Union Budget 2022: Important Highlights for the Technology Sector

Union Budget 2022: Important Highlights for the Technology Sector
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This article features some of the major highlights for the tech sector in the Union Budget 2022.

Finance Minister Nirmala Sitharaman presented Union Budget 2022 in Parliament today. The good news is that the nation's wait for 5G may end this year as FM announced the rollout of the 5G spectrum. In another big tech-related announcement, India gets its Digital Rupee. This article features some of the major highlights for the tech sector in Budget 2022.

5G spectrum auctions will be conducted in 2022 to facilitate the rollout of 5G mobile services. A scheme for design-led manufacturing will be launched to build an ecosystem for 5G as part of the PLI scheme, Finance Minister Nirmala Sitharaman said. The PLI scheme aims to enable affordable broadband and mobile communication in rural and remote areas. To enable affordable broadband and mobile service and proliferation in rural 5% of annual collection under USOs fund will be allocated. It will provide and promote R&D and commercialization of tech and solutions.

"With this rational allocation, the government intends to increase capital investment significantly. The government has announced a number of targeted spending initiatives that will boost the IT industry both directly and indirectly. Project Gati Shakti, on which the government is concentrating its efforts, will usher in a major shift in the country's supply chain management. For projects like these, the use of technology, as well as the expanded use of technology, will be critical. This will boost Cloud usage even more, with various AI use cases and benefits for technologies like blockchain. The government's commitment to education and Edutech will have a greater impact on education quality, resulting in more highly skilled individuals accessible in the country. Giving a license to a renowned international university will strengthen this skill much more," said Sandeep Lodha, Co-founder at Netweb Technologies.

He added that the introduction of 100 television channels will benefit the media and broadcast industries, which will necessitate a large amount of IT-related equipment, as well as a large number of portals for learning management systems. It will be a significant benefit to the IT business, and essential technologies such as cloud, servers, and other forms of technology distribution will benefit greatly, that the government's investment in digital banking and fintech will help to improve financing and overall encourage the entrepreneurial spirit, as well as boost the IT sector by providing the necessary infrastructure. The government's announcement of a digital rupee and the adoption of blockchain technology will boost the IT sector.

Further, Sandeep highlighted, "The government's announcement of a 5G spectrum auction between 2022 and 2023 was on track. It's encouraging to see the PLI plan for design-led manufacturing announced; this will aid in the development of Make in India goods and solutions. We applaud the government's commitment to R&D, which has been formalized by allocating 5% of the Universal Service obligation to it, but we'll have to wait and see how effective it is on the ground; R&D has a cycle, and the sooner we get in, the sooner we can start rolling out products when the actual implementation begins."

Citing the 5G spectrum initiative, Vishwadeep Bajaj, CEO of ValueFirst, said: "Union Finance Minister Nirmala Sitharaman announced earlier about initiating the 5G spectrum in India next year. This development is incredible, especially for the banking sector. The spectrum will provide faster and simpler payment options, which will make mobile and digital payments even more appealing to the masses and merchants alike, further boosting usage. This is key to economic growth. Another major advantage of 5G will be its ability for banks to improve proactive fraud prevention and take informed decisions in real-time. Processing data, verifying the nature of transactions, confirming transaction amounts and funds availability, consulting multiple data instances in real-time, coupled with customer geolocation and merchant ID, will reduce fraud detection errors and false positives, thereby protecting consumers and the bank's bottom line."

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