What Leaders Expect in Technology Developments in Union Budget 2021by Priya Dialani January 27, 2021
COVID-19 pandemic has been an impetus for innovation and digital adoption.
As the new year starts, the budget will roll out soon to mend the economy of India. The Union Budget 2021 will be introduced by Finance Minister Nirmala Sitharaman on February 1, 2021. As she prepares to declare the significant budget, there are essential expectations as the nation desires to recuperate from the pandemic-actuated economic stun.
The COVID-19 pandemic has seriously disturbed the economies across the globe remarkably. To give help to the pandemic-battered industries, the government reported the Atmanirbhar Bharat stimulus package. From broadening deadlines for recording tax returns to decrease in determined withholding tax rates, a few measures were embraced to protect the economy. The government additionally presented the LTC cash voucher plan to support spending. To push development and the economy ahead, the government is probably going to introduce a few policies to raise incomes.
Technology has been one of only a handful areas to show strength, and the COVID-19 pandemic has been an impetus for innovation and digital adoption across areas. India has been one of the greatest and fastest-growing digital markets on the planet.
Given the part of the technology sector in the development of Digital India, it is normal that the public authority may execute successful and ideal approaches in making the digital framework and the environment to support innovation.
Mr. Niraj Hutheesing, Founder and Managing Director, Cygnet Infotech sees the ’21 Union Budget as a house of opportunities. He says, “The ’21 Union Budget provides two big opportunities. Firstly, boost economic growth by scaling investment in digitization. Secondly, drive technology enabled rationalization of the country’s tax infrastructure. The former will bring employment and self-employment opportunities for the youth through digital initiatives of Start-ups and MSMEs. The latter will enable businesses to thrive in a simplified indirect- tax compliance regime powered by new technologies like hyper automation. This will also ensure that the funds collected through GST are used efficiently and help in generating economic growth in this financial year. It is important to have a set framework and policy for GST compliance for all businesses in India, let us see how the government addresses this.”
Areas like real estate and automobile have requested that the government should give more tax cuts to residents and increase their disposable income. The country’s healthcare services area likewise has high expectations from the budget in the wake of the COVID-19 pandemic. Then, residents are expecting some tax concessions in the upcoming budget.
According to Sumit Sood, Senior Vice President & Head of APAC, GlobalLogic, “As the upcoming Union Budget 2021 is taking the centre stage, numerous sectors across India have huge expectations on how it will pave the right path for economic recovery from the COVID-19 pandemic impact. Technology sector, that played a vital role in digital adoption and business continuity, expects operative and promising policies that not only support innovation and business continuity, but create a robust digital ecosystem. To support India’s growing digital economy, it is imperative to bring forth essential regulatory guidelines and incentivize R&D of new-age technologies like Artificial Intelligence (AI), Machine Learning (ML), Blockchain, etc.”
Boosting innovative work of cutting-edge advancements, for example, machine learning, artificial intelligence, robotics, and so forth could help harness India’s savvy science and engineering talent to assemble its essential capacities in core scientific and industrial research, and furthermore go about as a multiplier for the more extensive economy.
According to Mr. Satish Pala, Senior Vice President, Digital Solutions, Indium Software, “The 2021 Union Budget is awaited with bated breath by India’s IT industry after having gone through a downward spiral due to the pandemic. The Artificial Intelligence (AI) & Analytics firms that cater to services in machine learning, deep learning, big data, IOT Analytics, Industrial IOT, etc. are in the same boat as well. There are a few areas that could benefit the AI & Analytics Industry such as –tax benefits in niche AI products & services could help assist in more R&D investments by private firms. This in turn will increase the ecosystem of Make In India AI firms from start-ups to established firms.”
The government is expected to apportion more funds towards fortifying technological capacities with respect to boosting online education in smaller cities, towns and provincial territories. Higher investment to fortify the edtech area is additionally a possibility. There are expectations that the government will spend more on key project-oriented sectors to create higher employment. A few plans like MNREGA might be additionally extended.
Satish further adds, “Another expectation would be for the government to invest more in AI-related courses, R&D centres and digital initiatives. Data Security & privacy-related policies and guidelines could help bring some sanity into the chaotic digital space with the explosion of data assets.”
The budget additionally holds significance from the sovereign rating point of view and a corona cess will be presented to meet the COVID-19 vaccine-related consumption. In the midst of a financial shortfall situation and in a way to address it, limited assets are accessible for boosting spending by a huge percent. Thus now, unique cost heads will be reshuffled with the end goal that needy areas get the greatest allocation, while financial discipline is clung to.