@Priya Jha While Managed Identity can't be leveraged with the Storage I/O Bindings directly, you could always leverage the Storage SDK directly which can leverage Azure Identity for Python as shown in this sample.
Another option to leverage the bindings without having to manage the access keys directly would be to manage the keys using KeyVault and reference them in your App Settings via KeyVault References.
This would be a good interim option until bindings do support managed identity without having to deal with the SDK directly.