Budget 2019: Expectations for the tech sector

Technology, more often referred to as Information and communication technology (ICT) has redefined almost every sector ranging from economy to governance, education to healthcare, agriculture to transport and from industries to work-force. As a rapidly growing economy, India has a significant stake in the IT sector. Over the past few years, the Indian IT industry has drastically changed but is at a significant distance from world leaders like China and the United States.

What does the Indian IT Industry expect from the upcoming Union Budget 2019?

As the newly-appointed Union Finance Minister Nirmala Sitharaman gets ready to announce her maiden budget on July 5, the IT industry expects the Narendra Modi-led NDA government to focus more on innovative technologies like Artificial Intelligence, Machine Learning, blockchain, Cloud Computing, IoT and Robotics.

According to R Chandrashekhar, former President of the industry body NASSCOM (National Association of Software and Services Companies), the ongoing digital transformation taking place globally is making India's information technology (IT) industry stronger, a trend that would continue its growth momentum at least in the foreseeable future.

The Federation of Indian Chambers of Commerce and Industry (FICCI) stresses the need for developing a more robust ICT ecosystem for the country and expects the government to:

• announce setting up of an institutional framework in the country for artificial intelligence 
• increase budgetary allocation for digital networks and infrastructure for smart cities
• expedite the coverage of broadband network through greater investments in digital infrastructure
• strongly encourage start-ups and MSME’s working in emerging technologies
• address e-commerce readiness challenges on a priority basis

 

NASSCOM’s recommendations for Budget 2019

1. Consolidate India’s strength in Business Process Management (IT-BPM) services by introducing Special Economic Zones (SEZ) policy keeping the next twenty years in perspective.
2. Incentivize investments in Research and development (R&D)
3. Incentivize talent development and skilling 
4. Grow India as Start-up hub
5. Ease taxation regime for the digital economy
6. Promote ease of doing business
7. Invest in e-waste management

 

NASSCOM President Debjani Ghosh says, “an important focus area for Budget 2019 should be the growth Startups and SMEs. Once these companies grow, their contribution to the economy will be more than compensate for the loss due to taxes forgone. Need long term vision and commitment.”