Technology & IT sector expectations from Budget 2022: As Union Finance Minister Nirmala Sitharaman is all set to present her third union budget on February 1, 2022.
Here’s what the Technology & IT experts expects from Finance Minister Nirmala Sitharaman:
Deepak Mittal, CEO & Co-Founder, TO THE NEW:
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We believe 2022 will be an incredible year for the Indian IT & ITeS industry. Despite facing the worst hit during the second pandemic wave, IT spending in India was unaffected and is forecasted to increase by 7% this year. We believe the upcoming fiscal policy will encourage technology adoption. From a macro perspective, we expect it to support innovation and drive business resilience by leveraging new-age technologies.
Digital transformation should be an ongoing effort by the Indian government to pave the way for more agile and dynamic businesses. Prioritizing this effort would also result in hiring a workforce to deliver on the technological needs. Fueled by technological progress, India’s economic growth will increase exponentially.
Amit Das, Co-founder & CEO, Think360.ai:
Budgetary provisions for foundational data and information technology infrastructure, will unlock significant opportunities for growth and economic development, and an opportunity for us to be the next world leader. They are essential for cross-country distribution of opportunities, capital, wealth, and growth.
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Sarvagya Mishra, Co-founder & Director, SuperBot (PinnacleWorks):
India is still a developing economy, which needs technological advancements in a lot of sectors. Even if we talk about the advancements in the fields of agriculture, medicine, education, etc. technology is that one thing that is the common element required for the advancement of all. But, we have a long way to go in terms of technological advancements as compared to other countries, especially for making India a developed nation from a developing one. The budget which a country allocates should have a fair share towards technological advancements, as then only we will be able to digitise and automate the other industries. From home automation, to advanced agriculture tools, to medical equipment required for transplantation and major surgeries to save lives, all need technology. Therefore we hope that technology and start-ups working on these technologies should get support from the government to come up with new ideas, solutions to make India an advanced economy.
Rajesh Murthy, Vice President, Intellicus:
The Govt. should further encourage digitization of companies and 100% made-in-India software products. At present, the GST with the full input tax credit is 18% for all software products produced and sold in India. We expect this rate must be tapered down to support indigenous creators of software IP in India.
Abhishek Goel, CEO & Co-Founder, CACTUS:
To give Indian Science, Technology and Innovation a boost, it is imperative to get academia and industry to work together. Be it climate change, or clean drinking water, vaccines, or diagnostic tools, space flight or advanced tech – we need to see how the lab and the market can go together. I am hoping for a number of policy initiatives that will help drive up the private sector’s contribution to R&D and give the entire country an innovation boost.
The recent pandemic has taught us the importance of science and research. As governments across the globe were scrambling in the race for vaccine development, they realized the importance of investing in creating the infrastructure to foster the growth of science, research and imbibing a scientific temper. While the Indian Government is leading the way by initiatives like setting up the NRF, it would be good to see how it can incentivize the private sector, HNI’s to fund R&D in universities, and research institutions to take India to the next level.
Dr. Rashi Gupta, Chief Data Scientist and Co-Founder, Rezo.ai:
In today’s digitally-driven economy, we expect a significant effort to develop the IT industry. We feel that the government’s involvement in assisting businesses in progressing to the next level by providing a robust foundation for proliferating technologies like artificial intelligence is vital. The application of AI in a range of areas, as well as its role in promoting digital success for corporations and government agencies, has piqued attention. The government may use the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and National Skill Development Mission (NSDM) courses to promote AI learning in order to get the most out of this technology. Such a firm stance in favor of AI might benefit enterprises and the industry as a whole, resulting in a more prosperous future.
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Sameer Nigam, CEO, Stratbeans:
With the pandemic disrupting business and government operations, one thing is certain: technology adoption will continue to digitally transform every aspect of our lives. While the government is likely to provide incentives to each sector, the Indian IT industry deserves special attention in this year’s union budget. The sector will be critical to India’s digital economy’s development. It will also assist in resolving issues in the education, healthcare, and agriculture sectors, as well as reduce job insecurity.
The record high export of 37 billion USD in December 2021 is a positive sign and we need to continue this momentum by digitising processes and promoting skill enhancement to prepare India’s workforce as a higher per capita contributor to the GDP. It’s critical that the government takes the necessary steps to accelerate the digital revolution, by ensuring adequate infrastructure for 5G internet connectivity and launching bold initiatives to help various sectors through technology and skill development.
At present, the maximum usage of digital learning tools is for academia, though in the last two years it has seeped into other sectors of the economy as well. We, at Stratbeans, have seen heightened interest from companies across sectors like automotive, financial services, and regulatory compliance, among others, who are looking at digital tools to drive better decision-making and enhance employee productivity and performance. We urge the government to consider promoting digital learning and literacy throughout the country by developing the soft infrastructure of digital knowledge resources, which can lead to reliable skill development at a low cost.
Divay Kumar, Co-founder & CEO, O4S:
Technology-centric schemes should also be given a place in the budget as we are moving towards digitization. COVID-19 has taught us many lessons and it also made businesses of all sizes realize the importance of technology when it comes to business continuity.
Vikram Singh, CEO & Founder, TechEagle:
A dedicated budget for Drones in the Healthcare Sector by the Government of India in the 2022 budget is required to improve the sector and save lives. Drone delivery and air taxis require infrastructure policy in the urban landscape. Also, import duty exemptions or reductions shall be imposed on certain electrical and raw materials used in drone manufacturing. This might be done for a set number of years, with decisions being reviewed each year.
As a result, corresponding items can be pushed to begin manufacturing during this time, creating an eco-system for India’s Drone Manufacturing Hub. A distinct department (not a ministry) shall be formed for emerging Technology, possibly within the Ministry of IT, that would focus on the demands of UAVs as well, resulting in a more focused approach to UAVs. Most importantly, the central government should encourage increased use of drone technology in various departments, such as infrastructure, defence, healthcare, maritime, and railways. As a result, based on the Central Government’s experience, states will adopt the use of drones more quickly. Lastly, Drones developed in India should be prioritized by the government.