In anticipation of the upcoming Union Budget, cybersecurity experts are advocating for a greater focus on cybersecurity in India, citing the increasing frequency of cyberattacks, threats, and digital transformation initiatives. These experts are calling for enhanced budgetary allocations to bolster the national cybersecurity infrastructure, improve threat intelligence capabilities, and strengthen incident response mechanisms.
Agnidipta Sarkar, Vice President of CISO Advisory at ColorTokens Inc. and former Biocon group CISO, has suggested that tax incentives should be tied to cybersecurity improvements to incentivize better cyber defense postures. Governments commonly offer various tax incentives, such as tax credits and deductions, to stimulate specific economic activities or industries. Sarkar proposed that cybersecurity investment tax credits could encourage businesses to invest in cyber defense measures and protect sensitive information from cyber threats. He also recommended additional incentives for Indian cybersecurity startups leveraging artificial intelligence to develop advanced cybersecurity platforms.
Cybersecurity leader Imran Iraqi has outlined a list of proposals for the government to consider focusing on cybersecurity. These include reducing the Goods and Services Tax (GST) on security products and services, incentivizing the production of security products under the “Make in India” initiative, allocating budget for cybersecurity courses in national skills development programs, promoting export zones for cybersecurity products, establishing startup incubation centers, and granting industry status recognition to cybersecurity.
Ashok Hariharan, CEO & Co-Founder of IDfy, emphasized three key areas for cybersecurity focus. Firstly, he highlighted the importance of investment and support for Artificial Intelligence (AI) technologies, especially in multimodal AI models and computer vision models, with tax breaks to encourage innovation. Secondly, he underscored the need for long-term capital support for deep tech initiatives in startups, as traditional capital availability for deep innovation is limited in India. Lastly, he suggested tax reforms and incentives for innovation, including revisiting the taxation of Employee Stock Ownership Plans (ESOPs) to promote entrepreneurship and innovation.
In summary, cybersecurity experts are advocating for substantial budgetary investments and policy changes in the Union Budget to strengthen India’s cybersecurity defenses and capabilities amid the growing threat landscape. They believe that linking tax incentives to cybersecurity improvements, reducing GST on security products, supporting AI investments, providing long-term capital for startups, and offering tax breaks for innovation are crucial steps to enhance cybersecurity preparedness in the country.
Published On Feb 1, 2025 at 02:27 PM IST