJP has fallen short of the magic number for the first time since 2014, making it critically dependent on its allies for the government formation.

Picus Capital, an early-stage technology investment firm, said the technology sector will emerge as a centre of massive investments.

"With the government's continued commitment to promoting innovation and entrepreneurship, India could be propelled into becoming the leading country in global technology transformation," Naman Jhawar, Partner and Head of India and SEA, Picus Capital said.

A new administration often brings policy shifts that can impact various sectors differently, he observed.

"We should expect a period of regulatory adjustments as the new government will implement its agenda, which may include changes in taxation, trade policies, and industry regulations. These changes will present opportunities for new strategic investments, particularly in sectors poised to benefit from new initiatives," Jhawar said.

Varun Gupta, co-founder of BOULT, believes that the new government is likely to prioritise innovation, youth empowerment and entrepreneurship in line with the overarching focus on governance, development and performance.

"As our sector maintains its upward trajectory, government support remains instrumental in bolstering global competitiveness," Gupta said, adding that the electronics sector, in particular, is poised to transcend mere import substitution and evolve into a formidable export hub.

The production-linked incentive (PLI) scheme tailored for hearables and wearables has the potential to play a pivotal role in realising the government's ambitious export targets, providing a substantial boost to the sector's competitiveness and contribution to the global market, he noted.

Harsh Gahlaut, co-founder and CEO of FinEdge, said more steps can be taken towards further digitalisation.

"While new policies should be introduced, the new government should continue to push the Indian manufacturing sector to make it competitive, especially on the defence manufacturing, semiconductor and renewable energy side," Gahlaut said.