Tech industry welcomes Budget 2024's thrust on digital public infrastructure
The emphasis on further digitalisation of the economy through investments in digital public infrastructure will bring long-term benefits to the technology industry in India.
In her Budget 2024 speech, Finance Minister Nirmala Sitharaman indicated an increased thrust on digital public infrastructure (DPI) and technology, which are expected to usher in medium- to long-term benefits for India’s technology industry.
In addition to these proposals, the Budget also expanded the scope of safe-harbour rules, which relieve taxpayers from certain obligations, and assessment of transfer pricing procedures. These are expected to increase the flow of investments into the technology sector in India.
Industry body NASSCOM has welcomed these steps.
“We will now be working with the government on the details so that the Budget announcement is translated into actual reforms in the safe harbour and transfer pricing framework. Once done, this would make India’s transfer pricing regime more attractive and competitive, boost IT exports and ease business for Global Capability Centres (GCCs) and the IT services industry,” the statement said.
The Indian IT industry had sought further easing these rules as these were becoming hindrances to the growth of the sector, especially GCCs.
Brokerages conflicted about trading volumes post STT hikes in F&O trades declared in Budget
The other aspect expected to boost the overall growth of the technology sector is the thrust on digitalisation.
“We will step up adoption of technology towards digitalisation of the economy,” Sitharaman said.
Digitalisation is expected to impact segments like agriculture, education, healthcare, ecommerce etc, with DPI applications to be developed at a population scale for productivity gains, business opportunities, and innovation by the private sector, as the Finance Minister announced.
According to NASSCOM, these applications are pivotal for India's advancement and are poised to enhance productivity, generate new business opportunities, and stimulate innovation within the private sector.
Microsoft India President Puneet Chandok said, “The Union Budget and Economic Survey’s emphasis on technological innovation and digitisation sets India on the fast track to becoming an ‘AI-first nation,’ opening new opportunities for collective and inclusive progress from commerce to communities.”
Edited by Kanishk Singh
